Distrigaz Sud estimates losses

Distrigaz Sud the gas distributor, which was bought by Gaz de France, estimates losses of a maximum 7.2 million euros, with the turnover worth 720 million euros. “Until the financial reports are finalised, the situation of the company”s net results can change within this loss margin, due to several factors, among which are the evolution of receivables and financial obligations for last year”, stated Bernard Arnaud, chief executive of Distrigaz Sud. In 2004, the company saw a 1.5 million-euro profit, with a turnover standing at 535 million euros. The main factors generating these losses for 2005 are final prices of gas, much smaller than acquisition prices, as well as payment in advance of suppliers and the setting up of provisions amounting to some 13 million euros. The French include among their future plans a possible expansion of their network by acquiring local distributors, with Arnaud conditioning this measure on the existence of an offer in line with Distrigaz Sud requirements. ZF