ENGIE financial results as of June 30, 2019

Paris, July 30th 2019

The Group’s robust financial structure has been reaffirmed by S&P, which confirmed its A- rating in April, and by Fitch, which confirmed its A rating in June, both maintaining their stable outlook. In June, as announced, Moody’s downgraded its rating from A2 to A3 following the adoption of the Loi PACTE in France which has prompted a reappraisal of its one notch uplift for government support.

ENGIE continued to pursue its strategy, focused on zero-carbon transition leadership in the first half of 2019, with strategic progress made particularly in Renewables, complemented by the TAG acquisition in Networks. Management team expects growth to further accelerate over the second half, driven by improving underlying business performance across the main activities of the Group.

  • Energy management results were strong, driven by gas contract renegotiations and international activities;
  • Nuclear was driven by achieved price improvements and higher availability following the restart of all seven Belgian production units;
  • Client Solutions results improved significantly on an underlying basis performance on a sequential basis from the first to the second quarter but remained atypical due to dynamics in certain markets. SUEZ one-offs additionally contributed;
  • Renewables were impacted by lower hydro power production in France partly offset by commissioning of wind capacities;
  • Thermal was affected by the disposal of Glow, partly offset by positive Power Purchase Agreement (PPA) effects in Latin America and positive contribution from gas power plants in Australia and Europe;
  • Supply activities continued to suffer mainly from margin contractions in French retail;
  • Networks were impacted by several headwinds, particularly in gas transmission in France with the end of subscriptions on the North-South pipe and tariff linearization.

 

«The Group results improved, thanks to a solid second quarter mainly driven by Energy Management, Nuclear, lower than average temperatures and improved Client Solutions performance on a sequential basis from the first to the second quarter.
We reaffirm our 2019 guidance of net recurring income (Group share) between EUR 2.5 billion to EUR 2.7 billion, based on the positive momentum built over the second quarter and our visibility for rest of the year.
».

Isabelle Kocher, CEO ENGIE Group

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