GDF SUEZ - First Quarter 2009

    PARIS, May 4 /CNW/ -

    -   Sales Revenue(1): +12% to EUR25.6 Billion

    -   EBITDA(1): +15% to EUR5.3 Billion

    -   Net Debt: EUR27.8 Billion, Down by EUR1.1 Billion

    Unaudited data (1)                 Q1 2009   Q1 2008     Gross   Organic
    billion euro                                            growth    growth

    Sales revenue                         25.6      22.9    +11.7%    +10.0%
    EBITDA                                 5.3       4.6    +14.7%    +12.6%

    Total revenue reached EUR25.6 billion in the 1st Quarter 2009, reflecting
a gross increase of +11.7% versus the 1st Quarter of 2008 while organic growth
was up by +10%. This change was mainly due to:

    -   favourable weather conditions in the 1st Quarter of 2009 (+16 TWh);
    -   continuing expansion, both in Europe and outside Europe, including
        acquisitions in 2008;
    -   high level of gas sales to key clients, mainly booked before year
    -   resilience in the Energy Services and Engineering businesses, in a
        difficult market;
    -   Infrastructure business line benefiting from climate effects and
        higher tariffs.

    EBITDA over the period amounted to EUR5.3 billion euro, a growth of 14.7%
(+12.6% in organic growth), as compared to 1st Quarter 2008.

    The Group's growth in EBITDA in the 1st Quarter of 2009 was mainly due to:

    -   non-recurring events: the sharp fluctuation in fuel prices, which has
        only moderately impacted Exploration & Production activities, has
        provided arbitrage opportunities for the Group in a particularly cold
        winter in Europe;

    -   operational performance: energy sales, good availability level at the
        Group's nuclear plants, increased capacity and a positive
        contribution from Infrastructures;

    -   it takes into account the fact that the Group did not pass on the
        full costs of its natural gas supply in France (- EUR363 million in
        the 1st Quarter of 2009).

    This performance reflects the Group's well-balanced business model,
operational mix and geographic footprint, as well as illustrating its ability
to withstand the current crisis. Nevertheless, the growth figures do include
non-recurring items which are specific to the 1st Quarter of 2009, which
cannot be carried forward throughout the Year 2009.
    Net debt amounted to EUR27.8 billion as at end-March 2009, improving over
the EUR28.9 billion posted as at 31 December 2008. Operating cash flow largely
covered the Group's net investment of EUR1.8 billion. This includes the EUR800
million proceeds from disposals, in particular the sale of SPE for EUR600
million and the sale of 250 MW nuclear drawing rights to SPE.
    Despite an environment of depressed economic conditions and energy
prices, the Group confirms its target of an EBITDA 2009(2), higher than 2008.

    Main recent highlights

    -   In Europe, the sale of the Group's stake in SPE, Belgium's
        2nd-largest electricity company, was completed.

    -   The acquisition of Izgaz in Turkey was also completed.

    -   There was strong mobilisation across the Group to guarantee supply to
        its European clients during the coldest winter experienced in Europe
        over the last 10 years and the nearly-complete stoppage of Russia's
        gas supply.

    -   GDF SUEZ was chosen in France as the associate partner for the second
        EPR, alongside EDF; the Group's nuclear plant availability reached
        more than 90% in 1st Quarter 2009.

    -   Outside Europe, GDF SUEZ secured a EUR2.44 billion financing
        agreement for the Jirau project in Brazil;

    -   Further developments in Exploration & Production operations (Norway,
        United Kingdom, Netherlands and Indonesia).

    -   In Energy Services, COFELY was founded, as a strong, single brand in
        its sector.

    -   A EUR750 million retail bond loan was successfully issued in Belgium
        and Luxembourg in January, a jumbo EUR4 billion bond issue was
        launched in January 2009 - the largest bond issue by an industrial
        company since 2004.


