CAC 40 Earnings: Engie Raises Annual Outlook

The CAC 40-listed energy group Engie SA (FR:ENGI) raised its annual outlook after delivering a strong operational performance so far in 2023. The company upgraded its net recurring income group share (NRIgs) guidance to the range of €5.1 to €5.7 billion in 2023, up from the previously stated range of €4.7 to €5.3 billion. EBIT, excluding nuclear, is now anticipated to fall within the indicative range of €9.0 to €10.0 billion compared to the previous range of €8.5 to €9.5 billion.

During its first nine months of 2023, the company demonstrated robust financial performance and executed strategic acquisitions in the ever-evolving energy markets. The earnings, excluding nuclear, increased by 27.4% to €8 billion, and EBITDA grew by 12.3% to €11.9 billion.

Key Business Milestones

Engie achieved a historic level of renewable assets of 7.6 GW (gigawatts) in the construction phase by the end of September. The company is persistently expanding its renewable energy portfolio and aiming to achieve an average annual capacity addition of 4 GW in renewables between 2023 and 2025.

In Q3, the company acquired Broad Reach Power (BRP), a U.S.-based company with expertise in battery storage. This transaction will enhance ENGIE’s role as a frontrunner in the U.S. energy transition, bolstering its existing strong presence in the country.

Moreover, the company also expanded its footprint in the European biomethane sector by acquiring Ixora Energy Ltd., a prominent biomethane producer in the UK. This acquisition resulted in the addition of three additional production units to ENGIE’s portfolio.

Is ENGIE Stock a Good Buy?

According to TipRanks, ENGI stock has received a Moderate Buy rating based on two Buy and two Hold recommendations from analysts. The Engie share price target of €17.75 offers a growth potential of 18% in the share price.

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