First Half Results 2018

Paris, 27th july 2018

The results for the 2018 first half are driven by solid organic growth based in good part on renewable activities and networks. Performance of client solutions is mixed, with a positive contribution from B2B and B2T activities offsetting the impacts caused by lower margins in some B2C activities.

These effects, combined with the very good performance of merchant activities, mainly due to excellent results from the energy management business in the first quarter, and with the predicted growth in the second half of the year, are expected to offset the anticipated adverse impacts of the unplanned maintenance at certain Belgian nuclear units.

Thus, ENGIE confirms its 2018 full-year guidance.

Tableau

The Group pursues its strategic repositioning aimed at reducing its carbon footprint and exposure to commodities prices in order to accelerate its development in low CO2 power generation, networks and client solutions.

Following the disposal of its stake in Glow in Asia-Pacific, announced in June, the Group's coal-fired electricity generation capacity should represent only 5% of its total installed capacity.
During the first half of the year, ENGIE also continued to develop through dynamic organic growth and through targeted external growth, notably with renewables projects won through competitive offerings representing more than 800 MW and with acquisitions of major wind and solar developers made in the United States and in France.

Net debt has been significantly reduced and the Group's financial structure remains very solid. This is confirmed by the recent upgrade of S&P's outlook from negative to stable, with a maintained A- rating. Also, Moody’s confirmed its A2 rating with a stable outlook.

At the presentation of the 2017 results, ENGIE announced a new dividend policy, with a 7.1% higher dividend of EUR 0.75 per share in cash for fiscal year 2018. An interim dividend of EUR 0.37 will be paid for fiscal year 2018 on October 12, 2018.

Upon the presentation of the 2018 first half financial results, Isabelle Kocher, ENGIE CEO, stated: 

“The return to organic growth observed in 2017 is confirmed in the 2018 first half, supported by the continued development in the majority of our activities. In low CO2 power generation, the growth in the renewable projects pipeline was sustained, mainly as a result of winning bids and targeted acquisitions in different countries. ENGIE also benefits from a higher regulated asset base in networks following the regulation of gas storage activities in France, effective since the 2018 first half. In addition, commercial developments have been confirmed in the client solutions activities: ENGIE realized numerous opportunities in services with 11% revenue growth and 13% increase in installation and engineering backlog and currently has a global portfolio of 24 million contracts for the supply of services and the sale of energy to individuals, in particular with a leading position on gas and electricity market offers in France. Finally, the daily commitment of our teams allows us to continue our strategic repositioning and to confirm all objectives for this year, in the service of a more harmonious progress”.

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