VEOLIA ENVIRON (VE)
 
Quote Price $12.02
Price change for today in $ -0.01
Price change for today in % -0.08
Open Price $11.92
Previous Close $12.03
Daily Range $11.89 - $12.07
52-Week Range $9.39 - $30.40
Volume 121,588
 
 
Brokerage Analyst Recommendations 
2 Brokerage Firms Covering VE
 
  
Strong Buy
1 		Buy
0 		Hold
1		 Sell
0		 Strong Sell
0
Average Broker Recommendation (ABR):2 
 
Description
Veolia Environnement is the only global company to offer the entire range of environmental services in the water, waste management, energy and transportation sectors. Veolia has been creating global and integrated solutions for public and private sector clients over the world. The quality of its research, the expertise and synergies developed between its teams, its mastery of the public-private partnership model and our commitment to sustainable development have made us a benchmark player in major environmental matters.
 
BANK OF NEW YORK 101 BARCLAY STREET 22ND FLOOR
NEW YORK, NY
75116, FRA
Phone: 2128152129
Fax: 33 1 71 75 10 45
Web: http://www.veolia.com/
 Industry:UTIL-WATER SPLY
Sector: Utilities
Fiscal Year End:December
Last Reported Quarter:03/31/12
Next EPS Date:05/31/12
 
Capital Structure Solvency and Cash Flow

At the end of FY09, operating cash flow declined to €3,955.8 million from €4,105.4 million at the end of FY08.  This slight decline in operating cash flow resulted primarily from lower results in the Environmental Services division (volumes, prices of recycled materials sold).  Net financial debt decreased to €15,127.0 million at the end of FY09 from €16,528.0 million at the end of FY08, primarily due to solid divestments.

For FY10, management expects to generate positive free cash flow after the payment of the dividend.

Development

VE has won and renewed numerous contracts in its priority regions of development, in France (Water: a contract with the Chartres urban authority; Transport: Mont Saint Michel public service management contract), in Europe (Water: Madrid; Environmental Services: Merseyside; Transport: Västra Götaland in Sweden), in North America (Transport: New Orleans), in Asia / Pacific (Environmental Services: renewal of the Hong Kong contract), and in the Middle East (Water: Doha). In the Transport division, the Melbourne contract was not renewed at the end of FY09.

In Brazil, Veolia Water Solutions & Technologies signed a contract with Petrobras.  In addition, Veolia Transport won the Greater Rabat contract in Morocco and set up a joint venture with RATP Développement to further develop in Asia.  Dalkia signed a partnership agreement with CEZ, the Czech Republic’s largest electricity producer, to augment industrial cooperation that could lead to asset exchanges.

Dividend

Given the good visibility on future cash flows and the strengthened financial position of the Group, the Board of Directors will propose at the Annual General Meeting of Shareholders to be held on May 7, 2010, a dividend per share of €1.21, payable in cash or in shares of VE.  These new shares will be issued with a discount of 10% of the average opening price on the Euronext of the shares over the twenty trading days prior to the day of the Annual General Shareholders Meeting less the amount of the dividend.  The ex-dividend date has been set on May 14, 2010.  The period during which shareholders may choose the option of the payment of the dividend in cash or in shares will begin on May 14, 2010, and end on May 31, 2010.  The 2009 dividend will be paid – in cash or in shares – beginning on June 9, 2010.
 




 
Last edited Mon Apr 12, 2010 01:29 AM
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Governance Social Responsibility and Employee Relations
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Acquisitions Divestitures and Joint Ventures

Acquisitions and Divestments

VE did not make any significant acquisition in FY09.  However, as a part of its asset divestment program, VE completed the following divestments in FY09:

• In August 2009, VE sold Veolia Propreté Nettoyage et Multiservices (“VPNM”) to the TFN group for €111.0 million in enterprise value.  Veolia Environmental Services sold part of its waste-to-energy business in the United States (Montenay International) for €220.0 million in enterprise value.  Dalkia sold its Facilities Management business in the United Kingdom for a total consideration of €90.0 million.

• During December 2009, Veolia water reviewed certain economic aspects (restructuring of financing) and the governance rules of its partnership with Mubadala Development Company, leading to the joint control of all Water operations in the North Africa/Middle East zone.  This transaction resulted in €189.0 million of debt reduction at the Group level. VE divested its interest in Compagnie Méridionale de Navigation Group for €45.0 million.

• The EBRD acquired an additional 6.88% equity stake in December 2009 (via a capital increase) in Veolia Voda, the unit that consolidates all the operations of the Water division in Central Europe, for €70.0 million.

• Moreover, VE has decided to divest its transport business in the United Kingdom and its renewable energy business within the Energy division in FY10.

 


Last edited Mon Apr 12, 2010 01:39 AM
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Recent and Upcoming Events

 
Major Risks

Uncertain macro environment - The possibility of an economic recession in the US can keep VE under pressure.

Development of the economic cycle - The ongoing economic weakness is impacting the waste management. 

 


Last edited Mon Apr 12, 2010 01:30 AM
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