GDF Maintains 2015 Targets As Profitability Slips in 1st-Quarter

By Noemie Bisserbe and Inti Landauro

PARIS--GDF Suez SA (GSZ.FR), which was renamed Engie last week, confirmed Monday its financial targets for 2015 despite a sharp drop in the French power utility's profitability in the first quarter.

The company said it still expected a net profit of 3 billion euros ($3.28 billion) to EUR3.3 billion in 2015, even as earnings before interest, taxes, depreciation and amortization, or Ebitda, fell 10% to EUR3.6 billion euros in the three months ended March.

Analysts polled by FactSet expected EUR3.71 billion.

Sales over the period fell 3% to EUR22.1 billion. Analysts expected sales of about EUR21.85 billion in the first quarter.

Like most of its peers in Europe, the group has suffered from sluggish demand for energy in slow-growth Western Europe. At the same time, subsidies for renewable energy have made traditional power plants less profitable.

Two months ago, the company had warned it may suffer this year from lower oil and gas prices, but that it would maintain its profit by cutting costs and delaying investment.

Write to Noemie Bisserbe at [e-mail]

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