French utility Engie is considering a widespread restructuring with between 10bn to 20bn euros worth of disposals under Isabelle Kocher, the incoming chief executive. People close to the group told the FT that Ms Kocher will try to accelerate the company’s move away from thermal energy and mature markets in Europe, instead putting greater emphasis on renewables and emerging markets. This could involve the French group selling much of its exploration and production assets, thermal power generation plants in United States and coal-fired power plants, all of which should yield about 10bn euros added these people. Alongside those plans there is a likely initial public offering of Engie’s Belgian unit Electrabel, as well as the sale of other non-core assets, which could yield another 5bn to 10bn euros over the next three years. The strategy of shifting into renewables and high-growth markets is not new for Engie. Gerard Mestrallet, the long-time chief executive of the group, has had the same approach in recent years. However, Ms Kocher will be looking to go faster than her predecessor, said people close to the group, in part to stamp her authority on the company.
FT 14th Feb 2016 read more »