Energiser Investments Share Discussion Threads

[the grumpy old men] 09/3/2017 10:48

Engie: UBS confident over the long term
FR0010208488

Published on 09/03/2017 at 11h13

(UBS) - The UBS analyst team has drawn positive conclusions from Engie's recent annual publication. In particular, the broker was pleasantly surprised by the 2017 guidance (EBITDA in a range of 10.7 / 11.3 billion and net profit of between 2.4 and 2.6 billion euros), well above consensus forecasts. After updating its profit sequence, UBS therefore raises its target on Engie from 12 to 12.50 euros, while renewing its "neutral" opinion. The prudence of the research office is due to tensions on the balance sheet, which should not disappear any time soon after the sale of projected assets. In contrast, UBS is confident about the transformation story that is expected to take effect beyond 2018.

[maywillow] 09/3/2017 08:39

Engie Seeks to Sell Entire Stake in India's Biggest LNG Importer
by Saket Sundria
and Debjit Chakraborty
9 March 2017, 08:39 CET

Engie offers to sell 10% stake to existing Petronet founders
Co. holds 75 million shares, valued at about 29 billion rupees

France’s Engie SA plans to sell its entire 10 percent holding in India’s biggest importer of liquefied natural gas.

GDF International, an Engie unit, has written to the four Indian state-owned companies that together own half of Petronet LNG Ltd. to offer shares in proportion to their holding in the company, Petronet said in a stock-exchange filing Thursday.

“It is mandatory for GDF to offer its holding to other founders as per the shareholders agreement,” R.K. Garg, finance director of Petronet LNG, said in a phone interview. “Only if the other founders don’t buy, GDF can sell it to anyone it wishes.”

Explorer Oil and Natural Gas Corp., refiners Bharat Petroleum Corp. and Indian Oil Corp., and gas distributor GAIL India Ltd. form the founder group, with a 12.5 percent stake each in Petronet.

Engie holds 75 million shares in Petronet valued at about 29 billion rupees ($434 million) at current market prices. Petronet fell as much as 2.2 percent to 378.20 rupees in Mumbai and was trading at 386.10 rupees as of 12:47 p.m.

Subir Purkayastha, director finance of GAIL India Ltd., and A.K. Sharma, the finance head of Indian Oil Corp., couldn’t be reached for comment on their mobile phones.
Before it's here, it's on the Bloomberg Terminal.

[maywillow] 08/3/2017 18:45

Suez buys GE Water in $3.37 billion deal, considers capital increase

By Geert De Clercq | PARIS

French waste and water group Suez (SEVI.PA) and Canadian fund Caisse de dépôt et placement du Québec (CDPQ) will buy GE Water from General Electric (GE.N) for an enterprise value of 3.2 billion euros (2.77 billion pounds),Suez said in a statement.

In an all-cash deal, Suez and CDPQ will buy 100 percent of GE Water through a 70/30 joint venture, to which Suez will contribute its existing industrial water activities. The new business will operate under the Suez brand.

Chief executive officer Jean-Louis Chaussade told reporters the industrial water market is more important than Suez's traditional municipal water markets because industry accounts for 15 to 20 percent of global water consumption compared to just 5 to 8 percent for human consumption in cities.

The industrial water market is worth about 95 billion euros globally and grows by about 5 percent per year, he said.

"This is a strategic acquisition for Suez," Chaussade said.

Suez said it had fully underwritten bridge financing in place for the transaction, and is considering refinancing it through a capital increase of about 750 million euros.

It said its main shareholders, Engie (ENGIE.PA), CriteriaCaixa and Caltagirone Group have confirmed their intention to participate in the capital increase for their pro rata share.

Lead shareholder Engie said in a separate statement it would subscribe to the capital increase to the full extent of its 32.6 percent stake in Suez at a cost of about 240 million euros.

Suez will also issue a 1.1 billion euro long-term senior bond and 600 million worth of hybrid bonds. CDPQ will contribute 700 million euros of equity to the venture.

The new business unit will have revenue of about 2 billion euros, compared to Suez's current 15 billion euros, and will employ 10,000 people, of which 7,500 will come from GE Water.
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Chaussade said Suez expects 200 million euros worth of revenue synergies per year in the group's water business, but had not included possible synergies between its water and waste business.

