Utility GDF Suez SA's (GSZ.FR) sees its prospects in Europe limited by a lingering economic crisis and competition from heavily subsidized renewable sources, its chairman and chief executive Gerard Mestrallet said Tuesday.
Utility GDF Suez SA's (GSZ.FR) sees its prospects in
Europe
limited by a lingering economic crisis and competition from heavily subsidized
renewable sources, its chairman and chief executive Gerard Mestrallet said
Tuesday.
"
Europe
in terms of thermal power generation isn't our
priority," he said at a press conference. "We're cutting power
generation volumes there."
Subsidies for renewable energy are turning traditional power production into a
losing proposition in
Europe
. By the end of 2013, GDF Suez
had mothballed around 10 gigawatts of capacity and placed about half that under
under review.
This "shock treatment" was the only possible reaction in the face of
what remains a "difficult situation," Mr. Mestrallet said.
GDF Suez joined 11 European utilities late last year in urging an end to
support for "mature renewables," such as onshore wind and solar
powers.
Beyond
Europe
, the group is concentrating on small to mid-sized
acquisitions to keep debt under control and retain its A-type rating, Mr.
Mestrallet said. GDF Suez was carrying 45 billion euros ($61 billion) of debt
after it acquired International Power in 2012. The load was reduced to EUR30
billion by mid-2013, a year and a half ahead of target.
He denied rumors that the group was eyeing Talisman Energy.
Asked about French President Francois Hollande's proposal to create a
Franco-German venture in energy, Mr. Mestrallet said his group would join if
the joint effort was in its interest.
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