Engie's first-half earnings rise 3.3% on strong gas trading, power grid income
Engie Reports Strong First-Half Financial Results
By America Hernandez
PARIS, July 31 - France's Engie reported a 3.3% rise in first-half earnings on Friday, beating expectations, as strong natural gas trading and higher income from electricity transmission tariffs offset lower gas deliveries due to warmer-than-average weather.
The state-backed utility's earnings before interest and taxes, excluding nuclear, for the January-to-June period were €5.3 billion ($6.10 billion).
Analysts had on average expected EBIT at last year's level of €5.1 billion, according to LSEG.
CEO Commentary and Upgraded Guidance
"This result shows our ability to create value in very different market conditions," CEO Catherine MacGregor said on a press call.
Europe's largest gas network operator raised its annual guidance to EBIT excluding nuclear of between €9.2 billion and €10.2 billion, up from a previous range of €8.7 billion to €9.7 billion.
The group share of net recurring income for 2026 is now expected to be between €4.9 billion and €5.5 billion, above the previous range of €4.6 billion to €5.2 billion.
Performance Drivers
Strong Gas Trading and Market Conditions
STRONG GAS TRADING, LOWER GAS DELIVERIES
European benchmark natural gas prices averaged €45.63 per megawatt-hour in the April-June quarter, 28% higher than in the second quarter of 2025, as the Iran war restricted the flow of seaborne cargoes from the Middle East.
However, over the first six months of 2026, European gas prices were only 4% higher overall than the previous year, reflecting lower prices and demand prior to the closing of the Strait of Hormuz.
Energy Management and Trading Results
"Our energy management business performed better than we had expected due to the gas price volatility from the situation in the Middle East, but it is important to note that these gains were marginal compared to the Russian gas crisis of 2022," CFO Pierre-Francois Riolacci said on a press call.
Engie's supply and energy management business, which sells power and gas to retail customers and business clients and engages in some trading, earned €1.55 billion, a 0.4% rise from the same period last year, with trading earnings offsetting depressed sales.
Power Production and Infrastructure
EBIT from the batteries and power production unit fell 8.5% to €1.8 billion, as gas generation income dropped 30% on warmer weather and less gas usage.
"Our upgraded annual guidance is mainly due to the positive effects of our acquisition of UK Power Networks and the success of our internal efficiency program, which contributed €304 million," he added.
Energy infrastructure activities were up 13%, reaching €2.2 billion, largely due to a near-doubling of income from electricity networks after Engie finalised its purchase of major British grid operator UK Power Networks in May.
Additional Information
($1 = 0.8690 euros)
(Reporting by America Hernandez in Paris; Editing by Jamie Freed)
