Electrabel siphons off €1,2 billion in profits to French parent company
Belgian energy corporation Engie Electrabel will pay 1,24 billion euros in profit to its French parent company Engie, newspaper De Tijd reported on Wednesday.
Due to the good performance of Belgian nuclear power plants, higher market prices and an increase in the number of customers, Electrabel had a good year. Including its foreign subsidiaries, Electrabel’s operating profit rose from 2,5 billion euros in 2020 to 3,4 billion in 2021.
The company is therefore distributing €1,24 billion in profits to Engie, of which it is a subsidiary. Such profit distributions have been subject to criticism in the past – possibly more so in the current context of high energy prices.
“After a few difficult years, the profits are back at the level where they should be.”
“The dividend is a normal return for the billions invested by shareholder Engie. It represents 66 percent of the net result of 1,9 billion euros”, Patrick Gaussent, Electrabel’s financial director, told De Tijd. “After a few difficult years, the profits are back at the level where they should be.”
The financial director stresses that in the coming years Electrabel will return money set aside for nuclear clean-up to Synatom. This subsidiary has set aside €14,5 billion in provisions for the job, but much of that money was lent to Electrabel. “We will voluntarily return all the provisions for decommissioning to Synatom by 2030. This year, it is 700 million euros”, Gaussent says.
Photo shows the Tihange nuclear power plant of Engie Electrabel in Tihange, Belgium © REUTERS/Bart Biesemans