"Cross-selling between our water and waste units will be reinforced, as clients increasingly want environment services that include water and waste treatment," he said.

($1 = 0.9483 euros)

(Reporting by Geert De Clercq; Editing by Adrian Croft)

[la forge] 06/3/2017 10:43

Enea to buy Engie for PLN 1.26 billion
March 5, 2017 Wbj.pl Economy

WSE-listed power utility Enea will pay PLN 1.26 billion preliminary price for the purchase of Engie’s Polish assets, including the Połaniec 1.9 GW power plant.

Engie provided Enea “with the calculation of the initial selling price for 100 percent shares in EEP amounting to PLN 1,264,159,355,”; the filing said. “The Initial Selling Price will be subject to verification by the Company and to potential adjustments in the period occurring directly after taking the control over EEP, under the terms specified in the Agreement, compliant with the market standards applying to such transactions.”

The initial price included, Engie’s value estimated at end-2016 at PLN 1.07 billion, the debt-to-equity conversion at the PLN 1.22 billion level and debt repayment of PLN 113 million.

The deal was previously approved by the antitrust watchdog UOKiK and the ministry of energy.

[sarkasm] 03/3/2017 14:18

ercle Finance - 1 hour 51 minutes ago

Share

Companies:

ACT.
ENGIE SA
THESE

- A Way of the Cross: this is what the fate of the shareholders of Engie (London: 0LD0.L - actualité) has had the courage to remain so in recent years. The price of the shares fell to around ten euros at the beginning of 2017. But over the week, after its annual accounts, the Engie The best performance of the CAC 40: + 14.5%!

What about the annual accounts for 2016 presented on March 2? A lesser evil: more than 10% on a comparable basis in the first half of the year, the contraction of the energy company's annual turnover (A0JC59 - actualité) was limited to 4% over the year.

On an organic basis, recurring operating income took the luxury of taking 1.6% to 6.2 billion euros, although recurring net profit (2.5 billion euros, 2.2 billion euros excluding Changes and disposals) is still slightly down (-4.3%, on a reported basis).

Lastly, it should be noted that, taking into account the negative exceptionals, if the group's net income remained in the red in 2016 at 415 million, it reached - 4.6 billion a year earlier.

And now ? If Gérard Mestrallet remains chairman of the board, he spent last year the general management of the ex-GDF Suez (Milan: 1GSZ.MI - actualité) to Isabelle Kocher, who proved active: with eight Billions of euros in sales announced, the 2018 target is already reached at more than 50% when the implementation of savings happens so that the target (2018 also) has been raised by 20% to 1, 2 billion euros. In addition, the group should accelerate its investments in more dynamic segments, such as renewable energies, which appear to be financially attractive. In short, there is clearly something new in Engie.

Finally, forecasts for 2017, driven by the combined effects of the recovery in energy commodity prices and economies, are encouraging: the turnover should revive this year with 'strong' organic growth, anticipates management, and the surplus Gross operating income should follow.

What, finally, of the dividend? Stable at one euro for 2016, it will be as expected reduced to 0.70 euro for 2017 as 2018, a more sustainable level that should reassure, especially since it ensures a return (2017) always higher than 5 %.

Oddo Securities also welcomes an encouraging 'guidance' 2017. According to analysts, 'the risk of downward revision of the consensus seems nil for the moment', a good point for Engie after years of scarcity. At the time of purchase, Oddo aims at 14.1 euros.

[sarkasm] 03/3/2017 10:26

Published on 03/03/2017 at 09h58

The average price target of Engie analysts has shifted from 13.76 to 14.09 euros after the publication of the 2016 results and the 2017 prospects of the energy company. After a period of adverse news, an inflection point seems to have been reached on the file, with a more promising information flow, at the level of the divestitures, the strategic plan and the objectives. Among the most prominent changes, Bank of America Merrill Lynch was seduced and raised its recommendation to purchase. At AlphaValue, Juan Rodriguez reiterated his opinion on the purchase and its objective of 14 euros, but finds that expectations are now better anchored and that the more dynamic profile advocated by management begins to point his nose.

