ENGIE (ENGI) Q2 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results in a normalized market, leading to upgraded full-year earnings guidance and robust progress on ESG targets.

• Achieved significant capacity additions in renewables and battery storage, including 1 GW new renewables and 800 MW BESS in the US; 6.9 GW under construction and a 95 GW pipeline at end-June.

• Continued strategic shift towards renewables, storage, and flexible generation, with progress on coal exit in Chile and greenhouse gas emissions reduction.

• Managed regulatory and political developments, including Belgian nuclear extension approval and ongoing EU review.

• Employee share ownership plan expanded, with 35% of employees subscribing.

Financial highlights

• EBIT excluding nuclear: €5.6bn, down 16% year-on-year; EBITDA (ex-nuclear): €7.8bn, down 11.2%; revenues: €37.5bn, down 20.2%.

• Net recurring income group share: €3.8bn; reported net income: €1.9bn, up from a €0.8bn loss in H1 2023.

• Cash flow from operations: €8.9bn; growth capex: €4.1bn, up 78% year-over-year.

• Net financial debt: €30.2bn (up €0.7bn vs Dec 2023); economic net debt: €45.8bn (down €0.8bn); net financial debt/EBITDA: 2.07x; economic net debt/EBITDA: 3.1x.

• Average cost of gross debt: 4.75%; liquidity: €26.6bn, including €18.1bn cash.

Outlook and guidance

• Upgraded 2024 net recurring income group share guidance to €5.0bn–€5.6bn (from €4.2bn–€4.8bn); EBIT (ex-nuclear): €8.2bn–€9.2bn.

• Dividend payout ratio reaffirmed at 65–75% of NRIgs, with a floor of €0.65/share for 2024–2026.

• Economic net debt/EBITDA targeted at ≤4.0x long-term; strong investment grade rating maintained.

• Guidance includes contingencies for tax and regulatory risks; rating and dividend guidance unchanged.