Water. desalination + reuse

www.desalination.biz Water. desalination + reuse Who's Who 2018 EPCs landscape 7 Company profile: Suez Suez WTS shapes up with outlook for growth opportunities have been identified over 300 projects; revenue and cost synergies worth $13 million achieved; and new contracts signed with Total, Statoil, BP, and Petronas. Across the wider Suez group, Recycling & Recovery Europe, the largest division, generated revenues of €6,165 million, a rise of one per cent, while EBITDA fell by 1.7 per cent to €801 million; Water Europe revenue grew by 0.2 per cent to €4,680 million, helped by new business in Chile, and EBITDA fell by 4.7 per cent to €1,165 million; and at the International division, EBIDTA decreased by 1.7 per cent to €801 million, on revenues up 0.5 per cent to €3,952 million. • New division Suez Water Treatment & Solutions formed by combining Suez Industrial Water division and GE Water • Expectation for the division to grow revenues to $3.1 billion (€2.5 billion) by 2020 Company profile: CH2M and Jacobs CH2M integration to continue in 2018 • Merger of firms creates $15 billion global business • Pro forma combined earnings before taxes of $497,354, in the year to 29 September 2017 • Projected revenue growth of 42.3 per cent in the year to end-September 2018 The acquisition of water company CH2M by engineering giant Jacobs for $2.85 billion was completed on 15 December 2017, creating a $15 billion infrastructure and environmental firm. Following the deal, the business has been restructured into three new reporting divisions: Buildings, Infrastructure, and Advanced Facilities (BIAF), which includes water projects and will be led by former CH2M director Bob Pragada; as well as Aerospace, Technology, and Environmental, and Nuclear (ATEN); and Energy, Chemicals and Resources (ECR). The integration of CH2M – which has included some senior management departures in the UK and Europe – is expected to result in savings of nearly presenting significant potential to extend CH2M's leadership in design, management and lifecycle services for government and industrial clients, including operations and maintenance, and resiliency services mitigating climate threats. Jacobs is expected to benefit by expanding these capabilities globally, backed by its strong operating and project delivery platform. The combined company will have a leading global water business with the scale, critical mass and experience to capitalise on infrastructure and industrial growth." Jacobs, which is listed on the US Nasdaq market, generated revenues of $10 million, and CH2M $5.1 million, with pro forma combined earnings before taxes of $497,354, in the year to 29 September 2017. The merger consideration was $3.1 billion, including cash and shares. Projections by Zacks Equity Research suggest that the enlarged group's revenues will grow by 42.3 per cent in the year to end-September 2018, and by 12.5 per cent in the company's following financial year. by revenue at six per cent of the group total. In the current year, the acquisition is expected to contribute $2,800 million in revenue, at a growth rate of about 4 per cent based on orders received during 2017, and $290 million to EBITDA. The acquisition price was reported as €2,699 million, resulting in an impact on net debt of €687 million. The expectation is that the newly formed division will continue to grow. Mid-term targets include reaching $3.1 billion revenues by 2020, achieving gradual improvements to margin, and generating $95 million contribution to group EBITDA by 2022, of which 80 per cent will come by 2020. So far, more than $830 million of revenue Suez's year in desalination and water reuse was dominated by its acquisition of GE Water, announced in March and completed in October 2017. As a business overall, Suez's revenues grew by 4.1 per cent to €15,871 million ($19,215 million), including €510 million revenue contribution in Q4 2017 from the acquisition. Earnings before interest and tax (EBIT) increased 0.6 per cent to €1,284 million, with €52 million contribution from GE Water; and margin remained the same year-on-year, at 8.1 per cent. The new business unit Suez Water Treatment & Solutions (Suez WTS) was formed when the deal closed in September 2017, by combining Suez Industrial Water division and GE Water. The new division recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of €92 million on revenues of €971 million for the year, making it Suez's smallest business 'Water is a $100 billion opportunity, expected to grow at 4 or 5 per cent annually' Suez operating division revenues 2017 Recycling & Recovery Europe: €6,165 million Water Europe: €4,680 million International: €3,952 million Suez WTS: €971 million Other: €103 million $150 million in fiscal 2018, with a one- off restructuring cost of $225 million. Jacobs explains the rationale for the deal in terms of water as such: "Water represents an approximately $100 billion a year opportunity, expected to grow at a four to five per cent compounded annual rate,

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