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  • 2.3 %
    Share capital 30/09/2016
  • 754 EUR M
    Market value of investment 30/09/2016
  • 4.1 %
    Voting rights 30/09/2016
  • 0
    Representatives in statutory bodies 30/09/2016
Investment Year 1988 Investment history

Created from the merger between Suez and Gaz de France in 2008, ENGIE covers the entire energy chain, in electricity, natural gas and services. Its acquisition of International Power in 2011 strengthens its leading position in the European and international energy market.

 

GBL and ENGIE

As a long-standing partner of the company, GBL has supported the group’s strategy of building itself up through multiple mergers. After backing the group’s transformation plan aimed at responding to changes in the European energy sector and seizing international growth opportunities, GBL issued in January 2013 bonds exchangeable into ENGIE shares representing 2.3% of the capital and then sold 2.7% of the capital in May 2013.

Performance in 2015

ENGIE reported a turnover of EUR 69.9 billion, down by 8.8% in organic terms compared to 2014. The fall is mainly attributable to the fall in the price of commodities, the contraction in LNG activities and the unavailability or shutdown of certain Belgian nuclear power stations. The group recorded an organic decrease of 9.1% in its EBITDA to EUR 11.3 billion and a decline in its recurring net income of EUR 0.1 billion to EUR 2.6 billion. Following impairment losses of EUR 6.8 billion, the net result, group’s share, stands at EUR -4.6 billion. Despite this difficult context, cash flow generation is up. The increase in net debt of EUR 0.2 billion to EUR 27.7 billion is due in particular to an adverse exchange rate effect.

Outlook

In a particularly weakened environment, the group has decided to accelerate the implementation of the strategy announced two years ago and to launch a three-year transformation plan based on three programmes: portfolio rotation of EUR 15 billion over 2016-2018 to reduce exposure to commodity prices and electric production from coal, EUR 22 billion in investments, including EUR 7 billion for maintenance and at least EUR 500 million in innovation, and an operational cost-reduction programme with a net impact of EUR 1 billion on EBITDA by 2018. This plan enables notably net recurring income, group’s share, of between EUR 2.4 and EUR 2.7 billion to be announced for 2016. This objective is based on EBITDA estimates of between EUR 10.8 and EUR 11.4 billion, excluding the significant impact of the disposals.

ENGIE is confirming a dividend payable in cash of EUR 1 per share for 2015 and 2016, undertakes to pay a dividend of EUR 0.70 per share, per annum for 2017 and 2018, while at the same time retaining a solid financial structure (net debt/EBITDA below or equal to 2.5x and A-rating).

Engie