Veolia to return to ATH
Veolia has completed it's takeover of SUEZ now to become one of the largest companies of it's type in the world, results for 2021 have just been released so this post is really to focus on the recent drop in price and and the results that have followed after that.
Veolia recently had an ATH of around 33 euro, before it's earnings the war in Ukraine started and obviously investors got spooked and there was a sell off.
Veolia has hedged very well against fuel prices so there is no impact for that side of the business at the moment, also because they are a net supplier of energy their income has actually gone up. Coupled with that is the rise in prices for recycled material and cost savings that have been completed ahead of schedule. All of this has given a very rosy picture to the earnings.
2020 2021
Revenue 26Bn 28.5Bn
Debt 13.2Bn 9.5Bn
Dividend .70 1.00
Net income 381m 985m
Efficiencys +382m
Hard to see how the figures could have gone any better really, expected another 500m in cost savings this year due to synergies between SUEZ and Veolia, plus the revenue already generated by SUEZ and next years results should see Veolia go over a billion in net income with relative ease.
I see these results as great indicators for 2022 and the statements from Antoine Frerot are very bullish for the year ahead and the completion of 'Impact 2023'.
I see a return to 33 euro in the next couple of months and a push on to the mid to high 30s by EOY. Of course the war in Ukraine has an influence on every price action at the moment but in a strange way this may not do Veolia any harm as they are in the business of trying to provide independent energy to cities through their waste and energy segments.
Happy trading everyone and remember I am not a financial adviser so do your own DD.
Veolia recently had an ATH of around 33 euro, before it's earnings the war in Ukraine started and obviously investors got spooked and there was a sell off.
Veolia has hedged very well against fuel prices so there is no impact for that side of the business at the moment, also because they are a net supplier of energy their income has actually gone up. Coupled with that is the rise in prices for recycled material and cost savings that have been completed ahead of schedule. All of this has given a very rosy picture to the earnings.
2020 2021
Revenue 26Bn 28.5Bn
Debt 13.2Bn 9.5Bn
Dividend .70 1.00
Net income 381m 985m
Efficiencys +382m
Hard to see how the figures could have gone any better really, expected another 500m in cost savings this year due to synergies between SUEZ and Veolia, plus the revenue already generated by SUEZ and next years results should see Veolia go over a billion in net income with relative ease.
I see these results as great indicators for 2022 and the statements from Antoine Frerot are very bullish for the year ahead and the completion of 'Impact 2023'.
I see a return to 33 euro in the next couple of months and a push on to the mid to high 30s by EOY. Of course the war in Ukraine has an influence on every price action at the moment but in a strange way this may not do Veolia any harm as they are in the business of trying to provide independent energy to cities through their waste and energy segments.
Happy trading everyone and remember I am not a financial adviser so do your own DD.
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