November 12, 2021 Read More →

Engie unloads energy services business, earmarks cash for renewables

S&P Capital IQ ($):

Egie SA’s deal to sell energy services business Equans SAS to Bouygues SA is a “major milestone” in the French utility’s disposal program and will enable it to ramp up spending on renewables, executives said Nov. 10.

“With an enterprise value at €7.1 billion, this is among the largest carve-outs in Europe and a testament to our ability to deliver complex projects,” Engie CEO Catherine MacGregor told analysts.

Engie is planning asset disposals totaling €9 billion to €10 billion by 2023 as part of a wide-ranging corporate refocusing. Already this year, the utility agreed to off-load its 11.5% stake in GRTgaz SA, France’s largest gas transmission network, and signed deals to sell businesses in LNG and energy storage.

In reinvesting the proceeds from its sales, Engie’s investment strategy continues to center around organic growth. More than 90% of the €2.9 billion it spent on growth areas in the first nine months of 2021 was invested organically, predominantly in its renewables and networks segments.

In that time, the company added 1.8 GW of new renewables. It expects to commission another 1.2 GW by the end of the year. That will take capacity additions to 9 GW since 2019, the company said. It plans to reach 50 GW by 2025 and 80 GW by 2030, up from 33 GW today.

[Alex Blackburne]

More: Engie earmarks proceeds for renewables after cashing in on energy services unit

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