Veolia Renews Contract - Analyst Blog
Veolia Water North America, a unit of Veolia Environnement S.A. (VE), received a five-year extension of its contract with the International Boundary & Water Commission (IBWC). The company renewed its contract to address sanitation needs on the Tijuana/San Diego border, valued at $35.5 million.
Under the contract, Veolia Water North America will manage, operate and maintain the existing 25 million-gallons-per day (MGD) wastewater treatment plant located in San Ysidro. The San Ysidro facility, an advanced primary wastewater treatment plant, includes five surface runoff canyon collection systems and two pump stations. Additionally, the company will also be responsible for the start-up and the long-term operation of a secondary treatment expansion unit.
Veolia Water North America is the only contractor of record at the San Ysidro facility. The partnership between the IBWC and Veolia Water has spanned the full operational life of the San Ysidro facility, which began in 1996.
Based in Chicago, Veolia Water North America is the leading provider of comprehensive water and wastewater partnership services to municipal and industrial customers. The company serves more than 14 million people in roughly 650 North American communities. Veolia Water North America operates as a part of Veolia Water, a division of the Veolia Environnement S.A, in North America. Veolia Water is the world leader in water and wastewater services and technological solutions.
Headquartered in Paris, France, Veolia Environnement provides sustainable environmental management services including water management, environmental services, energy services, and transportation. The company has more than 312,000 employees.
For the nine months ending September 30, 2010, Veolia Environnement's consolidated revenue increased 0.8% to €25,467.9 million, while adjusted operating cash flow for the period grew 3.3%. Positive results were based on the strong performance witnessed at the Environmental Services division in the recent quarter.
The Zacks Consensus earnings estimate for fiscal 2010 and fiscal 2011 are $1.73 per share and $1.95 per share, respectively.
Veolia Environnement currently has a short term Zacks #2 Rank (Buy). The company ranks at par with its closest peers Connecticut Water Service Inc. (CTWS) and York Water Co. (YORW), which also carry the Zacks #2 Rank.
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