Engie returns to profit in 2017, raises 2018 dividend

Solairedirect solar farm in France. Source: Engie

March 9 (Renewables Now) - French clean energy group Engie SA (EPA:ENGI) on Thursday reported 2017 financial results that are in line with its objectives, including a return to profitability, and said that for 2018 it expects sustained organic growth.

The company, which operates renewable energy and natural gas-fired power plants, has turned to a net profit of EUR 1.4 billion (USD 1.7bn) from a loss of EUR 400 million a year back, because of lower impairments compared to 2016.

The table below gives more details about the company’s 2017 performance.

In EUR 2017 2016 y/y change (gross) y/y change (organic)
Revenues 65bn 64.84bn +0.3% +1.7%
EBITDA 9.3bn 9.49bn -1.8% +5.3%
Net recurring income, Group share including E&P 2.66bn 2.48bn +3.4% N/A
Net profit (loss), Group share 1.42bn (415m) -- --
Cash flow from operations 8.31bn 9.58bn -1.3bn --
Net financial debt 22.5bn 24.8bn -2.3bn --

After going through a “vigorous” strategic repositioning, the company says it now has a less risky profile, with 89% of EBITDA being contracted or regulated, as well as a cleaner and more profitable portfolio of activities.

For 2018, Engie forecasts a net recurring income, Group share, excluding E&P and LNG, of between EUR 2.45 billion and EUR 2.65 billion. That is why the company has decided to announce a 7.1% higher dividend for fiscal year 2018, at EUR 0.75 per share.

The 2018 guidance is based on an indicative EBITDA range of EUR 9.3 billion-9.7 billion, the company noted.

(EUR 1.0 = USD 1.229)

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