    Million euro                         Sales     Sales     Total   Organic
                                       revenue   revenue    change    growth
                                       Q1 2009   Q1 2008

    Energy France                        6,354     5,228    +21.5%    +21.3%
    Energy Europe &
     International                       8,960     8,187     +9.4%     +6.0%
    Benelux/Germany                      4,207     3,843     +9.5%    +12.1%
    Europe                               2,676     2,524     +6.0%     +1.6%
    International                        2,076     1,820    +14.1%     -0.3%
    Global Gas & LNG(*)                  3,439     2,833    +21.4%    +18.9%
    Infrastructures(*)                     260       186    +39.8%    +39.8%
    Energy Services                      3,728     3,537     +5.4%     +3.8%
    Environment                          2,823     2,909     -2.9%     -2.8%
    GDF SUEZ Group                      25,564    22,880    +11.7%    +10.0%

    (*) Total sales revenue, including intra-Group services, amounted to
        8 410 million euro at Global Gas and LNG and 1 770 million euro in
        the Infrastructures Division

    Gross increase in sales revenue amounted to 2,684 million euro:

    -   Organic growth (+2,256 million euro);

    -   Changes in scope (+546 million euro), composed of:

    -   First-time consolidations (+728 million euro) mainly in Energy Europe
        & International, +447 million euro (acquisition of VPP(3) in Italy,
        Senoko in Singapore, Izgaz in Turkey, Firstlight in the United
        States, the electricity trading company Elettrogreen in Italy,
        Teesside in the United Kingdom), SUEZ ENVIRONNEMENT+94 million euro
        and Energy Services +90 million euro (acquisition of six cogeneration
        plants in Italy, for a total of 370 MW).

    -   Disposals (-182 million euro) affecting primarily Energy Europe &
        International -127 million euro (sale of ORES to the Belgian
        inter-municipalities, and Chehalis in the United States) and SUEZ
        ENVIRONNEMENT -41 million euro.

    -   Exchange rate fluctuations (-119 million euro, of which
        +214 million euro come from the USD, - 155 million euro from the
        GBP and -51 million euro from the BRL), in particular at SUEZ
        Environment ( A--60 million euro), Energy Europe & International
        (-32 million euro) and Energy Services (25 million euro).

    The Group generated 94% of its sales revenue in Europe and North America,
including 88% in Europe.

    Energy France

    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        6,354     5,228   + 21.5%   + 21.3%

    As at 31 March 2009, sales revenue from the Energy France Business Line
amounted to 6,354 million euro, up by 21.5% as compared to 1st quarter 2008.
    Growth in sales revenue based on average climate conditions over the
period reached to 9.7%.
    More than half of the gross increase came from the hike in energy prices
linked to the sharp rise in supply costs over 2008. Sales revenue in the 1st
quarter decreased by 363 million euro due to an inability to pass on full
costs (natural gas supply and other non-material costs) in the regulated
tariffs in France, since the last tariffs adjustment in August 2008. Regulated
tariffs were reset as of 1 April 2009, reflecting the drop in supply costs and
the rebasing of non material costs (11.3% drop). However it did not take into
account any margin on marketing services : a business that supplies around 10
million clients and employs approximately 5,000 people in France.
    The increase in volumes sold, due to favourable weather conditions in 1st
quarter 2009 - significantly colder than in 2008 - accounted for 44% of the
business line's sales revenue growth.
    The remainder comes from first-time consolidations, mainly in connection
with the Group's development in Home Services, as well as in wind power.
    Natural gas sales amounted to 132.7 TWh, up by 8.3% as compared to 1st
quarter 2008. As at 31 March 2009, GDF SUEZ maintained market share of 94% on
the retail segment and of 85% on the business customers segment, liberalized
since 2007 and 2004, respectively.
    Electricity sales reached 9.7 TWh and were up by 18%. Evolution of the
sales depends on the customer segment: growth on retail and wholesale markets,
with a customer portfolio amounting to over 650 000 electricity contracts
managed in France as at end-March 2009, decrease for the industrial portfolio,
due to difficult price conditions (TarTAM).
    Furthermore, the business line's power production amounted to 8.3 TWh, up
by 6%, thanks notably to good operating performance by the hydrofacilities and
improved production from the DK6 gas combined cycle, in Dunkerque.


