Engie’s trading quintuples its profit to EUR 1bn

The “extreme market conditions” of the first six months of the year, marked by “new successive high points [des prix de l’énergie] as well as very high volatility and an increase in geographical spreads” allowed trading activities to make an “unprecedented contribution” to the results, explains the company in its latest financial report.

Net profit group share of Engie also more than doubled thanks to soaring commodity prices, supported by a shortage of supply linked to the war in Ukraine. It stood at EUR 5 billion, against EUR 2.3 billion a year earlier.

Increase in gas sales
Engie’s energy supply activity (mainly gas) also more than doubled its Ebit in the first half to reach EUR 424 million.

This is mainly due to high prices, although an increase in sales volumes contributed to this result, according to the report.

As for the nuclear division, it multiplied its Ebit by almost five in one year to bring it to EUR 1.09bn. This “exceptional performance” is explained by “much higher prices captured”, since they jumped by EUR 48.50 on average compared to the first half of 2021 to stand at EUR 95.60/MWh.

This offset the decline in the company’s nuclear fleet availability in the January-June period, which fell 7 percentage points to 84.9% due to a “higher level of outages plans”, in particular for Tihange 1 (962 MW). Nuclear production stood at 22.2 TWh for the half-year, down 1.3 TWh over one year.

The Belgian subsidiary of the energy company, Electrabel, operates seven reactors with a total capacity of 5.9 GW with the Doel and Tihange power stations. Engie also holds stakes in the French nuclear power plants of Tricastin and Chooz.

Engie’s hydroelectric production in France also fell by 1.5 TWh, to 7.1 TWh for the first half of the year, in a context of persistent drought.

Increase in coverage
In addition, Engie had hedged 92% of its nuclear and hydroelectric production planned this year in France and Belgium at EUR 74/MWh at the end of June, up 6 percentage points and EUR 7 compared to March 31, a- she clarified. 2021 production had been hedged at EUR 59/MWh.

Prices for 2023 and 2024 have also increased by EUR 16 and EUR 23, respectively, to reach EUR 70/MWh and EUR 77/MWh, with 69% of production forecast for next year and 37% of that for 2024 already sold.

French spot electricity prices average EUR 253.20/MWh this year, compared to EUR 109/MWh last year and EUR 32/MWh in 2020, while contracts for 2023 and 2024 are are currently trading around EUR 500/MWh and EUR 255/MWh, respectively, on the EEX exchange.

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