Earnings of French utility Engie in the third quarter jump 18%

The French utility Engie reported a 18% increase in its third-quarter earnings, citing a strong output of renewable energy and hydropower as well as an increased profit from infrastructure and investments.

The company that sells and trades gas and electricity reported third-quarter earnings, excluding nuclear, of 1.47 billion euro ($1.58 billion).

By 0720 GMT, shares of the company had risen by 0.8%.

Engie is taking advantage of the high rainfall in France and Portugal to boost hydropower production, which will provide cheap flexible generation for Chile. Flex Gen is a business that includes energy production through thermal power plants, storage batteries and hydrogen production.

The company's renewables division, which generated 479 million euro in profit, was the largest contributor to its profits, according to it, an increase of 48% on a year-over-year basis. This division is mainly responsible for hydropower plants, but also a growing number wind and solar farms.

CFO Pierre-Francois Riolacci said that its gas trading division, Global Energy Management and Sales(GEMS), had more than doubled the earnings from last year's same-period period.

The company has confirmed its previous guidance, and stated that the net recurring income for full-year would be higher than its range of 5 to 5.6 billion euros.

(source: Reuters)