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        4,207     3,843     +9.5%    +12.1%

    As at 31 March 2009, the Division's sales revenue came out to 4,207
million euro, increasing by 9.5% as compared to the same period in 2008 and by
+12.1% in organic terms (change in Group's structure due to the sale of ORES,
a gas and electricity distribution network management and operation company in
the Walloon Region).
    Electricity sales across the zone were flat, at 29.3 TWh, bringing sales
revenue to 2,606 million euro, reflecting organic growth of 4.5% (price
    Power generation amounted to 22.8 TWh, up by 3.3% and stood out for the
improvement in nuclear plant availability, which exceeded 90% in 1st Quarter
    In Belgium and Luxembourg, volumes sold were down by 0.9 TWh (-4.5%) and
reflected a segment by segment contrasted variation: retail posted a -0.3 TWh
drop (+0.2 TWh of which came on residential customers and -0.5 TWh on small
companies); industrial and distribution customers showed a -1.4 TWh drop;
while the wholesale market recorded a 0.8 TWh increase. In total, with an
increase in average price of 4.6%, sales revenue was slightly down, by -1.3%.
    Electricity sales in the Netherlands fell by 22 million euro and 0.6 TWh.
This change primarily reflected the increase in the distributors segment (+41
million euro) and a decrease in sales on the wholesale market (60 million
euro, or -0.9 TWh). The industrial customers segment experienced a 0.3 TWh
decrease, partially offset by higher prices.
    Electricity sales in Germany increased by 16 million euro compared to
2008, without any change in volumes. The decrease in volumes sold to
medium-sized companies and key accounts (-0.3 TWh) was offset by an increase
in sales on the wholesale market and to distributors.
    The rest of the change was due to sales outside Benedelux, which
increased by 157 million euro, with sales revenue of 218 million euro, making
for an increase, from 1.5 TWh to 2.7 TWh (primarily towards France and the
United Kingdom).
    Gas sales totalled 1,382 million as at end-March 2009, as compared to
1,136 million euro as at end-March 2008, showing organic growth of +22%, owing
primarily to more favourable weather conditions than in 2008. The volumes sold
were up across the zone (+6.1 TWh or +21.7%), primarily on sales to
residential and industrial customers in Belgium, and on industrial customers
in the Netherlands.


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        2,676     2,524     +6.0%     +1.6%

    The Europe Division generated 2 676 million euro in sales revenue for the
first quarter of 2009, representing a gross increase of + 6,0 % compared to Q1
    This growth notably reflects perimeter effects for 276 million euro,
mainly from VPP in Italy (+165 million euro), the acquisition of Izgaz in
Turkey (+61 million euro), Elettrogreen in Italy (+37 million euro), Teesside
in the UK (+23 million euro)), despite negative exchange rate fluctuations in
Eastern Europe (-85 million euro) and in the UK (-77 million euro).

    The Division's organic growth (+1.6%) has been driven by the following

    -   Central and Eastern Europe (+126 million euro), particularly through
        an increase in energy prices throughout the region, which more than
        offset the drop in volumes of electricity sold in Hungary
        (-0.54 TWh), and the decrease of volumes in Romania;
    -   Italy (+19 million euro), mainly through growth in energy prices in
        the country which offsets a decrease in volumes, in electricity
        (-0.7 TWh) and gas (-2.5 TWh), due to industrial activity slowdown in
        the country;
    -   Western Europe (-108 MEUR), primarily through a -1.6 TWh decrease in
        electricity volumes sold in Spain, in a depressed market environment.


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        2,076     1,819    +14.1%     -0.3%

    For the first quarter 2009, the International Division recorded 256
million euro in sales revenue, representing a gross increase of +14.1%
compared with Q1 2008. Excluding exchange rate fluctuations (+130 million
euro, especially thanks to the strengthening of the USD versus EUR) and
perimeter effects (+ 131 million euro : Senoko; +89 million euro: Firstlight;
60 million euro: Ponte de Pedra), organic growth was -0.3%. This stability
reflects the Group's dynamic sales performance on all its areas of
development, within a context of overall decreasing prices at international
level and of a slowdown in demand, despite particular favourable circumstances
in Brazil during Q1 2008.

