Engie, the French energy giant, reported a 3.2% fall in operating profit (Ebit) excluding nuclear activities, to 3.7 billion euros. This decline is attributed to the normalization of market conditions and lower energy prices, following exceptional years of increases due to the war in Ukraine. Pierre-François Riolacci, Executive Vice President Finance, reported that sales fell by 24.6% to 22 billion euros, mainly due to market volatility and milder weather in Europe, reducing heating demand.
Contrasting sector performances
Despite this overall decline, Engie recorded an 11.5% increase in operating income in the renewable energies sector and a 17.6% increase in its FlexGen division, which includes dams, electrical storage and gas-fired power plants. However, the energy supply and trading sectors saw significant declines of 18.3% and 9.2% respectively.
Strategy and future objectives
Engie remains optimistic about its outlook for 2024, targeting recurring net income attributable to the Group of between 4.2 and 4.8 billion euros. The company continues to disengage from nuclear power and coal to focus on renewable energies and battery power storage. Catherine MacGregor, Managing Director, underlined the continuation of their strategic plan, with 7 GW of renewable capacity under construction and a target of 4 GW of additional capacity per year until 2025.
Energy transition and gas retention
Engie, like its competitor TotalEnergies, advocates maintaining gas as a transitional energy source, while seeking to green this source with biomethane. The company is also committed to developing infrastructures for solar and wind power, consolidating its position in the renewable energies sector.
Despite lower first-quarter results, Engie is maintaining its targets for 2024, relying on a strategy focused on renewable energies and electricity storage. The normalization of energy markets, after a period of extreme volatility, presents both challenges and opportunities for the Group.
