Renault swings back to losses on Russia exit, offers dividend

Renault 4 electric is presented at 2022 Paris Auto Show, France Oct 17, 2022. REUTERS/Stephane Mahe/File photo

BOULOGNE-BILLANCOURT, France  – French carmaker Renault swung back to losses in 2022 as it took a hit from its pullout from Russia, but it offered a dividend for the first time in four years and saw a strong increase in its operating margin.

The group share of net income saw a 338 million euro loss, sharply down from an 888 million euro profit in 2021 but broadly in line with an analyst consensus provided by the company that saw a 310 million euro loss.

Renault, which is revamping its 24-year old alliance with Nissan, also said on Thursday that it was targeting a group operating margin of 6 percent or more in 2023, after it reached 5.6 percent in 2022, slightly above expectations and up from 2.8% in 2021.

Renault, which had returned to profit in 2021 after two years in the red and a historic loss in 2020, said its net income from continued operations, without the disposal of its former Russian unit Avtovaz, was up from 2021.

It said a dividend of 0.25 euros per share will be proposed to the vote of the annual general meeting on May 11.

Renault sold its majority stake in Avtovaz to the Russian state for reportedly just one rouble last year, but with a six-year option to buy it back.

Under a deal announced earlier this month, Renault, will cut its stake in Nissan to 15 percent from 43 percent now, in a reboot of their long and sometimes contentious alliance.

The lopsided relationship between the two car makers, which was deeply strained by the 2018 arrest of its architect and former chairman, Carlos Ghosn, amid financial scandal, had long been a source of friction among Nissan executives.

The agreement, which came after months of tense talks, will also see Nissan buy a stake of up to 15 percent in Renault’s electric vehicle unit Ampere.