    More specifically, organic growth in the business has been driven by:

    -   North America (+638 million euro), primarily thanks to SERNA (SUEZ
        Energy Resources North America, electricity supplier serving
        Industrial and commercial customers in the United States) which
        continues to record good performance despite the global financial
        crisis, as well as an increase in the LNG business reflecting higher
        volumes and prices (after hedging). Sales on the wholesale market
        decreased, despite growing volumes, following the fall of market

    -   Asia/Middle East (+9 million euro) thanks to growing sales in Turkey
        (+20 million euro), following prices increase, while the drop in
        sales in Thailand (-12 million euro) is due primarily to a outage
        period for maintenance.

    Latin America (-52 million euro) where sales in Brazil (285.1 million
euro) show an increase in exports and sales under bilateral contracts. Growth
compared to 2008 was nonetheless negative (-48 million euro) following
non-recurring performance in 1st Quarter 2008, resulting from a steady energy
allocation strategy combined with exceptionally-high spot prices. Sales
increased in Chile (+7 million euro) due primarily to higher prices, but were
down in Panama (-13 million euro) because of the conversion to coal fired
plants of the existing facilities at the Bahia Las Minas plant.


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    growth
    Sales revenue                        3,439     2,833    +21.4%    +18.9%
    Sales revenue including
     intra group transactions            8,410     6,734      +25%

    As at 31 March 2009, sales revenue contributed by the Global Gas & LNG
business line amounted to 3 439 million euro, with a gross increase of +21% as
compared to 1st Quarter 2008 (+19% in organic growth).
    Total sales revenue in the Global Gas & LNG business line, including
intra group transactions, amounted to 8 410 million euro, up by +25% as
compared to 1st Quarter 2008.

    Organic growth in the business line's contribution to sales revenue was
driven mainly by:

    -   The impact of the growth in natural gas sales, after hedging, to Key
        European Accounts, which rose from 51.5 TWh as at end-March 2008 to
        55.3 TWh as at end-March 2009, including 25.6 TWh in France as at
        end-March 2009, compared to 28.2 TWh as at end-March 2008.

    -   The positive dynamic in short-term and other sales which, after
        hedging, enjoyed positive price effects and a slight increase in
        volumes (+1.2 TWh and 28.5 TWh as at end-March 2009).

    In contrast, the business line's contribution to organic growth in sales
revenue was hurt by:

    -   Lower LNG sales, with 4.7 TWh as at end-March 2009 (5 cargoes),
        compared to 14 TWh as at end-March 2008 (16 cargoes), due to
        less-positive market conditions than in 1st Quarter 2008,

    -   Sales revenue in the Exploration-Production businesses amounting to
        428 million euro (-8% in organic terms) impacted by a decrease in oil
        prices (-47% average price decrease in Brent in EUR/boe over 1st
        Quarter 2009, compared to 1st Quarter 2008). The indexing mechanisms
        Slowed down the decrease in gas sale prices (average price of NBP
        down by 21 euro/MWh). This impact was also offset by the increase
        total hydrocarbon production, to 13.9 Mboe (+0.7 Mboe, or +6%,
        compared to the same period in 2008 - integration of new assets -
        NAM - in particular).


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    growth
    Sales revenue                          260       186    +39.8%    +39.8%
    Sales revenue including
     intra group transactions            1,770     1,573    +12.5%

    As at 31 March 2009, sales revenue contributed by the Infrastructures
business line came out at 260 million euro, up by +39.8% as compared to 1st
Quarter 2008.
    Total sales revenue in the Infrastructures business line, including intra
group transactions, came to 1,770 million euro, increasing by +12.5% as
compared to 2008.
    This contributively growth is due primarily to the development of volumes
conveyed by GrDF on behalf of third parties. These volumes amounted to 14.6
TWh, up by +4.9 TWh as compared to 31 March 2008, also positively impacted by
a return to more favourable weather conditions.

