Engie France reports marginal increase in first-quarter profits
The French utility Engie announced a marginal increase in earnings for the first quarter on Thursday. This was due to weaker hydropower conditions as well as lower electricity prices.
The company, Europe’s largest gas network operator said that its earnings before interest, tax and nuclear power (EBIT) rose by 0.5% on an annual basis to 3.7 billion euro ($4.14 billion).
The price of European gas and power has continued to drop after a peak in mid-February. This is due to concerns about a slower growth economy because of global trade tensions.
This led to a decline of 15% in EBIT for Engie's renewables division and its flex power division, as well as a lower hydropower production due to low rainfall.
The company's networks activity, which includes gas transmission grids, saw its earnings increase by 63%, thanks to increased European tariffs, and higher volumes in France, as the colder winter drove up demand for gas.
Gas tariffs are calculated based on a cost estimate of natural gas delivered by suppliers to residential customers.
Engie has also confirmed its forecast of net recurring revenue in 2025 between 4.4 and 5 billion euros. $1 = 0.8932 euro (Reporting and editing by Christopher Cushing, Sonia Cheema).
(source: Reuters)
