Engie has announced actions that it is taking in its business to respond to the Covid-19 crisis.
The company said the health crisis is having “a significant impact on some of Engie’s customers and operations”.
It said: “As the impact on the group’s financial statements remains at this stage unquantifiable and subject to uncertain assumptions regarding the length and profile of this crisis, Engie is withdrawing its previously stated 2020 guidance and will provide an updated view on its consequent financial outlook to 2022 in due course”".
The company said it would adapt its plan to protect employees and sustain Engie's essential services.
It has also taken the following actions:
- Strengthened liquidity position, reinforced by recent bond placement
- 2020 guidance withdrawn given continuing business uncertainties
- AGM schedule maintained; 2019 dividend cancelled
- Solid liquidity, operational strength and strategic intent to resume dividends in future.
Engie has put in place an adaptation plan to ensure: the health and safety of group employees, their families, and of those of its service providers; continuity of essential internal and selected client operations; and limitation of financial impacts and protection of financial liquidity.
It added that the company “continues to maintain one of the strongest balance sheets in its sector, with €16.4 billion of liquidity (net cash plus undrawn credit facilities – outstanding commercial papers) including €8.6 billion of cash, as of end of February”.
It added that on March 20, the issuance of a triple tranche senior bond for a total of €2.5 billion further improved its financial position.
A statement from Engie’s executive leadership team – Claire Waysand, Judith Hartmann and Paulo Almirante, said: “From the beginning of this unprecedented crisis, we have implemented a comprehensive crisis management framework. We are taking the required operational and financial initiatives to ensure our continuation of essential services across our markets, while ensuring the safety of our employees, and maintaining strong liquidity and a sound balance sheet.
“The impact of the crisis on global supply chains, client operations and demand has been progressive, exceeding previous expectations, while the magnitude of impact varies by business line and is most pronounced in labour-intensive client solutions areas. Looking ahead, we are confident that we will together overcome this crisis and deliver for all our stakeholders in the years to come.”