GDF Suez takes 15bn euro write-down

French utility GDF Suez has taken a 15bn euro write-down in its 2013 results.

The value of the company’s gas storage and gas power plants has been hit by a price slump.

However, new dividend and profit guidance has helped to lift its share price.

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“This (write down) decision reflects the group’s conviction that this situation is serious and long-lasting,” GDF chief executive Gerard Mestrallet said on a conference call yester- day.

GDF proposed an unchanged dividend of 1.5 euros per share and indicated that, for the 2014-16 period, it would aim for a dividend payout ratio of 65 to 75 per cent and a minimum payout of one euro per share, payable in cash.

Kepler Cheuvreux analyst Xavier Caroen said the new dividend policy is more in line with the sector.

“We view this move as smart and positive as it gives the group flexibility to adjust it if need be,” he said.

GDF, which has an office in Leeds, employs around 219,000 people worldwide.

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