Engie to Execute Disposals, Accelerate Investments Amid New Strategy -- Update
By Cecilia Butini
French power utility company Engie SA said Tuesday that it would
execute disposals and accelerate growth investments amid a strategy
The company said it would implement disposals for between 9
billion euros ($10.94 billion) and EUR10 billion and that it plans
to invest between EUR15 billion and EUR16 billion of growth capex
in the period between 2021 and 2023, 55% of which has already been
Engie added that it expects a new performance plan to contribute
EUR600 million in earnings before interest and taxes during the
period 2021 to 2023.
A new business named Bright is on track to being managed
independently within the company by July 1, Engie said, adding that
it doesn't assume any contribution to earnings in the mid-term.
For the quarter ending March 31, Engie said its earnings and
revenue increase slightly on-year. Earnings before interest and
taxes were EUR2.07 billion in the period, up from EUR1.91 billion
the previous year, while earnings before interest, taxes,
depreciation and amortization came in at EUR3.22 billion, compared
with EUR3.06 billion the year prior. Revenue rose to EUR16.87
billion from EUR16.49 the year prior, Engie said.
Looking ahead, the company expects net recurring income to reach
a range between EUR2.7 billion and EUR2.9 billion in 2023, based on
an indicative Ebitda range of EUR10.3 billion and EUR10.7 billion,
and an EBIT range of EUR5.7 billion to EUR6.1 billion.
Engie said the board has reaffirmed the group's payout policy of
65% to 75% of net recurring income. It added that it expects the
dividend per share to grow driven by earnings growth, and that it
is introducing a dividend floor of EUR0.65 per share for the period
2021 to 2023.
Write to Cecilia Butini at firstname.lastname@example.org
(END) Dow Jones Newswires
May 18, 2021 03:38 ET (07:38 GMT)
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