French energy giant Engie has increased its profit forecast for 2024 after a strong performance in the first half of this year. The company, which operates Belgium's five operational nuclear plants, recorded a net income of €1.9 billion, thanks largely to normalising market conditions and growth in renewable activities.
The firm now projects a recurring net income for 2024 between €5.0 and €5.6 billion – up from the previously announced range of €4.2 and €4.8 billion. Non-nuclear operating profit is forecast in an indicative range of €8.2 to €9.2 billion, an increase from the prior estimate of €7.5 to €8.5 billion.
“Engie had a very good first half which enables us to raise the group’s guidance for 2024,” said CEO Catherine MacGregor, in the company’s statement.
Renewable activities also made significant advances, with over 1GW installed during this period and nearly 7GW under construction as of the end of June. This strong financial performance demonstrates the power of Engie’s integrated model. Notably, more than 118 MW of renewable energy will be supplied to Google’s digital infrastructure portfolio, located in Belgium
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Non-nuclear operating profit reported at €5.6 billion in H1, declined by 16.2%. The comparison base from H1 2023 was particularly high as it was a period of extremely high and volatile pricing, explained MacGregor during a telephone press conference presenting the earnings.
The earnings before interest and taxes from nuclear activities amounted to €770 million in H1 2024, up from €239 million a year earlier. This increase is mainly due to the absence of an inframarginal tax in Belgium for the first six months of the year since it was discontinued in June 2023.
As for the extension of the lifetime of the Doel 4 and Tihange 3 nuclear power stations, an agreement signed by the Belgian Government last year means that Engie still plans to complete this extension by the end of the year.
Meanwhile, the European Commission has launched an investigation into state aid that Belgium intends to grant to extend the lifetime of these reactors. According to Engie and the outgoing energy minister, Tinne Van der Straeten, this is a normal step in the process.
