Engie net loss sharply down from 4.6 billion to 0.4 billion euros
Staff Writer |
Engie, formerly GDF Suez, eported that its net loss group share for fiscal year 2016 narrowed to 0.4 billion euros from 4.6 billion euros last year.
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The latest-quarter result was impacted by impairments being partially compensated by some non-recurring positive elements.
The year 2015 had been strongly impacted by impairments for a net amount of 6.8 billion euros.
Net recurring income group share amounted to 2.5 billion euros, down 0.1 billion euros compared to December 31st 2015.
As of December 31st, 2016 ENGIE recognized impairments weighing on 2016 net income. The impact of these impairments on the net income group share amounts to EUR - 3.8 billion.
The gross amount of these impairments, that is prior to taxes and minorities effects, was EUR 4.2 billion, of which EUR 2.5 billion on tangible, intangible, financial assets and entities accounted for using the equity method, and EUR 1.7 billion on goodwills.
These impairments mainly relate to the power production activities in merchant markets in Europe (EUR 1.9 billion) impacted by the decrease in prices, but also to the revision of the nuclear provisions in Belgium (EUR 1.0 billion) due to the change in the discount rate, and to the market environment on some of its global businesses 6 (EUR 0.6 billion).
Current operating income amounted to 6.2 billion euros, down 0.1 billion euros on a reported basis and up 1.6% on an organic basis compared to December 31st 2015.
group Ebitda amounted to 10.7 billion euros, down by 5.2% on a reported basis and 2.7% on an organic basis.
It benefited from the positive impact of the restart of the Doel 3, Tihange 2 and Doel 1 nuclear power plants in Belgium in December 2015, the first effects of the "Lean 2018" performance program, a positive temperature effect in France, and the commissioning of assets.
However, these positive impacts only partially offset the continued negative price effects, and the foreign exchange unfavorable impact, notably on the Norwegian krone, Brazilian real and pound sterling.
Revenues fell by 4.6% on a reported basis to 66.6 billion euros compared with 31st December 2015, while it was down by 4.0% on an organic basis.
Beyond an unfavourable impact of exchange rates mainly related to the pound sterling and Brazilian real, this decrease was mainly attributable to lower commodity prices which impacted LNG and gas midstream activities, gas and electricity sales businesses, exploration-production, and power generation businesses, but only partially affected the group margins.
The decrease was partially offset by the positive effect of slightly colder than average temperatures in France in 2016 compared with a very warm 2015.
The group anticipates for 2017 a net recurring income group share between 2.4 billion euros and 2.6 billion euros, in strong organic growth compared to 2016. This guidance is based on an estimated range for Ebitda of 10.7 billion euros to 11.3 billion euros, also growing strongly organically.
For fiscal year 2016, the group confirms the payment of a 1 euros per share dividend, payable in cash.
For fiscal years 2017 and 2018, the group commits to pay a 0.70 euros per share dividend per year, payable in cash. ■