Veolia fined more than $100,000 in US, as operating profits drop 14%
The US Occupational Safety and Health Administration (OSHA) concluded the second of two investigations into a May 3 explosion at Veolia ES Technical Solutions in West Carrollton, Ohio. As a result of these investigations, OSHA has issued an additional $64,000 in fines, bringing the total fines to $109,000.
The $64,000 in proposed penalties are based on 16 serious violations of US federal regulations governing process safety management. These regulations are intended to prevent or minimize the consequences of a catastrophic release of toxic, reactive, flammable or explosive chemicals.
OSHA’s first inspection, focusing on other workplace health issues at the facility, resulted in $45,000 in fines issued on Oct. 22. That inspection found 11 serious violations.
According to the OSHA, they initiated two inspections at this facility after powerful explosions occurred shortly before midnight on May 3.
The explosions were the result of a large cloud of flammable and solvent vapor ignited by boilers at the worksite. Two employees were seriously injured in the blasts and several onsite buildings were destroyed. Veolia ES Technical Solutions distills and purifies contaminated organic solvent solutions at the West Carrollton facility.
This second set of serious citations allege that the company failed to conduct compliance audits every three years to ensure that policies and procedures were in place for the handling of flammable liquids. They also relate to worker training deficiencies, inadequate testing and inspections of piping and processes, a lack of written standards for operating procedures, maintaining mechanical integrity of equipment, and other items involving process safety.
In a separate development, new figures are out today (9th November 2009) showing:
* Veolia’s revenue for the first nine months fell 2.7%, missing forecasts, as the economic downturn continued to hurt its waste business.
* Veolia Environnement’s revenue in the nine months to Sept. 30 fell to EUR25.36 billion from EUR26.07 billion in the same period a year earlier.
* Revenue for the waste division over the period fell 10.9% to EUR6.78 billion from EUR7.61 billion in the same period a year earlier.
* Veolia also said it plans to have sold around EUR1 billion of non-strategic assets, with already EUR700 million divested by the end of September, and “the outstanding balance is already committed.”
* “In accordance with the commitments made in March 2009, priority continues to be given to cash generation. The group maintains stringent control of maintenance investments and greater selectivity with respect to growth investments,” the company said.
* Veolia’s operating cash flow over the nine months dropped 7.5% to EUR2.82 billion compared with EUR3.05 billion in the year-earlier period.
* Veolia shares have lost 2.7% over the past three months, underperforming a CAC-40 index up 6.6%, in a period during which more observers of the company realized that the company’s guidance assumes constant exchange rates. The shares closed Friday in Paris down 1.1% at EUR22.26 each.
Source: http://online.wsj.com/article/BT-CO-20091109-703246.html
* Revenue in the United Kingdom, (-4.2% at constant consolidation scope and exchange rates), was affected by the decline in industrial waste and in landfill volumes, which was unable to be fully offset by the positive contribution from integrated contracts (PFI)
Source: http://newsticker.welt.de/?module=smarthouse&id=964283
* Veolia’s Operating Profit Drops 14% on Waste Business Slowdown
* Nov. 9 (Bloomberg) — Veolia Environnement SA, the world’s biggest water company, said nine-month profit fell 14 percent as the recession cut demand for waste treatment and recycling.
* Veolia and smaller competitor Suez Environnement SA, both based in Paris, have seen demand for waste services fall as clients including carmakers and steel producers close factories to survive the economic slowdown. Veolia has pledged to sell assets and reduce costs to weather the decline. It raised its cost-cutting target for the full year to 220 million euros from 180 million euros.
* Chief Executive Officer Henri Proglio, who will remain non- executive chairman after leaving to head Electricite de France SA later this month, plans to sell 3 billion euros of assets through 2011.
* Veolia kept plans to generate positive free cash flow this year after paying a dividend and operating expenses. The company booked 268 million euros from asset sales through June and has a further 545 million euros under way, bringing total divestments to 813 million euros, according to an Aug. 6 statement. It’s aiming for 1 billion euros of asset sales this year. [Could this mean Veolia leaving the UK all together?? - Ed.]
* EDF and Veolia will work together on projects beyond their Dalkia energy-services venture, Proglio told French senators last week, according to a transcript of the closed-door session. No merger is planned, he added.
Source: http://www.bloomberg.com/apps/news?pid=20601085&sid=a2XNx8aw7MSE
