French utility Gaz de France has booked net income of E1.51 billion for the first half of 2007, down 11% over the same period of 2006, when the company booked net income of E1.7 billion. Gaz de France's performance in the period was severely impacted upon by exceptionally mild climate conditions.
<p>The company's sales revenues also fell 11% in H1 2007, to E13.78 billion, compared to E15.42 billion in the same period of 2006. Furthermore, Gaz de France (GDF) saw its operating income fall 8.7%, from E2.55 billion in H1 2006, to E2.33 billion in H1 2007.<br /><br />GDF's earnings before interest, taxes, depreciation and amortization (EBITDA) fell 4.9% to E3.11 billion, which, according to Thompson Financial, fell short of the expectations of analysts it had polled, who had expected GDF to book a 4.3% decrease to E3.13 billion. <br /><br />The company's H1 results were not only affected by the mild climate during the period, which influenced nearly all of its businesses, but also by unfavorable market conditions, reflected in particular in the low gas prices on the markets. <br /><br />GDF said that despite the environment, the group is maintaining its financial target for 2007, as announced in March 2007. EBITDA is expected to be in line with that of 2006, a target that assumes average climate conditions during the second half of 2007.<br /><br />Jean-Francois Cirelli, chairman and CEO of GDF, said: GDF intends to take advantage of the full liberalization of the energy markets and has been offering, since July 1, 2007, a new range of energy products and services for its clients in France and in Europe. The group is confident in its fundamentals and outlook, in the medium and long term.</p>