CAC 40-listed energy company Engie SA (FR:ENGI) posted another year of strong earnings. However, it anticipates a decline in profit starting in 2024. The company indicated that profits are expected to decrease in 2024 and project further declines in the subsequent two years as energy prices recede. On the plus side, the positive numbers were driven by energy trading, sustained expansion in renewable energy generation, and a resurgence in its French retail segment.
Engie is a French utility company with operations spanning the entire energy value chain, including electricity, natural gas, renewables, and more.
2023 Results Snapshot
The company’s latest results underscore significant growth in its Renewables sector, adding 3.9 gigawatts (GW) of additional installed capacity in 2023. This expansion brings Engie’s total installed capacity in Renewables to an impressive 41.4 GW, reflecting its commitment to leading the transition towards sustainable energy solutions.
Revenue in 2023 was down by 11.4% to €82.6 billion compared to the previous year. On the other hand, EBITDA (ex. nuclear) grew by 12.7% to €13.7 billion for the full year.
The company proposed a dividend of €1.43 per share for 2023.
What Is the Forecast for Engie SA?
UBS analyst Wanda Serwinowska reiterated her Buy rating on the stock, forecasting an 18% growth. Likewise, analyst James Brand from Deutsche Bank confirmed his Buy rating on the stock while forecasting growth of 15%. According to TipRanks, ENGI stock has a Strong Buy consensus rating based on Buy recommendations from all seven analysts. The Engie share price target of €19.63 offers a growth potential of 32.35% from current levels.
