Rising renewables output helps Engie to another bumper profit

French energy giant Engie posted another big profit in 2023 thanks, in large part, to burgeoning renewable power production.

Excluding nuclear, the Paris-headquartered utility reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) of €13.7bn ($14.9bn) in 2023, up 13% on the previous year.

The company said rising returns were driven mainly by renewables and the company's energy management and sales (GEMS) division.

Engie has been expanding aggressively into global clean energy, especially solar and wind, and has used a mixture of organic and inorganic growth to build one of the world's biggest renewables pipelines. Engie's portfolio also has a more even mix of mature and less mature projects than some of its rivals.

Engie reported that 3.9GW of additional renewables capacity was installed in 2023, to reach a total 41.4GW, with 6.3GW more under construction.

The current total of installed capacity includes 17.9GW of hydroelectric power, 14.3GW of onshore wind, 6.6GW of solar and 1.5GW of offshore wind.

Additions to installed capacity in 2023 included 1.9GW in North America.

The company also stepped up its investments in battery storage with the acquisition of BRP in the US and the commissioning of Hazelwood in Australia. Engie ended the year with 1.3GW of BESS in operation and 3.6GW secured, stating that this means that the company is on track to reach a target of 10GW by 2030.

Capital expenditure rose 48% on the year to €8.1bn and the growth path pushed year-end net financial debt to €29.5bn, up €5.4bn from 2022.

"Engie had another excellent year in 2023, with EBIT up 18% and strong cash-flow generation. These results demonstrate the progress achieved in executing our strategy, and they confirm our capacity to move forward within a volatile energy market environment,” said CEO Catherine MacGregor.