The action Engie could well spend the whole week in the green. It rose by 1.6% this morning after jumping 8.2% the day before. For the time being, the share gained 14.1% over the week, its best performance since the week of Monday 13 October 2008, when the title (still called GDF Suez) had resumed 21% ... but After a fall of -34% over the previous week, in the wake of rumors of authoritarian regulation of the Belgian market, which had plunged the record, when the financial crisis was in full swing.

[waldron] 02/3/2017 08:42

PARIS--French energy utility Engie (ENGI.FR) remained mired in red ink last year on another hefty write-down of the value of its conventional power plants, struggling with low electricity prices across Europe, and provisions for its Belgian nuclear facilities.

The company, formerly known as GDF Suez, said posted a net loss of 400 million euros ($421.3 million), though that was smaller than the EUR4.6 billion recorded the previous year.

Engie's net recurring income--a measure that strips out restructuring costs and other impairments--fell slightly to EUR2.5 billion from EUR2.6 billion thought the figure was in line with management's target set for the year

The company booked impairments worth EUR3.7 billion during the year, partly offset by capital gains made on the sale of assets. The impairments also include higher provisions for its nuclear plants in Belgium.

The weight of write-downs on Engie's balance sheet for another year shows how sluggish demand for energy and subsidies for renewable energy has hit European utilities hard by making traditional power plants unprofitable. The company has written down a massive $30 billion worth of assets over the past four years.

The company confirmed that it would keep its dividend at EUR1 a share this year and next and then lower it to EUR0.70 a share thereafter.

In reaction to the tough market conditions, Engie's Chief Executive Isabelle Kocher has decided to get rid of some of its assets exposed to commodity prices and energy markets and plans instead to focus on businesses with regulated prices, on services and on renewables.

The company has said last year it planned to sell assets worth EUR15 billion and invest EUR22 billion between 2016 and 2018 to bring its share of earnings before interest, taxes, depreciation and amortization from contracted and regulated activities to 85% from 50% at the end of 2015.

After selling many thermal power plants, mainly coal-fired ones, Engie has brought the proportion of its assets made up of regulated, services and renewables businesses to 75% at the end of 2016.

The company said last year's revenue fell 4.7% to EUR66.6 billion, while Ebitda fell 5.2% to EUR10.7 billion.

A group of analysts polled by FactSet expected an average net profit of EUR2.42 billion on sales of EUR65.99 billion and Ebidta of EUR10.77 billion.



-Write to Inti Landauro at [e-mail]



(END) Dow Jones Newswires

March 02, 2017 03:03 ET (08:03 GMT)

[waldron] 02/3/2017 08:17

PARIS--French energy utility Engie (ENGI.FR) remained mired in red ink last year on another hefty write-down of the value of its conventional power plants, struggling with low electricity prices across Europe, and provisions for its Belgian nuclear facilities.

The company, formerly known as GDF Suez, said posted a net loss of 400 million euros ($421.3 million), though that was smaller than the EUR4.6 billion recorded the previous year.

Engie's net recurring income--a measure that strips out restructuring costs and other impairments--fell slightly to EUR2.5 billion from EUR2.6 billion thought the figure was in line with management's target set for the year

The company booked impairments worth EUR3.7 billion during the year, partly offset by capital gains made on the sale of assets. The impairments also include higher provisions for its nuclear plants in Belgium.

The weight of write-downs on Engie's balance sheet for another year shows how sluggish demand for energy and subsidies for renewable energy has hit European utilities hard by making traditional power plants unprofitable. The company has written down a massive $30 billion worth of assets over the past four years.

The company confirmed that it would keep its dividend at EUR1 a share this year and next and then lower it to EUR0.70 a share thereafter.



-Write to Inti Landauro at [e-mail]



(END) Dow Jones Newswires

March 02, 2017 02:59 ET (07:59 GMT)

[grupo guitarlumber] 28/2/2017 13:29

Regulated gas tariffs, applied by Engie to about 5.8 million consumers in France, will increase by 2.63% on average on 1 March, the Energy Regulatory Commission (CRE) announced on Tuesday.


