GDF Suez bounces back with EUR 2.44 bn profits in 2014

(PARIS) - GDF Suez bounced back in 2014 after major losses the previous year, results showed on Thursday, but the energy group announced fresh cuts in response to falling energy prices.

The French-Belgian electricity and gas company posted a net profit of 2.44 billion euros ($2.77 billion) last year, the group said in a statement. Turnover slumped 6.6 percent to 74.7 billion euros compared with a year earlier.

The better-than-expected net earnings were a marked improvement on the collossal losses of 9.65 billion euros registered in 2013, after difficulties in the European energy market forced it to devalue its power plants by 14.9 billion euros.

The company said last year's growth was still affected by "the impact of climate on sales of gas in France, since 2014 was exceptionally warm, and by the impact of the fall in prices on the European electricity markets."

Besides warm weather in Europe, the company was also hit by dry weather conditions in Brazil which curbed hydroelectric production and the shutting down of three nuclear reactors in Belgium.

The group said it is putting in place a "rapid reaction plan", cutting some 250 billion euros from operational costs and reducing investments, particularly in exploration and production over the next two years.