French waste management group Veolia recorded a 6.4 percent increase in year-over-year net income for the first half of 2016, according to the company’s latest earnings report released Monday.
Veolia reported a 1 percent decline in year-over-year revenue, recording $13.4 million (€12 million) for the first six months of the year, compared to $13.7 million (€12.3 million) for the same period in 2015. The company blamed the decrease in revenue on unfavorable exchange rates, lower energy prices, and reduced construction activity in its earnings report, which otherwise showed strong financial results.
The Paris-based multinational specializes in waste management and energy services, employing more than 300,000 employees across about 50 countries. Veolia’s yincome grew from $358 million (€321 million) in the first half of 2015 to $382 million (€342 million) in 2016, according to the results. The company also reported a drop in net financial debt from $10.3 million (€9.2 million) ito $9.7 million (€8.7 million) over that time. EBITDA was up 5.6 percent, from $1.7 million (€1.5 million) in the first half 2015 to $1.8 million (€1.6 million) in 2016.
“The results achieved during the first half of 2016 were once again satisfying,” Veolia Chairman and CEO Antoine Frérot said in Monday’s announcement. “We continue to see the benefits of strict management, with savings ahead of our plan, which translated into further margin improvement and an increase in all our results.”
Monday’s announcement noted the $350 million acquisition of nuclear waste cleanup technology developer Kurion, a 200-employee company based in Irvine, Calif., that specializes in separation, stabilization, and robotics. The company said the “significant reduction” in net financial debt from $10.3 million to $9.7 million included the reimbursement of Transdev intercompay loans for the purchase of Kurion. Veolia is moving forward with a draft agreement with the Caisse des Depots, regarding the divestment of Veolia’s stake in Transdev, which will allow the group to “complete its strategic refocus,” according to the company.