The increase (excluding taxes) will be 2.7% for gas-fired households, 0.9% for consumers using gas for cooking, and 1.7% for dual-use cooking And hot water.


"The increase in March is due to the increase in the price of gas on the wholesale market in the Netherlands and on the Northern France market (PEG Nord) compared to February," explained CRE in a press release.


"The sharp decline in temperatures in January has encouraged gas consumption and the use of stocks, which has led to an upward trend in European prices," she said.


Since 1 January 2014, however, regulated gas tariffs have declined by an average of 12.7%.


These tariffs are revised monthly, using a formula that takes into account gas prices on the wholesale market and the price of a barrel of oil.


Since the opening of the energy market to competition, the 10.6 million French consumers subscribing to gas have the choice between the regulated tariffs of the former monopoly and the market prices proposed by both Engie and its Competitors (EDF, Direct Energie, Eni, Lampiris, etc.).





(END) Dow Jones Newswires


February 28, 2017 07:39 ET (12:39 GMT)

[sarkasm] 27/2/2017 13:58

02/03/17 | 08:00 Année 2016 Publication de résultats

[maywillow] 14/2/2017 13:01

ENGIE: Credit Suisse lowers its price target

By Agence Option Finance Published on 14/02/2017 at 10:51 Updated on 14/02/2017 at 10:51



(AOF) - Credit Suisse reduced its target price on Engie from 14.4 to 12 euros while reiterating its Neutral opinion. The broker reduced its forecast for 2019 by 5% (by 11% in 2017). After several years of underperformance of the title, the question is whether the new strategy of the group will bear fruit. However, the consulting firm considers that the new Engie will not necessarily give rise to additional results.

[waldron] 11/2/2017 09:24

19/01/2017 | 10:21
UBS is downgrading its recommendation on "Engie de Achat" to "Neutral" and its target price of 16.5 to 12 euros, expecting further negative revisions of BPA in 2017 and that proceeds from disposal go to debt reduction And the protection of the credit rating.

'This means that the dividend of 0.70 euro per share is unlikely to increase in 2017-2018, which, combined with a sluggish EPS, limits the chances of a progression in the stock over the next 12 months' Believes the broker.

UBS believes Engie's EPS could progress more rapidly from 2018 but this potential is not expected to be taken into account by the market in 2017 given the risks of carrying out the transformation of the energy group.

The broker specifies that its new target price of 12 euros is based on a valuation at 12.8 times the expected EPS in 2018 and on a target dividend yield of 5.8%. 'A revaluation is possible, but not before 2018', he said.

[waldron] 11/2/2017 09:19

23/01/2017 | 10:28
Bryan Garnier reaffirms his recommendation for a purchase and a fair value of € 14.9 on Engie after the energy group realized approximately half of its € 15 billion sale program.

"Over the last few weeks we have calculated that the group has sold more than one billion euros of assets, which has been somewhat ignored by the market in our opinion," said the financial intermediary.

If these disposals do not have a significant impact on its estimates or fair value, Bryan Garnier considers that they confirm Engie's strategy and its ability to reach its target of 15 billion in 2018.

"All eyes are now turning to a potential disposal of exploration and production assets, which we believe should pave the way for a significant upgrading of the stock," the broker continued.

[grupo guitarlumber] 09/2/2017 20:51

Cutting Coal Advances Engie To 50% of Divestment Target

French utility giant Engie said February 8 it has now completed its previously announced asset disposals in the US, India and Indonesia, taking it almost to the half-way mark of its 2016-18 €15bn divestment programme announced a year ago. It has now sold assets for €6.9bn.

In the US, Engie has sold 8.7 GW of net thermal generation capacity (8 GW gas and 0.7 GW coal) to a Dynegy-ECP joint venture for an enterprise value of $3.3bn, resulting in a €3bn reduction in Engie's net debt. An earlier sale of US hydro-power assets closed June 2016 also reduced its debt by €1.1bn. Engie retains smaller generation and energy service operations in the US, and a stake in the Cameron LNG project currently under construction.

