Belgian gas distributor Distrigas (DIST.BT), part of French utility group Suez (SZE.FR), Tuesday posted a 32.4% rise in first quarter turnover at EUR1.74 billion, as arbitrage activities and higher energy prices boosted results.
Despite a stronger competition in Belgium and abroad, Distrigas sold 61.5 TWh (terrawatt-hours) of natural gas during the first quarter of 2008, an increase of 8.3 % compared to the first quarter of 2007, mainly as a result of an important increase in the arbitrage activities, the company said
Sales in Belgium experienced a -1.9% decrease in volume to 44.6 TWh, as a result of increasing competition. Particularly the industrial segment was hit the company said. Even though the temperatures during the first quarter were lower than in the previous year, the sales to the resellers segment remained practically unchanged. The sales to the electricity producers are also on the same level as last year.
The sales outside Belgium and arbitrage are 17.0 TWh, an increase of +48.8%. This positive evolution is entirely attributable to the arbitrage activity, since the sales outside of Belgium experienced a slight decrease as a result of more intense competition.
Looking forward the company said that given the uncertainties of the liberalized energy market and since Distrigas's activities are of a particularly seasonal nature, the positive first quarter development cannot be extrapolated over the entire year 2008.
In addition the volatility of the prices in the energy markets has a strong fluctuating impact on the net results because of accounting rules for the financial instruments used for hedging purposes.
Suez is currently looking to sell its majority stake in Distrigas to meet regulatory requirements.