PARIS (Reuters) – Engie reported higher first-quarter results on Thursday, boosted by its energy supply and risk hedging businesses, and said its performance for the whole of 2023 should be in line with the top of its forecast ranges.

Excluding nuclear in Belgium, the energy company recorded at the end of March a result before interest and taxes (Ebit) of 3.8 billion euros (+30%), a profit before interest, taxes, depreciation and amortization (Ebitda ) of 4.8 billion (+23%) and a turnover of 29.2 billion (+14.0%).

The group said in a statement that it was maintaining its annual targets “in a context of lower volatility and energy prices, as well as an uncertain macroeconomic environment”.

Engie has, however, indicated that its recurring net income group share should be in the upper half of the announced range of 3.4 to 4.0 billion euros. Ebit excluding nuclear in 2023 is also expected in the upper range of 6.6 to 7.6 billion.

The group’s quarterly results were boosted by its “Global Energy Management & Sales” (GEMS) division, which includes energy procurement, risk management and asset optimization activities, including Ebit jumped to 1.6 billion in the first quarter of 2023 from 980 million a year earlier.

Engie however underlined that the contribution of GEMS for the next quarters should gradually decrease “due to the combination of non-replicable impacts as well as the contribution of contracts signed in 2022 (…), which should normalize in the future. “.

The group also said that strikes in France against pension reform had cost it 60 million euros in the first quarter.

Regarding nuclear power in Belgium, he hopes to conclude a definitive agreement with the government by June 30 to extend the operating life of the Doel 4 and Tihange 3 reactors.

(Report Benjamin Mallet and America Hernandez; edited by Nicolas Delame)

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