Energy firm Poweo's new strategy sees lower Q1 sales
PARIS, May 13 (Reuters) - French alternative electricity and gas group Poweo (ALPWO.PA) posted lower first-quarter sales amid efforts by the company to refocus on residential and small business consumers who offer bigger profit margins.
Sales fell 6 percent to 137.3 million euros ($187.2 million) in the first quarter from 146.6 million euros in the first three months of 2008, Poweo said in a statement on Wednesday.
"This refocusing implies a slight decrease in sales for the first half-year, given the relative weight of decreasing customer segments, while the growth derived from the increasing number of residential sites should allow reengaging an overall positive trend in the second half of 2009," Poweo said.
Poweo, an independent energy supplier which is trying to take market share from former state monopolies EDF (EDF.PA) and GDF Suez (GSZ.PA), unveiled a strategy turnaround in March after hiring banks to advise on its strategic options earlier in the year [ID:nLR183330] .
It said it would now focus on residential and small business customers at the expense of industrial companies and networks that offer weaker margin perspectives given unfavourable regulatory conditions in France.
The company blamed in particular rules that allowed big companies to opt back into a cheaper, regulated tariff whenever they move premises, which Poweo said was "a psychological hurdle acting against (leaving EDF or GDF Suez for) alternative suppliers."
Poweo, which has had a hard time convincing householders to choose its offers since France fully opened its gas and electricity markets to competition in July 2007, said it had 233,000 residential clients at the end of March, up 26 percent from Dec. 31. This compared with 18,938 residential customers at end-March 2008.
But the number of professional and business clients was unchanged at 87,500.
By 0945 GMT, Poweo shares were down 2 percent at 17.81 euros in a mildly positive European utility .SX6P sector, with traders citing disappointment over the sales update.
Poweo has a market capitalisation of 206 million euros and is 29.89 percent owned by Austria's Verbund (VERB.VI), while the family of Chief Executive Charles Beigbeder holds a 12.95 percent stake.
(Reporting by Marie Maitre; Editing by Guy Dresser)
