Engie’s first quarter profit dips

Engie's first quarter profit dipsImage courtesy of Engie

French utility and LNG player Engie, reported a decrease in profit for the first quarter 2017 “impacted by unfavorable scope effects.”

The earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 5.9 percent from €3.5 billion in the first quarter of 2016 to €3.3 billion in the quarter under review.

The drop is attributed to a decrease of hydro production in France, by hydrocarbon production and by the shutdown of the Tihange 1 nuclear power plant since September 2016, according to the company’s quarterly report.

“These effects are partially compensated by the sustained performance of the group’s growth engines, by the activities of thermal gas generation activities in Europe and by a favorable foreign exchange effect,” the report reads.

Engie’s current operating income dropped 8.5 percent from €2.4 billion in Q1 2016 to €2.2 billion in the first three months of 2017.

Revenues as of March 31, 2017 were at €19.5 billion, up 3.2 percent from €18.9 billion in the corresponding quarter of 2916.

This growth is notably due to the increase of gas purchase/sale activities, to the commissioning of new assets in Latin America (Mexico and Peru) and to tariff revisions for gas infrastructures. It is also driven by the performance of thermal gas generation activities in Europe as well as by a slightly favorable temperature impact, temperatures in France being less warm over the first three months of 2017 compared to the same period last year, the report says.

EBITDA for the Global Energy Management and LNG segment dropped sharply down compared to end of March 2016, mainly due to negative price effects and to difficult gas sourcing conditions in the South of France in January 2017 during the cold snap, Engie said.

Revenues for the segment GEM and LNG increased by 19.1 percent mainly due to higher volumes of commodities sold in Europe compared to last year.

Share this article

Follow LNG World News

Posted on May 5, 2017 with tags .


<< Jan 2018 >>
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Singapore Maritime Technology Conference and Exhibition (SMTC) 2018

The 3rd Singapore Maritime Technology Conference and Exhibition (SMTC) 2018…

read more >

CWC Japan LNG & Gas Summit

The inaugural CWC Japan LNG & Gas Summit, with participation and support from METI, JERA, Tokyo Gas and IEEJ, is the dedicated platform for international suppliers…

read more >

Asia Pacific Maritime and Offshore Exhibition 2018

7 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia…

read more >

CWC 2nd Papua New Guinea Petroleum & Energy Summit

The 2nd CWC Papua New Guinea Petroleum and Energy Summit is held under the patronage of the Prime Minister of Papua New Guinea…

read more >