Engie updates its forecast for the whole of the year on the increase in high electricity prices

“Engie delivered in unprecedented market conditions,” chief executive Catherine MacGregor said in a statement.

The company has benefited from soaring electricity prices as the war in Ukraine has highlighted Europe’s dependence on Russian gas, prompting the bloc to seek sources of electricity. alternative energy.

Engie’s earnings before interest and tax (EBIT) for the nine months to September 30 were €7.3 billion ($7.32 billion), up 79.3 billion organically. % compared to the previous year.

The gas and electricity supplier, which has taken measures to reduce its direct exposure to the risk of a Russian gas supply disruption, has raised its annual target of a net recurring result group share of between 4.9 and 5.5 billion euros.

Engie also said it expects earnings before interest, tax, depreciation and amortization (EBITDA) of between 13.2 and 14.2 billion euros and an EBIT of 8.5 to 9.5 billion.

Chief Financial Officer Pierre-Francois Riolacci said the annual forecast now included a few hundred million euros in costs related to a European revenue cap aimed at tackling high electricity prices for consumers.

He said it was too early to estimate the cost of this measure next year, but flagged the amounts were potentially large.

Engie confirmed that for this winter, it had reduced exposure to volumes previously purchased from Russia’s Gazprom.

For the winter of 2023-2024, he said he was still confident that additional volumes contracted via new sources of supply, including liquefied natural gas (LNG), would help replace Russian volume requirements.

The company announced that it would grant its employees around the world an exceptional bonus of 1,500 euros each.

($1 = 0.9971 euros)

(Reporting by Juliette Portala, editing by Shri Navaratnam and Jane Merriman)

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