Suez provides COVID-19 related update

Suez, a solid waste and recycling and water treatment company headquartered in Paris, says its board of directors met March 25 to review the actions the company has put in place to adjust to the COVID-19 outbreak and the outline the impacts on its business.

The company says its employees are fully focused on ensuring continuity of service in all the countries where it operates. “Whether we provide drinking water, wastewater or waste management for municipalities and individuals or high-quality water supply and treatment and waste management for vital industries, Suez can and will play a key role in ensuring public health protection,” the company states in a news release about its actions surrounding the outbreak.

While ensuring the safety of its employees, Suez says it has implemented continuity plans in partnership with governments and public sector and private sector clients, which have quickly set up support measures to help the company deliver its services.

Suez also outlined the impact the COVID-19 outbreak has had on its business:

• In China, Suez already noted impacts on its hazardous waste incinerators and its Macao water volumes Feb. 26. Given the gradual return of activity in that country, Suez confirms that the impacts specified Feb. 26 remain valid as of March 25: a decline of 30 million to 40 million euros on 2020 earnings before interest and taxes (EBIT) to be seen mainly in the first quarter with a progressive return to normal expected in the second quarter.
• In Europe and the Americas, although government actions have been very recent, the company says it is starting to see the first impacts on volumes and commodity prices. This is not uniform, Suez says, and activity is normal within some geographic areas, industrial sectors and clients.
• While Suez says it is too early to quantify the impact on the company’s previously reported 2020 guidance, which it has suspended, and to issue new guidance, it is clear that Suez, like all industries, likely will be significantly affected in 2020 by the consequences of the outbreak and shelter-at-home orders. Suez says it is closely monitoring the situation and will update the market as patterns become clearer.

The company says it has engaged additional measures to optimize its activity and mitigate potential impacts on revenue and profitability and to increase the group’s liquidity while also ensuring service and the safety of its employees and clients.

Suez says it will take strong short-term measures to significantly reduce its expenses and costs beyond what was originally planned. The company also will constrain its total investments this year by around 15 percent compared with 2019 levels while recognizing that capex is necessary in some parts of its business to ensure service.

In line with previous announcements and given the strength and liquidity of its balance sheet, Suez says it will propose a 2019 dividend of 0.65 euro per share, payable in May as planned. The company says it also plans to hold its annual general meeting May 12 at 2:30 p.m. CET via a webcast on its website.

Suez CEO Bertrand Camus says, “At the time the situation is improving in China, the COVID-19 pandemic is spreading all over the world. The entire Suez Group is mobilized to keep operating its essential services in water and waste, which have a direct impact on health and quality of life of citizens. The board joins me to thank all the teams who are focused on a daily basis with professionalism and calm to accomplish their mission and further the transformation of our group."