    The increase in sales revenue has also been driven by:

    -   The new tariff for access to distribution infrastructures, set on 1
        July 2008, up by +5.6% for the 2008 -2012 period;

    -   the institution of the new tariff for access to the transmission
        network as at 1 January 2009, up by 6%;

    -   the +2.5 TWh increase in storage capacity subscribed by third


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        3 728     3 537     +5.4%     +3.8%

    As at 31 March 2009, sales revenue in the Energy Services business line
totalled 3,728 million euro, up by 5.4% as compared to 1st Quarter 2008 (a
+3.8% organic growth). The Energy Services business line continued to grow,
despite a difficult environment, mainly thanks to the good performance in the
services and engineering businesses, which offsets for the slowdown in the
installation business.
    In France, services activities (Cofely France) recorded a 9.8% organic
growth (+103.3 million euro), thanks to favourable weather conditions, high
average prices for energy and dynamic commercial operations. The installation
and maintenance operations posted an organic drop of -0.8% (or -7.2 million
euro). Performance varied by entities: while Ineo posted a limited downturn in
invoicing, Endel had to deal with a more significant slowdown on its markets
and shrinking sales revenue, while the HVAC (heating, ventilation and air
conditioning) continued to enjoy double-digit growth.
    In Belgium, the increase in business was driven by the services
businesses and Oil & Gas operations, with a total organic growth of 3.7% (or
+13.8 million euro) despite negative market conditions.
    Business in the Netherlands recorded an organic decrease of -3.6% (-10.6
million euro) due to the slowdown in the economy. The government-run projects
in the field of infrastructures were not enough to offset shrinking demand
from private customers, across all of the regions.
    Tractebel Engineering continues to enjoy steady growth in all of its
businesses, with organic growth of +15.5% (+13.8 million euro).
    Outside France and the Benelux Region, the business line's activity
increased by +3.8% in organic terms, in Northern Europe (+10.5 million euro),
driven by Germany and Austria. In Southern Europe, sales revenue is stable, at
0.1%. Energy prices hurt growth in Italy and the Spanish market continues to
be depressed.


    Million euro                       Q1 2009   Q1 2008     Gross   Organic
                                                            change    change

    Sales revenue                        2,823     2,909     -2.9%     -2.8%

    SUEZ Environnement recorded 2.8 billion euro in sales revenue as at March
2009, down by 0.8% on a comparable basis at constant exchange rates, over 1st
Quarter 2008.
    The growth in sales revenue and operating performance achieved as at
end-March 2009 were presented in the release published for SUEZ ENVIRONNEMENT
on 29 April 2009.


    -   27 August 2009: GDF SUEZ 1st Half 2009 Results (including sales



    SALES REVENUE            Q1 2009         %   Q1 2008         %    Change
    Million euro                                                          Q1

    France                  10,919.3     42.7%   8,871.9     38.8%     23.1%
    Belgium                  3,775.8     14.8%   4,140.9     18.1%     -8.8%
    France-Belgium          14,695.1     57.5%  13,012.8     56.9%     12.9%
    Other European Union     7,618.0     29.8%   6,828.5     29.8%     11.6%
    Other European
    Countries                  304.5      1.2%     303.4      1.3%      0.4%
    Subtotal: Europe        22,617.6     88.5%  20,144.7     88.0%     12.3%
    North America            1,375.8      5.4%   1,214.8      5.3%     13.3%
    Subtotal: Europe
    and North America       23,993.4     93.9%  21,359.5     93.4%     12.3%
    Asia, Middle
    East and Oceania           811.3      3.2%     772.9      3.4%      5.0%
    South America              552.6      2.2%     557.9      2.4%     -0.9%
    Africa                     206.7      0.8%     190.0      0.8%      8.8%
    TOTAL SALES             25,564.0    100.0%  22,880.3    100.0%     11.7%


