Engie, the world’s biggest non state-owned electricity group by sales, said it had booked €3.8bn worth of impairments in 2016 due to low power prices as the group reported a fall in full-year operating profit. Under chief executive Isabelle Kocher, who took over a year ago, the company has promised to sell as much as €15bn of assets in a bid to reshape the business and reduce its exposure to unregulated gas and power markets in the US and Europe. Ms Kocher plans to use much of the cash from the €15bn asset sales to expand in the areas where prices are regulated. She plans to invest in renewable energy, gas networks, gas storage and LNG terminals as well as in energy services such as heating and cooling networks. Engie said the impairments for 2016 included €1.9bn related to power production in Europe, €1bn for the revision of its nuclear decommissioning provisions in Belgium and €600m related to the market environment on some of its global businesses. The company also announced on Thursday the £330m acquisition of UK company Keepmoat Regeneration.
FT 2nd March 2017 read more »
House builder Keepmoat has signed an agreement to sell its regeneration arm to French energy services giant ENGIE for £330m. The £800m turnover Keepmoat regeneration business has long-term relationships with more than 170 local councils and many of the largest housing associations. In the UK, ENGIE employs 17,000 people and is a major provider of property services and energy management, including district heating, to local authorities and businesses. Wilfrid Petrie, CEO of ENGIE in the UK & Ireland, said: “ENGIE aims to be the number one partner for cities and places in the UK and with the Keepmoat regeneration business we are extending and deepening our relationships with local authorities right across the country. “By combining our energy expertise with an expanded services capability we can make a bigger impact, as we help to improve the lives of the communities we serve. “Today, buildings account for 30% of UK carbon emissions and our investment in Keepmoat underlines our long-term commitment to the UK as it transitions to a lower carbon economy.”
Construction Enquirer 2nd March 2017 read more »
France’s Engie booked a multi-million euro writedown today due to low power prices and high nuclear costs, but investors remain confident in the firm’s overhaul strategy. The firm also today agreed to acquire the regeneration business of Keepmoat for £330m. Keepmoat is the UK’s leading provider of regeneration services specialising in refurbishing buildings.
City AM 2nd March 2017 read more »