Veolia stock marked down on lower revenue guidance

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Source: Global Water Intelligence (GWI)

Veolia shares traded down sharply this morning after the French giant revised its full-year revenue guidance to “overall stable”, suggesting that its growth trajectory has slowed, even as EBITDA continues to rise thanks to cost-cutting.

The group posted EBITDA of €2.2 billion for the first nine months of 2016 (up 5.1% at constant exchange rates), but revenues slipped by 1.2% to €17.7 billion, impacted by lower construction activity, lower energy costs, and unfavourable exchange rates.

Although the company did pick up a trio of significant waste contracts in the UK and France – worth a combined total of £1.338 billion and €240 million – big municipal wins on the water side eluded it in the third quarter.

That could all change, however, with local press reports in Armenia suggesting this afternoon that Veolia has picked up the 15-year lease contract to provide water and wastewater services to 2 million people across the country.

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