Distrigaz Nord posts losses

The natural gas distribution company that became party of E.ON Ruhrgas” portfolio anticipates 27 million euro losses for 2005. “The results are most disappointing for Distrigaz Nord,” stated Achim Saul, the deputy general manager of the company. “The losses are due to the fact that the gas price for the end user did not increase at the same time as the natural gas acquisition price,” Saul explains. The entire gas distribution sector was significantly affected by the gap between the distribution rate and the acquisition price last year. Therefore the other distribution company, Distrigaz Sud, which was acquired by Gaz de France, concluded 2005 at a loss, as well, given that it had made small profits in the years before. Bernard Arnaud, the current general manager of the company has recently stated that end prices for natural gases – much lower than the buying prices, in addition to the payment made to suppliers in advance and the provisions of some 13 million euros are the main causes for the losses registered last year. On the other hand, Distrigaz Nord”s representative anticipates an improvement for 2006 due to the cost and price management steps being taken and to the implementation of a new organisational structure at Distrigaz Nord. ZF