"We've Started Our Journey to a Growing Engie" (Isabelle Kocher, CEO)


In addition to the presentation of its results, the French energy company presented a new savings program of 800 million euros by 2021. This plan also provides for the exit of Engie from twenty countries and 6 billion disposals of assets. What to be "very well positioned to grow," according to the group's CEO, Isabelle Kocher.


Published Thursday 2018 results in sustained organic growth, though slowed by the shutdown of nuclear reactors in Belgium. After reaffirming its 2017 results to reflect discards, Engie reported in 2018 recurring net income Participation of the group of 2.5 billion, 10.1% year on year (+ 17.3% organic). OEBITDA the group stabilized at 9.2 billion (+ 0.4% in the gross change, + 4.7% in organic terms).

700 million


The negative impact of nuclear power on Engie's accounts is 700 million euros.

For Judith Hartmann, chief financial officer of Engie, the company "really has become a more profitable business, thanks to the focus of your investments and your cost efforts ". However, nuclear has played tricks bad for the energetic. "Nuclear energy had a very negative impact of EUR 700 million on our Ebitda, but we were able to compensate for this impact"explains Judith Hartmann.

The Tihange nuclear site and its three reactors.


"Ebitda Benelux segment is significantly down -134% organic"says Engie in his statement, noting that the poor performance of the Belgian market is mainly"unscheduled stops (of several Belgian nuclear reactors), leading to a very low availability rate in 2018 (52%) as well as lower pricesBenelux is the only market with organic growth in negative Ebitda, from 600 million euros in 2017 to 200 million last year.

Green light to revive Doel 1

Reactor No.1 of the Doel nuclear site (433 MW) may restart, according to the Federal Nuclear Control Agency. It was not available since the end of April 2018 after a leak detected in the emergency cooling circuit of the reactor. His return to the network was initially scheduled for December last year.

These numbers, however, are in line with analysts' expectations. The consensus for the net result was around 2.4 billion euros, of which 9.2 billion for Ebitda. In contrast, the turnover was expected to 64.4 billion euros by the market. Although up 1.7% year on year, Engie's sales exceeded 60 billion euros. Engie also announced a 22% drop in profit € 1 billion last year, as a result of impairment losses.

Radical Refocus

"Engie is a different group than it was three years ago."

Isabelle Kocher

CEO of Engie

Engie, who claims to want to become a world leader in zero-carbon transition, wants to to leave twenty countries in 2021. His goal: to focus his investments in 20 countries and 30 cities, where he wants to be in the top 3, announces the group in his statement. Engie has not provided an exhaustive list of its priority countries, but it cites Western Europe, North America, Australia and Singapore, but also countries like Romania, Mexico, Brazil. Chile, Peru or Colombia. He also wants to increase his presence in Africa and Southeast Asia, targeting a number of metropolises. But he must stay in Belgium, where he is an important player even if the setbacks of his nuclear power plants weighed on his results for 2018. He announces that he "stabilize nuclear activities in Belgium with the increase in the availability rate ".

"Over the last three years, we've really laid the groundwork for a more lucrative business."says the group's CEO Isabelle Kocher.We put the energy transition at the center of our strategy, because we had the intuition that it would accelerate. We are now very well positioned to grow. We have become one of the largest developers of renewable energy"notes the head of the energy expert, noting that his group began building"a solid reputation for innovation, with activities that are still emerging on the Engie scale, but which will undoubtedly be very important in the future, such as the collection of electric vehicles, micro-networks or hydrogen".

In terms of business, Engie will focus on private companies and local communities, placing the priority of renewable energy and "customer solutions". Selling energy to people pays little: it will only be used when it is already active – this is the case of Belgium, where it is by far the largest supplier.

In addition, Engie will continue, but at a slower pace, the turnover of its assets: after nearly 15 billion discards in the last three years, it still counts sell for 6 billion euros of assets over the next three years. And over the same period, it has announced 11-12 billion of growth investments. Engie is also planning a savings program of 800 million euros for the period 2019-2021, echoing the 1.3 billion implemented in 2016-2018.

In the markets, Engie's share lost ground

following the publication of the group's results and its new strategic plan, dropping slightly more than 3% in the middle of the session.


Source link