GDF Suez Trims Earnings Outlook

By William Horobin and Inti Landauro

PARIS--GDF Suez SA (GSZ.FR) Thursday cut its full-year profit guidance as mild weather in Western Europe and the closure of its nuclear plants in Belgium hit its revenue and profitability.

The French power utility said its revenue fell 7.5% to EUR54.5 billion during the first nine months of the year, while its earnings before interest, taxes, depreciation and amortization dropped 15.4% to EUR8.9 billion.

The company blamed the warm weather in Western Europe that prompted a drop in demand for natural gas and the forced halting of two of the nuclear reactors it operates in Belgium.

The French power said it is able to confirm its financial targets with a dividend payout of a minimum of one euro a share. But the utility trimmed its full-year earnings target.

GDF Suez now expects recurring net profit--which excludes restructuring costs, impairments, disposals and non-recurring items--between EUR3.1 billion and EUR3.5 billion this year. It previously expected a range between EUR3.3 billion and EUR3.7 billion it previously targeted.

Write to Inti Landauro at [e-mail]

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