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Engie warns of hit from windfall levies, Belgian nuclear provisions
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PARIS (Reuters) – France’s Engie warned on Tuesday of an earnings hit from European Union approved windfall levies and larger-than-expected provisions for dismantling
PARIS (Reuters) – France’s Engie warned on Tuesday of an earnings hit from European Union approved windfall levies and larger-than-expected provisions for dismantling Belgian nuclear plants, sending the energy company’s shares sharply lower.
Engie forecast the impact on its group EBITDA from windfall levies in France, Belgium and Italy would be as high as 0.9 billion euros ($957 million)in 2022 and up to 1.5 billion euros in 2023, mostly relating to nuclear operations.
“Engie retains the possibility of contesting taxes that, in its view, do not comply with the legal framework and introduce unjustified discrimination between operators or energy sources, in particular in Belgium and Italy,” it said in a statement.
Separately, Engie said it had been told by Belgium’s Commission for Nuclear Provisions that the financial provisions associated with decommissioning nuclear power stations and spent fuel management would increase by 3.3 million euros.
The increases proposed by the CNP were disproportionate, Engie said, adding that it would submit an adapted proposal.
Engie’s shares were down 6.4% at 0945 GMT, the worst performer on France’s SBF-120 index.
($1 = 0.9406 euros)
(This Dec. 20 story has been corrected to fix figure in paragraph 4 to 3.3 billion euros.)
(Reporting by Caroline Pailliez and Gdansk Newsroom; Writing by Richard Lough; Editing by Kirsten Donovan and Alexander Smith)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance.
Windfall levies are taxes imposed on companies that experience unexpectedly high profits, often due to external factors like market changes or regulatory decisions.
Nuclear decommissioning refers to the process of safely closing and dismantling a nuclear power plant after it has reached the end of its operational life.
Corporate tax is a tax imposed on the income or profit of corporations. It varies by country and can significantly impact a company's financial performance.
A financial provision is an amount set aside in a company's accounts to cover future liabilities or expenses, such as decommissioning costs.
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