The French energy company GDF Suez said Tuesday that its first-quarter sales edged just slightly higher and core earnings had fallen, in part owing to a difficult economic climate and the suspension of a Belgian nuclear reactor.

GDF Suez sales were 2.3 percent stronger at 24.6 billion euros ($31.9 billion), a statement said, while earnings before interest, taxes, depreciation and amortization (Ebitda) fell by 5.1 percent to 5.0 billion euros, a drop that became a more modest 1.2 percent on an organic basis that strips out foreign exchange effects along with recent acquisitions or divestments.

The group's net debt also declined meanwhile, by 2.5 billion euros to 34.1 billion euros.

GDF emphasised that the results were in line with its own guidance provided in late December.

Like many European power companies, GDF has seen business fall off as economic activity continues to drag across the continent, and it also operates several gas-powered generators that have been overtaken by coal-fired units.

In Belgium, one of the group's two nuclear power plants has been suspended, though GDF hopes for approval to bring it back online by the end of June.

Finally, GDF confirmed news that it gave first on April 11, that it would reorganise activities in France, and which a source close to the matter said could include the partial shutdown or mothballing of three of the group's four gas-powered electricity stations in France.

fpo/wai/rl

GDF SUEZ