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France's Engie books 3.8 bln euros in impairments due to low prices
March 2, 2017 / 7:02 AM / 9 months ago

France's Engie books 3.8 bln euros in impairments due to low prices

PARIS, March 2 (Reuters) - French gas and power group Engie said it had booked 3.8 billion euros ($4 billion) worth of impairments due to low power prices and higher nuclear provisions in Belgium, although 2016 current earnings were in line with expectations.

Engie said the impairments included 1.9 billion euros related to power production activities in merchant markets in Europe, 1 billion euros for the revision of its nuclear decommissioning provisions in Belgium and 600 million euros related to the market environment on some of its global businesses.

Revenues fell 4.6 percent to 66.6 billion euros, core earnings before interest, tax, depreciation and amortisation (EBITDA) fell 5.2 percent to 10.7 billion, and net recurring income fell 4.3 percent to 2.5 billion. The net loss narrowed to 400 million euros from a net loss of 4.6 billion in 2015.

Analysts polled by Thomson Reuters had expected revenue of 65.7 billion euros, EBITDA of 10.87 billion euros, and net recurring income of 2.45 billion euros.

The company said it would pay a one euro dividend per share, in line with expectations, and said that on the fiscal years for 2017 and 2018 it planned to pay 0.70 euros per share.

For 2017, Engie anticipates a net recurring income between 2.4 and 2.6 billion euros, based on an estimated Ebitda of 10.7 to 11.3 billion euros.

$1 = 0.9498 euros Reporting by Geert De Clercq; Editing by Sudip Kar-Gupta

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