The rise in tonnage was highlighted by the UK company’s French parent in its financial report for the first quarter of 2017, published today (10 May).
But, earnings from the UK took a knock because of the stronger value of the Euro which had a negative impact of revenue of 27 million Euros. Revenue generated in the UK at 239 million Euros fell by 9.1% compared to figures recorded last year of 263 million Euros, the financial report found.
Revenue
A factor in the revenue decline was linked by Suez to the fact that despite the EfW plants contributing to volume increase, the completion of the plants had a “negative impact on revenue for the region.”
In the first-quarter of 2017, Suez globally increased revenue by +4.7% to 3.7 billion Euros.
Chief executive Jean-Louis Chaussade described the results from the first-quarter 2017 as “encouraging”.
He said: “Revenue growth posted by the Recycling & Recovery Europe division was particularly strong, fueled by the rebound in raw materials prices and the increase in treated volumes. The International division continued to show growth after a satisfactory year in 2016.”
The chief executive also highlighted the importance of Suez’ water division in increasing revenue and contributing to organic growth earnings.
Gross revenue
According to the report, gross revenue increased by 4.7% compared to the same quarter last year. This was in part due to revenues for the Recycling and Recovery Europe division which were “up sharply” at +7.4% (+€108m).
The report found that the rise is revenue from this division was primarily driven by a substantial positive price effect on secondary raw materials, particularly scrap metals and paper, which were up 64% and 22% respectively, compared with 2016.
Despite the negative impact of the EfW plants on revenue, the United Kingdom/Scandinavia region posted organic growth of +1.9% (+€6m), the report noted.
Suez announced the completion of construction on its three EfW plants in the UK at the end of March 2017, which the company said “strengthens its position in the production of sustainable energy”. The plants are located in Wilton (near Newcastle), at Severnside (near Bristol) and in Cornwall.
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