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2022-05-17 13:45:00

RUSSIAN GAS FOR FRANCE

RUSSIAN GAS FOR FRANCE

REUTERS - May 17, 2022 - French power company Engie (ENGIE.PA) said on Tuesday it has reached an agreement with Gazprom (GAZP.MM) on its scheme to pay for Russian gas in roubles, and at the same time reported higher first-quarter profits and raised its 2022 financial targets.

Engie shares were up 5.4% to 12.26 euros at 0733 GMT taking them to the top of France's CAC 40 Index (.FCHI).

CEO Catherine MacGregor told a call with reporters that Engie and Gazprom have agreed on a solution in line with both companies' expectations in terms of currencies and with European sanctions.

Engie declined to comment on whether this meant the utility had opened, or planned to open, an account with Gazprombank.

MacGregor told reporters during the call that the next payments were "imminent".

The European Commission shared updated guidance with EU countries on Friday. 

It confirmed previous advice that EU sanctions do not prevent companies from opening an account at a designated bank, and companies can pay for Russian gas - as long as they do so in the currency agreed in their existing contracts and declare the transaction completed when that currency is paid.

The energy group said in a statement that it has taken multiple actions to improve security of supply, including increasing volumes with existing suppliers and contracts with new suppliers, as well as adapting its hedging actions.

Engie said it has reduced its direct exposure to Gazprom from a maximum of 15 terawatt hours (TWh) to just under 5 TWh at the end of March.

In the context of rising power prices, which have increased following Russia's invasion of Ukraine, it upgraded its 2022 financial guidance, saying it expects 2022 group share net recurring income of 3.8-4.4 billion euros ($3.97-$4.59 billion), versus a previous target of 3.1-3.3 billion euros.

Engie's revenue for the first quarter ending March 31 rose 85% from a year ago to 25.6 billion euros, while its earnings before interest (EBIT) grew 74% to 3.5 billion euros.

Analysts at JP Morgan said the first-quarter results were very strong.

"We believe that the company is very well on track to deliver: this will ultimately depend on a number of factors including power prices evolution and the evolution of Russia/Ukraine situation", they said in a note.

($1 = 0.9576 euros)

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Earlier:

RUSSIAN GAS FOR FRANCE
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EUROPEAN ENERGY STORM
The energy package due this week may include measures to address the increasing household costs and energy poverty.
RUSSIAN GAS FOR FRANCE
2022, May, 12, 14:05:00
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Requests via the Velke Kapusany border point in Slovakia were around 512,056 megawatt hours (MWh) per day, down from 856,922 MWh per day earlier on Thursday, data from Slovakian operator TSO Eustream showed.
RUSSIAN GAS FOR FRANCE
2022, May, 11, 11:10:00
EUROPEAN GAS PRICES UPDOWN
Russia supplied about 40% of the European Union’s gas demand last year, and about a third of that transited Ukraine, making it a linchpin in the continent’s energy security.
RUSSIAN GAS FOR FRANCE
2022, April, 28, 14:05:00
EUROPE PLAN TO PAY IN RUBLES
Gas distributors in Germany, Austria, Hungary and Slovakia are planning to open rouble accounts at Gazprombank in Switzerland in order to satisfy a Russian requirement for payments in its own currency
RUSSIAN GAS FOR FRANCE
2022, April, 27, 11:45:00
EUROPEAN GAS PRICES UP
"As of the end of the business day on April 26, Gazprom Export had not received payments for gas supplies in April from Bulgargaz (Bulgaria) and PGNiG (Poland) in rubles," Gazprom said in a statement.
RUSSIAN GAS FOR FRANCE
2022, April, 26, 14:15:00
RUSSIAN GAS VIA UKRAINE CAN DOWN
Shipments of Russian gas via the Ukrainian network have continued unaffected since Moscow's invasion on Feb. 24.
RUSSIAN GAS FOR FRANCE
2022, April, 25, 14:35:00
RUSSIAN GAS FOR ROUBLES IS POSSIBLE
"EU companies can ask their Russian counterparts to fulfil their contractual obligations in the same manner as before the adoption of the decree, ie. by depositing the due amount in euros or dollars," the EC said in the document.
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Tags: RUSSIA, GAS, FRANCE, GAZPROM, ENGIE