Engie says it may replace Russian gas if deliveries stop – 07/29/2022 at 09:49

ENGIE says it can replace Russian gas if deliveries stop

PARIS (Reuters) – On Friday it posted sharply increased outcomes for the primary half of 2022, marked by very excessive vitality costs towards a backdrop of conflict in Ukraine, and stated it was assured in its means to safe a alternative for Russian gas. In the occasion of a provide disruption.

France’s main gas provider stated in a press launch that it has decreased its publicity to volumes equipped by Gazprom for the winter of 2022-2023 from a peak of 15 terawatt-hours (TWh) to round 4 TWh, thanks specifically to choices. Increased use of liquefied pure gas (LNG) and thru gas pipelines.

“Today, we now have secured all of the volumes we have to serve our clients, a small remaining quantity of 4% (of Russian gas) which is in the end fully throughout the flexibility margin of our portfolio, and due to this fact we aren’t at all fearful. About this quantity,” the CEO Catherine McGregor stated in a press convention name.

“The demand for gas has decreased amongst our clients, whether or not people, small companies and enormous industrialists,” he underlined.

“If there was a state of affairs of a Russian gas shutdown within the winter, we might have the ability to totally exploit the remaining few %.”

Gas storage in France is now 77% full when it comes to NG quantity, which makes it doable to envisage a “pretty optimistic begin to the autumn” on this regard, Catherine McGregor additionally indicated.

For the winter of 2023-2024, NGO expressed confidence that “the surplus quantity compressed by new sources of provide, together with LNG, along with the lower in demand, will make it doable to complement the demand for Russian gas and attain storage ranges”.

First half web revenue of €5.0 billion

The group, which restated its outcomes for the primary half of 2021 to bear in mind the continuing sale of Equance, recorded a web revenue group share of 5.0 billion euros at the tip of June (in comparison with 2.3 billion), a web recurring end result. Group share of three.2 billion (towards 1.3 billion), an Ebitda of seven.5 billion (+44%) and a turnover of 43.2 billion (+72%).

Engie shares gained 1% to 12.18 euros at 07:10 GMT on the Paris inventory trade.

At the identical time, Engie introduced two new shopper assist schemes, together with a further assist of 100 euros on common for its 880,000 clients to learn from vitality checks and the creation of a assist fund of 60 million for SMEs going through specific difficulties. Apart from the “Tariff Shield” arrange by the Govt.

The gas and electrical energy supplier, which focuses on renewable vitality, decentralized vitality infrastructure and even “inexperienced” gas, has confirmed its targets for 2022, which particularly embody a recurring web end result, group share, between 3.8 and 4.4 billion euros and Now features a state of affairs of chopping off Russian gas provides.

If market circumstances and the value surroundings as much as June 30 proceed within the second half, they may make an “further contribution” of 0.7 billion euros to web recurring revenue, group share ranges – however he indicated.

NG, nevertheless, needed to revise downwards the valuation of its 9% stake in Nord Stream 1, a discount of EUR 259 million in comparison with December 31, 2021. Regarding Nord Stream 2, it acknowledged a credit score loss for the whole publicity of 987 million on March 31.

(Reporting by Benjamin Mallett; Editing by Kate Entinger)


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