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GDF Suez writes down €15bn on tough European market

GDF Suez has written down €14.9 billion in asset values on weak profits for European thermal power generation and gas storage, it announced on Thursday.

The French utility, which owns the most UK power generation capacity of any company after the big six, took a profit hit in 2013.

The group reported earnings before interest, tax, depreciation and amortisation (Ebitda) of €13.4 billion, down 8.1 per cent on 2012. Net recurring income totalled €3.4 billion.

The company expanded mainly into emerging markets. In the UK, it bought a 25 per cent stake of 13 shale gas exploration licences from Dart Energy.

Chairman and chief executive officer Gérard Mestrallet said the results were “strong… in a very difficult environment for thermal power and gas storage in Europe”.

In 2014, the company is aiming for net recurring income of between €3.3 billion and €3.7 billion. It expects to make net capital expenditure of €6 billion to €8 billion.

The strategy, said Mestrallet, is to be “the benchmark energy player in fast growing markets and to be leader in the energy transition in Europe”.