In Asia, Engie closed the sale of its stakes in two coal-fired power plants, Meenakshi (in India) and Paiton (Indonesia) totaling 3 GW (gross) in 2H2016, resulting in a net debt reduction of €1.5bn. Its 40.5% stake in the 2 GW Paiton plant was sold to Nebras Power and other existing Paiton shareholders, while its entire stake in Meenakasi (0.3 GW installed, 0.7 GW under construction) was sold to Bombay stock exchange-listed India Power Corporation.

Reducing carbon footprint

Engie said its three coal-fired divestments reduced its coal-fired installed generation capacity at end-2016 by 20%, also reducing its carbon footprint.

Engie CEO Isabelle Kocher (Photo credit: Engie)

In an interview last month with the French gas association, Engie CEO Isabelle Kocher said: "Natural gas is ...an element of stability that is absolutely necessary in a low-carbon energy system. Let’s take electricity generation for instance: for it to be decarbonised, we have to replace coal in order to reduce greenhouse-gas emissions and develop renewable energy while guaranteeing network stability. Only natural gas can meet these challenges."

Kocher recalled that, early in 2016, Engie committed to no longer launch any coal-fired projects, to develop renewables and continue gas-fired (CCGT) plants. Engie operates four CCGTs in France – DK6 in Dunkirk, Montoir, plus Cycofos and Combigolfe in Fos-Cavaou – and recently won a €500mn contract to build a 1.3-GW gas-fired power plant in Saudi Arabia.



Mark Smedley

[grupo] 30/1/2017 19:33

Engie closes $1.2 billion deal for Fadhili power plant in Saudi Arabia

January 30, 2017 4:51 pm


French utility firm Engie has said that it has been awarded the contract and achieved financial closing to build a power station at Fadhili in eastern Saudi Arabia.

The greenfield Fadhili independent power project (IPP) is a combined cycled gas power plant with a capacity of 1,507 MW and it will feed oil giant Saudi Aramco’s new gas plant in Jubail Industrial City. It will also supply electricity to 1.1 million households in the country.

Engie expects that the cogeneration plant will be completed by the end of 2019 and when operational, it will also produce 1,447 tons per hour of steam and 768.8 tons per hour of feed water.

Total investment for the project will be $1.2 billion.

Saudi Electricity Company (SEC) will be the off-taker for electricity and Saudi Aramco for the steam and feed water under 20-year purchase agreements, a statement from Engie on Monday said.

The French company will have a 40 per cent equity ownership in the project while SEC and Saudi Aramco Power Holding Company (SAPHCO) will hold 30 per cent each, it said.

At the time of bidding in 2015, Saudi utility firm had said that it will hold 50 per cent of the project and Saudi Aramco will take 10 per cent, while the bid winner would have 40 per cent.

South Korean Doosan Heavy Industries & Construction won the contract for engineering, procurement and construction (EPC) while Siemens will supply the gas turbines.

Scope of work will also include the construction of a 380 kV substation to be transferred to SEC in 2018 for ownership, operation and maintenance, the statement said.

Isabelle Kocher, CEO of Engie said the company has earned a reputation of being a reliable developer and operator of electricity and water facilities in the kingdom over the last years and the award of Fadhili project reaffirms its leading position as independent power producer in the Middle East.

“The Fadhili project is in line with our strategy that aims at concentrating on low CO2 activities via renewable energies and gas for power generation,” she added.

Engie has a portfolio of 30 GW power and more than 1,200 million gallons per day (MIGD) of desalination water production in operation (4.5 millions of cubic meters) in the Gulf Cooperation Council countries.

Together with the Fadhili project, the company currently has four plants in Saudi Arabia.

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AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

[grupo] 30/1/2017 17:18

Published on 30/01/2017 at 14h13

(Boursier.com) - Engie lost 1.7% in a bear market in early afternoon, at 11.05 euros, its lowest level since the beginning of the stock market history of Gaz de France. The dossier weighs only 27 billion euros on the stock market, far from its peaks beyond 90 billion euros in 2008. RBC Capital lowered this morning performance outperformance sector recommendation for a target price reduced from 18 to 12.50 euros. If the record retains 60% of positive recommendations, the average price target declined to 14.33 euros. A year ago, the favorable recommendation rate was 77.8% for an average target of 18.24 euros.