Earnings Alerts

Engie SA (ENGI) Earnings: 1Q Ebit Drops Slightly As Revenue Dips, Maintains Strong Dividend Policy Amid Forecasted Increase in Net Income

  • Engie’s Ebit for 1Q was EU4.17B, a decrease of 1.2% y/y
  • Revenue was reported as EU22.02B, which indicates a decrease by 25% y/y
  • Ebitda held steady at EU5.4B in comparison to its previous figure y/y
  • Ebit, excluding nuclear, fell by 3.2% y/y to settle at EU3.71B
  • Organic revenue decreased by 24.9%
  • Cash flow from operating activities increased by 34% y/y, totalling to EU5.1B
  • Net Debt for the year amounts to EU27.6B
  • The company forecasts an Ebit excluding nuclear of EU7.5B to EU8.5B
  • Recurring net income is forecasted to lie between EU4.2B and EU4.8B. The estimate stands at EU4.28B
  • Engie confirms its dividend policy, setting a payout ratio of 65% to 75% based on the net recurring income of the group. Furthermore, this includes a minimum dividend of €0.65 per share for the period of 2024 to 2026
  • The company is devoted to maintaining a “strong investment grade” credit rating and aims to maintain a ratio that is below or equal to 4.0x for economic net debt to Ebitda over a long-term period.

Engie SA on Smartkarma

Engie SA, a French energy company, is attracting attention from independent analysts on Smartkarma for its potential impact on the ES50 Index. Janaghan Jeyakumar, CFA, in a series of recent insights, highlights Engie’s positioning as a top potential ADD for the index review in September 2024. If Engie manages to outperform its peers by 20%, it could trigger a substantial index buying of US$1.1 billion, a significant event given the high tracking and influence of the ES50 Index in Europe.

Janaghan Jeyakumar, CFA, further emphasizes Engie’s status as a potential top ADD, with the possibility of a US$1.2 billion index flow if the company gains 12% compared to its industry counterparts. These analyses point to the significant role Engie could play in the upcoming index review and the potential impact on the European market’s index flow dynamics. For more detailed insights and analysis by Janaghan Jeyakumar, CFA, visit Smartkarma for a deeper understanding of Engie’s position in the ES50 Index race.


A look at Engie SA Smart Scores

FactorScoreMagnitude
Value3
Dividend5
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Engie SA, a global provider of energy and environmental services, is positioned with a mixed outlook in the long term according to Smartkarma Smart Scores. With a strong emphasis on dividend and decent momentum, Engie scores well in providing returns to its investors and maintaining a stable growth trajectory. However, the company’s value and resilience scores indicate some areas of concern, suggesting a need for strategic adjustments to enhance its competitive positioning in the market.

Engie’s comprehensive offerings in electricity, gas, and energy services worldwide showcase its diverse portfolio. While the company excels in its dividend payouts and shows promising growth potential, challenges in value and resilience aspects point towards the necessity of proactive measures to solidify its market presence and weather potential fluctuations. Monitoring Engie’s strategic decisions and operational efficiency will be crucial in navigating the evolving energy landscape.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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