    Million euro                                 Q1 2009   Q1 2008   Organic

    Sales revenue                                 25,564    22,880
    Change in Group structure                       -728      -182
    Exchange rate Fluctuations                                -119

    Like-for-like                                 24,836    22,579     10,0%

    Million euro                                 Q1 2009   Q1 2008   Organic

    EBITDA                                         5,298     4,619
    Change in Group structure                       -162       -12
    Exchange rate fluctuations                                 -46
    Like-for-like                                  5,136     4,561     12.6%

    Sales revenue pro forma Q1 2008 reconciliation chart

    SALES REVENUE                                              31 March 2008
    Million euros

    Gaz de France sales revenue                                       10,376
    Suez sales revenue                                                13,707
    Sales revenue from changes from remedies (primarily
     Distrigaz and Fluxys)                                              -977
    Intra-Group Gaz de France-SUEZ eliminations                         -139
    Other                                                                -87
    GDF SUEZ sales revenue                                            22 880

    One of the leading energy providers in the world, GDF SUEZ is active
across the entire energy value chain, in electricity and natural gas, upstream
to downstream. It develops its businesses (energy, energy services and
environment) around a responsible-growth model to take up the great
challenges: responding to energy needs, ensuring the security of supply,
fighting against climate change and maximizing the use of resources. GDF SUEZ
relies on diversified supply sources as well as flexible and high-performance
power generation in order to provide innovative energy solutions to
individuals, cities and businesses. The Group employs 196,500 people worldwide
and achieved revenues of EUR83,1 billion in 2008. GDF SUEZ is listed on the
Brussels, Luxembourg and Paris stock exchanges and is represented in the main
international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext
100, FTSE Eurotop 100, MSCI Europe and ASPI Eurozone.

    Forward-Looking Statements

    This communication contains forward-looking information and statements.
These statements include financial projections and estimates and their
underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and services, and
statements regarding future performance. Although the management of GDF SUEZ
believes that the expectations reflected in such forward-looking statements
are reasonable, investors and holders of GDF SUEZ ordinary shares are
cautioned that forward-looking information and statements are subject to
various risks and uncertainties, many of which are difficult to predict and
generally beyond the control of GDF SUEZ, that could cause actual results,
developments, synergies, savings and benefits from the transaction to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and uncertainties
include those discussed or identified in the public filings made by GDF SUEZ
with the Autorite des marches financiers (AMF) and/or with the United States
Securities and Exchange Commission (SEC), including those listed under
"Facteurs de Risques" (Risk factors) sections in the Document de Reference
filed by Gaz de France with the AMF on May 15, 2008 (under no: R.08-056), in
the Document de Reference filed by SUEZ on March 18, 2008 (under no: D.08-
0122) and its update filed on June 13, 2008 (under no: 08-0122-A01), in
section 3 of the prospectus prepared for the issue and admission for listing
of GDF SUEZ shares resulting from the merger takeover of SUEZ by Gaz de France
filed with the AMF on June 13, 2008 (under ndegrees: 08-126) and the Form F4
registered with the SEC on June 16, 2008 . Investors and holders of GDF SUEZ
securities should consider that the occurrence of some or all of these risks
may have a material adverse effect on GDF SUEZ.


    (1) GDF SUEZ published unaudited sales revenue and EBITDA for First Half
        2009 as reviewed by the Board of Directors on 4 May 2009. Sales
        revenue and EBITDA for 2008 have been established on a pro forma
        basis; the data reconciliation on sales revenue published by each of
        the two groups is disclosed at the end of this release.

    (2) This target assumes average climate conditions, the absence of new
        and significant changes in regulatory requirements and an economic
        outlook and oil and electricity scenarios as established at end-
        January 2009.

    (3) Virtual Power Plant

For further information:

For further information: Tel France: +33(0)1-57-04-24-35, Tel Belgium:
+32-2-510-76-70, E-Mail:; Investor Relations contact:
Tel: +33(0)1-57-04-66-29, E-Mail:

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