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 noemie.bisserbe@wsj.com
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