Suez reports profits for first half of 2020

France-based waste, recycling and environmental firm Suez has reported what it calls an “organic decline” of 4.5 percent in revenue in the first half of 2020 compared with 2019. Despite the harmful effects of the COVID-19 virus and subsequent restrictions, the company says its 76 million euros ($89.3 million) in earnings before interest and taxes (EBIT) were “above expectations,” crediting in part “a solid June performance.”

Although the firm remained profitable, the 76 million euros EBIT figure is more than 80 percent less than the 645 million euros EBIT figure from the first half of 2019.

“First and foremost, in an unprecedented context, Suez’s teams have worked throughout the first half to deliver safely our services with an unwavering commitment to continuity and quality,” states Suez CEO Bertrand Camus.

“In the midst of the pandemic, our teams smoothly took over the collection and recycling operations in Somerset, United Kingdom, as part of a 10-year contract,” adds Camus. “In China, we formed a new joint venture to build and operate a new facility to recover hazardous waste, notably from automotive clients inside the Shanghai Chemical Industry Park (SCIP).”

Suez says revenue in its Recycling & Recovery business unit was down by 6.6 percent in the first half of 2020 compared with the first six months of 2019. “Over the period, revenue decreased by 0.5 percent in the first quarter of 2020 and by 12.7 percent in the second quarter of 2020,” reflecting the “impact of population containment and industrial production slowdown.”

“Going forward, we cannot ignore the risks that the current context creates,” says Camus. He adds, however, that the company’s outlook “assumes no return to the region-wide lockdowns we saw in Europe and Asia in the first half of 2002, even if we expect, for example, a soft tourist season.”

Camus says, “Nonetheless, and with those caveats, we are able to give visibility to our shareholders on the remainder of the year, and express confidence in the scale of the opportunities for Suez in the rebound. Our services are essential to protect and restore the environment, as well as to enhance economic and social resilience.”