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GDF SUEZ H1 Profit Up 9.3%, Signs MOU To Merge With International Power - Update

(RTTNews) - French utility firm GDF SUEZ (GDFZY.PK) Tuesday reported a 9.3% rise in net income for the first-half, driven by higher revenues. Further, the company confirmed its targets for 2010 and 2011.

The company also said that it has signed a Memorandum of Understanding or MOU with Power generation company International Power plc (IPR.L) on a proposed combination of International Power with certain GDF SUEZ assets.

Net income for the first half rose to 3.6 billion euros from 3.3 billion euros in the year-ago period. The company noted that the first half was marked by a difficult economic context, despite some signs of recovery, particularly in demand for electricity and natural gas.

Revenues for the six months grew 0.3% to 42.3 billion euros from 42.2 billion euros the same period of last year.

In France, the group benefited in particular from an especially cold winter, the implementation of a new public service contract for natural gas on April 1, and the increase in electricity production, the company noted.

The implementation of the Efficio Plan, with 1 billion euros in savings reached as of June 30, 2010, also contributed to the company's performance.

Further, the company said that it anticipates to distribute an interim dividend of EUR 0.83 per share for the fiscal year 2010 on November 15.

The company said in a separate statement that it has signed a MOU with International Power on the proposed combination of International Power and GDF SUEZ's Energy International Business areas outside Europe and certain assets in the UK and Turkey, collectively called GDF SUEZ Energy International.

Upon completion of the combination, International Power shareholders will own 30% of the new company while GDF SUEZ will own 70%. International Power shareholders will also be entitled to receive a cash payment of 92 pence per share by way of a special dividend.

GDFZY.PK shares closed Monday's regular trading at $35.59 per share.

IPR.L is currently trading at 365.70 pence per share, down 0.70 pence or 0.19% on the London Stock Exchange.