Engie has pointed towards solid organic growth in its renewables and networks divisions as the French energy major continues to reap the dividends of a strategic redirection.
Revenues for the first half of 2018, reported today, came in at €30.2 billion (£25.9 billion), which, while predominantly flat year-on-year, contributed towards a 6.2% surge in organic earnings before interest, tax, depreciation and amortisation (EBITDA) to €5.1 billion.
This, Engie said, was predominantly attributable to a “sharp” increase in renewables turnover which helped offset unplanned outages at nuclear assets in Belgium.
In a significant turnaround in its activities, Engie disposed of more than €13 billion worth of assets, including its liquefied natural gas division and UK-based thermal generators, and invested almost €14 billion in clean energy companies.
Earlier this year the company reflected on what it termed a “vigorous strategic repositioning” that occurred throughout 2017 as it returned to growth. Its cleaner, more profitable offering of energy services contributed towards 1.7% organic growth in 2017 with revenues reaching €65 billion (£57.9 billion).
And this growth has continued into 2018, with Engie pointing towards around 800MW of wind and solar project wins in both the US and its native France as a major contributing factor towards its continuing growth. Renewable generation, particularly hydropower in France and Brazil, were noted as having enjoyed particularly profitable starts to the year.
Isabelle Kocher, chief executive at Engie, said that its teams would continue its “strategic repositioning” over the course of 2018 to provide “a more harmonious progress” to the firm’s activities.
Major European utilities and energy companies have been queuing up to reposition themselves alongside a wider transition in the energy sector. Italy’s Enel has adopted cleaner generation while also bolstering its services arm with the acquisition of Enernoc, while the proposed RWE/E.On asset exchange was designed to put both “at the heart of the energy transition”.
Last month, Current± examined the recent spate of oil and has major to plot a course for renewables – and solar in particular – in a Long Read article which can be read in full here.