Société générale de financement du Québec: Financial results as of June 30, 2003
Montréal, August 28, 2003 - Société générale de financement du Québec (SGF) has released its consolidated, unaudited financial results for the six‑month period ended June 30, 2003. SGF reported a net loss of $181 million for the first half of the year.
SGF’s results reflect operating losses of some $64 million from its joint ventures and subsidiaries and $28 million in losses on interests in satellite companies, in the context of difficult market conditions for these businesses. In addition, the company recorded losses of some $34 million on its venture capital investments, mainly in the high technology sector. SGF anticipates similar market conditions in the second half of the year, which will continue to affect its results for the last six months of 2003.
More than a third of the capital invested by SGF as at June 30, 2003 was in projects still in the construction or start‑up phase, which will not yield short-term returns.
Finally, as a result of less favourable market outlook for the eventual resumption of operations at Métallurgie Magnola and the write‑down taken by SGF on its investment in the ADF Group following the announcement of a planned restructuring, write‑downs and provisions of approximately $98 million were recorded.
However, SGF maintains the financial resources needed to fulfill its commitments with its partners and will continue to participate on a more selective basis in the development of new projects.
SGF has already begun to realign its organisation, rationalizing certain investments and reducing its development program. The company is also continuing the process of systematically reviewing its investment portfolio in order to implement a plan to improve profitability and realize on its mature investments.
SGF has interests in 147 companies and has over 70 international partners. Its consolidated assets total $3.1 billion. (sgfqc.com)
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Director, Communications and Public Relations
Société générale de financement du Québec