French utility Engie reported an 18% rise in third-quarter earnings, driven by robust renewable energy and hydropower output, alongside increased profits from investments and infrastructure.
The company posted earnings before interest and tax (EBIT) of 1.47 billion euros ($1.58 billion) for the quarter, excluding nuclear.
The renewables sector, which includes hydro, wind, and solar power, was the key contributor to Engie's profitability. It reported a 48% year-on-year increase in earnings, reaching 479 million euros.
The company's hydro output was particularly strong, bolstered by favorable conditions in France and Portugal, while its Flex Gen unit also saw positive results. Flex Gen utilizes energy storage in batteries located in Chile and Australia, storing power during low-price periods and discharging it during peak hours.
Flex Gen posted a profit of 358 million euros in Q3, though Engie's CFO Pierre-Francois Riolacci cautioned that the fourth quarter will likely see significantly lower profits due to reduced hedge prices.
Engie's performance was met with optimism from analysts, with JP Morgan highlighting the company's strong execution and risk management, suggesting it will likely meet or exceed expectations in the future. Despite some uncertainties in the U.S. market due to potential offshore wind project moratoriums under the administration of President Donald Trump, Engie remains confident in the strength of renewable energy demand. CEO Catherine MacGregor expressed her optimism, noting that “the market wins, the market prevails” and emphasized strong demand for Engie's projects.
The company also announced that its board had proposed the reappointment of Catherine MacGregor as CEO in September.
