Despite a slight dip in earnings, Engie, the French multinational power utility, remains confident in its outlook. In the first quarter of this year, Engie reported earnings before interest, taxes, depreciation, and amortization of 5.4 billion euros ($5.87 billion), a 0.7% decrease compared to the same period last year on an organic basis. However, the company’s renewables and flexible generation segments helped offset the decline.
The recent decline in profits for the company can be attributed to significant drops in its networks and global energy management and sales divisions. However, this decrease was partially offset by increased earnings from renewables, flexible generations, and energy solutions. Additionally, the company’s EBIT, excluding earnings from nuclear power, fell by 3.7% to EUR3.7 billion.
Engie, one of Europe’s largest energy companies, reported a 25% drop in revenue to EUR22.0 billion. However, the company saw an increase in cash flow from operations, which rose by 36% to EUR5.1 billion. This improvement was attributed to better management of working capital.
Despite the challenging market conditions, Engie has maintained its outlook for the year. The company expects its EBIT (earnings before interest and taxes) excluding nuclear to range between EUR7.5 billion and EUR8.5 billion. Additionally, it aims to achieve net recurring income of between EUR4.2 billion and EUR4.8 billion.
Overall, Engie remains confident in its ability to navigate the current economic environment and deliver solid financial results.