Engie Remains Mired in Red Ink on Energy Plant Write-Downs

By Inti Landauro

PARIS--French energy utility Engie (ENGI.FR) remained mired in red ink last year on another hefty write-down of the value of its conventional power plants, struggling with low electricity prices across Europe, and provisions for its Belgian nuclear facilities.

The company, formerly known as GDF Suez, said posted a net loss of 400 million euros ($421.3 million), though that was smaller than the EUR4.6 billion recorded the previous year.

Engie's net recurring income--a measure that strips out restructuring costs and other impairments--fell slightly to EUR2.5 billion from EUR2.6 billion thought the figure was in line with management's target set for the year

The company booked impairments worth EUR3.7 billion during the year, partly offset by capital gains made on the sale of assets. The impairments also include higher provisions for its nuclear plants in Belgium.

The weight of write-downs on Engie's balance sheet for another year shows how sluggish demand for energy and subsidies for renewable energy has hit European utilities hard by making traditional power plants unprofitable. The company has written down a massive $30 billion worth of assets over the past four years.

The company confirmed that it would keep its dividend at EUR1 a share this year and next and then lower it to EUR0.70 a share thereafter.

-Write to Inti Landauro at [e-mail]

(END) Dow Jones Newswires

March 02, 2017 02:59 ET (07:59 GMT)

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