French power company Engie saw a strong renewables performance in the first half of the year despite declining revenues.
Renewables contributed €1.3b (£1.1b) to the company’s revenues in the first half of 2024, up from €1.2b in the same period of 2023.
This was driven by favourable hydro conditions in France and Portugal, as well as new capacity in Latin America, the US, and Europe, though partially offset by lower prices in Europe.
Engie added more than 1GW of new renewables capacity in the first half, with the bulk in Brazil (700MW) and France (200MW)
With 6.9GW currently under construction, Engie’s renewables pipeline had grown to 95GW by the end of June 2024.
Engie, along with EDP Renewables, is part owner of Ocean Winds, the developer of several Scottish offshore wind farms, including the operating 950MW Moray East, the upcoming 882MW Moray West, and the in-development Caledonia and Arven.
Moray West recently delivered first power to the grid ahead of expected commercial operations in 2025.
Engie said that it remains confident of achieving its annual target of an average of 4GW of additional renewables capacity up to 2025.
However, the company saw its overall revenues for the first half fall more than 20% to €37.5b, down from €47bn euros in the first half 2023.
Engie said that a mild winter reducing demand for heating contributed to the decline.
However, the company also expects lower-than-expected financial costs to push up its earnings for 2024.
Engie raised its earnings predictions, expecting a net income for the full year to be €5b-5.6b, €800m higher than previously predicted.
CEO Catherine MacGregor said: “In the face of a market returning to normal conditions, Engie has once more delivered very strong H1 results, enabling us to raise our full year 2024 guidance.
“This financial performance demonstrates the power of our integrated model and showcases our operational capabilities.”
She added: “More than ever, Engie reiterates its commitment of an energy transition affordable to all.”
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