Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

GDF Suez S.A. is a French multinational energy company which operates in the fields of electricity generation and distribution, natural gas and renewable energy. GDF Suez was already a giant when it was created on 22 July 2008, by the merger of Gaz de France and Suez, but following the acquisition of Britain’s International Power, it became the world’s largest utility company. Suez Environment was spun off from Suez at the time of the original merger but the firm still holds a 35% stake in the water treatment and waste management company.

The company employs 236,000 individuals and is led by Chairman and CEO Gérard Mestrallet.

Positive Aspects

Investment from sovereign debt fund, China Investment Corp. should help reduce debt and boost the company’s presence in Asia.

CIC will initially pay US$3.2 billion for a 30% stake in GDF’s exploration business. As well as direct investment in GDF’s liquid natural gas (LNG) business, China is building three LNG terminals and has 14 in the planning stage. These will be able to service GDF’s 17 strong fleet of LNG tankers.

Reported an 8.2% rise in earnings before interest, tax, depreciation and amortization (EBITDA) helped by the consolidation of results from International Power Plc (IPR.LN).

EBITDA was EUR 8.79 billion, while 2011 first half revenues were also up, having increased by 7.9% on last year to EUR 45.7 billion.

Has launched energy trading arm to compete with financial institutions, which increasingly affect the energy market, perhaps more so than ‘organic’ demand.

Has been the first funder (50,1%) of the Jirau dam in Brazil.

Has bought five natural gas underground storage facilities in Germany and a 19.7% stake in another one.

This gives GDF the largest natural gas storage capacity in Europe at 12.5 billion cubic metres and an extremely strong position in France, Germany and the UK with regards o Natural Gas.

 

Negative Aspects

Net profit has fallen in the first half of 2011 on the same period in 2010

Net profit fell 24% to EUR 2.7 billion as a result of unusual weather conditions affecting European demand for natural gas. In addition, the previous year’s results were unusually strong, skewing the percentage change on this year.

League tables

GDF Suez appears in the following brand league tables:

Rank 42 in the Global 500 2012.
Rank 62 in the Global 500 2011.
Rank 62 in the Global 500 2011.
Rank 48 in the Global 500 2010.
Rank 40 in the Global 500 2009.
Rank 213 in the Global 500 2008.