Tear Sheet: Engie

Engie reported strong first-quarter 2023 performance, with locked-in prices from 2022 and over-performance from energy management activities, while asset optimization and risk management supported its other business lines. This follows extraordinary 2022 EBITDA growth of 27% year on year to €13.7 billion, equivalent to €12.9 billion adjusted EBITDA, thanks to an exceptional contribution from its trading and generation earnings (renewable ramp up, nuclear production, and high thermal spread). We expect S&P Global Ratings-adjusted EBITDA will decline to about €12.6 billion in 2023, driven by the expected reduction in energy prices, a lower clean spark spread (net revenue from selling power), and reduced volatility. These factors should normalize global energy management and sales (GEMS) and conventional generation performance; combined with inframarginal

...May 12, 2023 S&P Global Ratings expects Engie S.A.'s EBITDA to normalize in 2023 after exceptional performance in 2022. Engie reported strong first-quarter 2023 performance, with locked-in prices from 2022 and over-performance from energy management activities, while asset optimization and risk management supported its other business lines. This follows extraordinary 2022 EBITDA growth of 27% year on year to 13.7 billion, equivalent to 12.9 billion adjusted EBITDA, thanks to an exceptional contribution from its trading and generation earnings (renewable ramp up, nuclear production, and high thermal spread). We expect S&P Global Ratings-adjusted EBITDA will decline to about 12.6 billion in 2023, driven by the expected reduction in energy prices, a lower clean spark spread (net revenue from selling power), and reduced volatility. These factors should normalize global energy management and sales (GEMS) and conventional generation performance; combined with inframarginal price caps and solidarity...

Full Report