Engie, the French power utility, has announced an increase in its full-year guidance due to its strong performance and reduced risks as the year draws to a close.
Revised Net Income and EBIT Projections
The company now expects its recurring net income for the year to be within the range of 5.1 billion euros to 5.7 billion euros ($5.47 billion-$6.11 billion), surpassing its previous forecast of EUR4.7 billion to EUR5.3 billion.
Engie also revised its projections for non-nuclear earnings before interest and taxes (EBIT), expecting it to be between EUR9 billion and EUR10 billion, compared to the previous estimate of EUR8.5 billion to EUR9.5 billion.
Solid Financial Performance
In terms of financial performance, Engie reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR11.9 billion, showing an increase from EUR10.67 billion during the same period last year. However, revenue decreased to EUR61.8 billion, representing a 10.2% organic decline compared to the previous year.
Growth in Non-Nuclear EBIT
Engie experienced growth in its non-nuclear EBIT, which rose to EUR8 billion from EUR6.3 billion. This increase was primarily driven by the strong performance of its global energy management and sales units, as well as its renewable energy sector.
Commitment to Dividend Policy
Engie has reaffirmed its commitment to its dividend policy by maintaining a payout ratio of 65% to 75% based on net recurring income. Additionally, it has set a floor of EUR0.65 per share for the period spanning from 2023 to 2025.