By Adam Whittaker
Shares in Engie fell after the French power utility's first-half earnings were dragged down by lower energy prices and market volatility.
In morning European trade, shares were down 3.8% to 18.88 euros, but remain up 23% over the year to date.
Engie said Friday that earnings before interest and taxes excluding nuclear power, a key company metric, fell 6.4% on an organic basis to 5.1 billion euros ($5.82 billion).
Earnings were slightly light but this was expected, J.P. Morgan analysts wrote in a note to clients. Normalizing energy prices and macroeconomic volatility dragged on its results but much of this was well understood by the market in advance, they added.
Engie said it took a hit of nearly 100 million euros hit from negative exchange-rate changes, driven mainly by the depreciation of the Brazilian real. Earnings were also hurt by the loss of income following the sale of stakes in assets in Morocco, Singapore and Pakistan. However, earnings were helped by higher temperatures in France, the company said.
Earnings before interest, taxes, depreciation and amortization fell 5.5% on an organic basis to 8.3 billion euros, while revenue rose 2.9% on an organic basis to 38.1 billion euros.
For 2025, the company continues to expect recurring net profit between 4.4 billion and 5 billion euros and EBIT excluding earnings from nuclear power between 8 billion and 9 billion euros.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
08-01-25 0420ET
