Engie returns to green in the first half and raises its forecasts

The group published on Friday a net profit of 1,9 billion euros for the first six months of the year, compared to a loss of 800 million during the same period a year ago. Turnover fell by 20,2% to 37,5 billion euros following the lull in gas and electricity prices.

“In a context of a return to normal in market conditions, Engie once again achieved a very good first half which allows us to raise the + guidance +” for the year 2024, declared Catherine MacGregor, its general director, quoted in the group's press release.

“Renewable activities also progressed significantly, with more than 1 GW installed over the period and almost 7 GW under construction at the end of June,” she added.

The recurring net profit, an indicator favored by the group, fell by 6,9%, to 3,8 billion euros, during the first six months, but Engie raised its forecast for 2024. It is now targeting "between 5,0 .5,6 and 4,2 billion euros” for the whole year, compared to a range of 4,8 to XNUMX billion euros until then.

It also estimates an operating profit (Ebit) excluding nuclear located in an indicative range of 8,2 to 9,2 billion euros, compared to 7,5 to 8,5 billion euros previously.

Operating income excluding nuclear power stood at 5,6 billion in the first half, down 16,2%, but the 2023 basis of comparison "was particularly high since we found ourselves at the time in an environment of very high and very volatile prices,” recalled Catherine MacGregor.

Engie also says it is “confident in achieving its objective of increasing renewable capacity by 4 GW on average each year until 2025”.

Falling prices and volatility

“We delivered a very strong performance in the first half, both financially and operationally, using our flexibility to adapt and benefit from rapidly changing market conditions,” emphasized Catherine MacGregor during the analyst conference. .

“The fact that, despite falling market prices and volatility, we managed to raise our forecasts for the whole year (…) demonstrates that our integrated and flexible business model is indeed very well suited to the energy transition", she said. “We are raising our forecasts in a much more demanding context, and I would say despite” this environment.

Hailed on the Paris Stock Exchange, the stock rose 2,55% to 14,92 euros at 12:07 p.m. (10:07 GMT) in a market down 0,96%.

The energy company's activity was marked by the addition of 800 MW of batteries in the United States with the "successful" integration of the American company Broad Reach Power, specializing in battery storage.

On renewables, it benefited from good hydrology in Europe, in France and Portugal in particular, with significantly higher volumes of hydroelectricity, of around 30%, which more than offset the drop in prices. Operating profit from renewables increased organically (on a comparable basis, Editor's note) by 5,7%, also thanks to new capacities put into service in Latin America, the United States and Europe.

The group, however, suffered from a reduction in volumes distributed in France due to a mild climate and lower gas consumption.

“Compared to normal”, it indicates in its press release, “the normative temperature effect is negative by 104 million euros, generating a cumulative negative variation of 69 million euros compared to the first half of 2023 in Infrastructure, Retail and GEMS activities" (Global Energy Management & Sales), dedicated to businesses and large energy consumers (gas, electricity, etc.).