- Current operating income : a resilient net recurring income despite the drop in oil / gas price thanks to the implementation of a targeted “Quick Reaction Plan”
Given the recent major drop in oil and gas price, which has a significant impact, in the short term, on the Group’s businesses (estimated at around EUR – 900 million on Ebitda 2015 and EUR – 350 million on Net recurring income, Group share, based on forward prices as of December 31st, 2014), the Group has decided to launch a quick operational reaction plan in addition to Perform 2015, focused on targeted reductions in opex (EUR 250 million impact on Ebitda 2015) combined with a shift of some growth capex (EUR 2 billion over 2015-2016).
This plan enables the Group to announce for 2015 a Net recurring income, Group share3 between EUR 3.0 and 3.3 billion, at average weather in France, in line with the figure published for 2014. This guidance is based on estimates for Ebitda and current operating income1 of, respectively, EUR 11.7 to 12.3 billion and EUR 6.8 to 7.4 billion.
In addition, given its medium term growth perspectives and cash generation for 2015-2016, the Group reaffirms its capital allocation policy for the period 2014-2016 as follows:
- net capex between EUR 6 and 7 billion per year on average,
- net debt/Ebitda ratio below or equal to 2.5x and ” A category credit rating,
- and a stable dividend policy with a pay-out ratio of 65-75 % and a minimum of EUR 1 per share, payable in cash.
 targets assume average weather conditions in France, full pass through of supply costs in French regulated gas tariffs, restart of Doel 3 and Tihange 2 as of July 1st, 2015, no significant regulatory and macro-economic changes, commodity price assumptions based on market conditions as of December 31st, 2014 for the non-hedged part of the production, and average foreign exchange rates as follows for 2015 : €/$ : 1.22, €/BRL : 3.23
 net capex = gross capex – disposals (cash and net debt impact)
 based on net recurring income, Group share
 after share in net income of entities accounted for using the equity method
 including interim dividend of €0.50/share paid in October 2014. Subject to approval at the Annual General Shareholders’ Meeting on April 28, 2015
Source:: 2014 annual results: all financial targets achieved