Melbourne desalination costs still hitting Suez

Cost overruns on the Victorian desalination plant in Melbourne are still hitting the bottom line of Suez Environnement, Europe’s second largest water company reported on 1 August 2012.

The Melbourne desalination plant, for which Suez subsidiary Degrémont is part of the constructing consortium, is almost completed and should be at full capacity in December, CEO Jean-Louis Chaussade said in a statement.

In total, the order has cost the company € 237 million in net income last year and € 52 million in the first six months of 2012.

Suez reported an 82% drop in first-half profits with net income falling to € 40 million from € 221 million the previous year.