• Ahead of schedule on the 2016-18 transformation plan: the progress booked on the 3 programs (73% of the portfolio rotation program target reached, 85% of the investments program secured and 90% of the « Lean 2018 » performance program identified) already prepares the new profile of the Group, more innovative, efficient and resilient (the target to reduce merchant exposure to less than 15% of total EBITDA is already achieved1).

• Continued refocusing on the Group’s growth engines which already represent 90% of its EBITDA and register over the semester an organic growth at EBITDA level of 5.4%^[2].

• Dynamic commercial development, marked by an acceleration in the customer solutions activities, with namely a number of acquisitions realised as well as numerous contracts gains, will fuel the Group’s future growth.

• Further reduction in net debt compared to end December 2016, on the back namely of the portfolio rotation program.

• Confirmation of the 2017 annual targets^[9], without change in the accounting of E&P:

                    o a net recurring income Group share between EUR 2.4 and 2.6 billion, expected at mid-range;
                    o a net debt/EBITDA ratio less than or equal to 2.5x and an « A » category rating;
                    o a dividend of EUR 0.70 per share with respect to 2017, paid in cash^[10].

• After taking into account the IFRS 5 treatment related to E&P, the net recurring income, Group share target is based on an indicative EBITDA range of EUR 9.3 to 9.9 billion.

• 2017 interim dividend of EUR 0.35 per share to be paid for fiscal year 2017 on October 13, 2017.  Confirmation of the 2017 annual targets^[9], without change in the accounting of E&P:

During the first half results presentation, Isabelle Kocher, Chief Executive Officer of ENGIE, stated: « The first half of 2017 was marked by a strong commercial dynamic and a very good performance of our growth engines – low carbon generation (renewable and thermal contracted), infrastructures and customer solutions –, which represent today 90% of our EBITDA. These solid and encouraging results are the fruit of the commitment of our teams all over the world. They prove the progress we have made at every level in our 3-year transformation plan. They also allow us to confirm the targets set for 2017 and the Group’s strategic choices to secure its future growth ».

 

Analysis of financial data

 

Revenues of EUR 33.1 billion

 

Revenues increased by 1.6% on a reported basis to EUR 33.1 billion and by 2.6% on an organic basis compared with first half 2016. Adjusted for the unfavorable evolution of temperatures in France, which have been less cold this semester compared to the same period last year, the organic growth amounts to 3.0%. Organic revenue growth was driven by an increase in commodity volumes sold in the midstream gas and LNG business in Europe, an improved performance by the thermal power generation plants in Europe and Australia, the impact of new assets commissioned and price rises in Latin America, and the impact of the 2016 price revisions in the infrastructure business in France. These positive developments were partially offset by a fall in sales of natural gas to BtoC and BtoB customers in France and by a decrease in renewable energy generation in France, mainly hydro.

 

EBITDA of EUR 5.0 billion

 

EBITDA amounted to EUR 5.0 billion, globally stable (-0.1%) on a reported basis but up 4.0% on an organic basis. On this organic basis, EBITDA is driven by the positive impacts of (i) the Lean 2018 performance program, (ii) the sustained performance of the Group’s growth engines, (iii) the commissioning of new assets in Latin America and (iv) a good performance of thermal power generation activities in Europe and Australia. These positive factors were partially offset by the impact of lower renewable energy generation in France, a less favorable temperature effect in France and the shutdown of the Tihange 1 nuclear power plant in Belgium from September 2016 to May 2017. The difference between reported and organic evolution is due on the one hand to negative scope effects, mainly linked to the disposal of merchant power generation assets in the United States in June 2016 and in February 2017, and to the disposal of the Paiton power plant in Indonesia end of 2016, coupled with the recognition in EBITDA of the nuclear contribution in Belgium. On the other hand, foreign exchange rates had a positive impact, mainly due to the appreciation of the Brazilian real and the US dollar against the euro.

EBITDA for North America segment showed a strong organic growth thanks to a good performance from the US retail business coupled with cost savings.

EBITDA for Latin America segment was up sharply due to the commissioning of new assets in Mexico and Peru, price revisions in Mexico and Argentina, and an increase of the contribution in our hydroelectric power activities in Brazil.

EBITDA for Africa / Asia segment was up, driven mainly by the Fadhili power plant contract won in Saudi Arabia, improved gas distribution margins in Thailand, and a good performance from Australian assets due to electricity price increases. These factors were partially offset by lower availability of assets in Thailand and Turkey.

EBITDA for Benelux segment was down mainly due to the non-scheduled shutdown of Tihange 1 from early September 2016 to the end of May 2017, as well as a decrease in electricity sale prices compared with first half 2016. These impacts were partially offset by a good performance in gas and electricity sales activities in Belgium, coupled with cost savings driven by the Lean 2018 program.

EBITDA for France segment declined organically due to a decrease in wind and hydro renewable energy generation and lower volumes and margins in the retail gas business. These impacts were partially offset by higher volumes sold in the retail electricity market and a good performance from the networks activities.

EBITDA for Europe excluding France and Benelux segment was up sharply on an organic basis (16%) due to an improvement in margins captured by the First Hydro power plants in the United Kingdom, favorable weather conditions in Romania and cost savings driven by the Lean 2018 program.

EBITDA for Infrastructures Europe segment increased slightly organically, thanks to the increase in revenues driven by the positive impact of the tariffs increases in transport and distribution activities in France in 2016, partially offset by lower storage capacity sales in France.

EBITDA for Global Energy Management and Global LNG segment was down, mainly due to negative price impacts and difficult gas supply conditions in the south of France during the cold snap in January 2017. This was partially offset by the positive impact of a recent price revision to a long-term LNG supply contract.

EBITDA for the Other segment was up sharply on an organic basis driven mainly by a good performance from gas fired thermal power generation in Europe and from BtoB electricity sales in France.

 

Current Operating Income of EUR 3.0 billion

 

Current operating income^[i] amounted to EUR 3.0 billion, down 4.4% on a reported basis but up 2.5% on an organic basis compared with first half 2016, for the same reasons as those given above for EBITDA. Depreciation expense for the period was higher than the previous year following the three-yearly review of dismantling obligations related to Belgian nuclear power plants at the end of 2016.

 

Net recurring income Group share of EUR 1.5 billion

and net income Group share of EUR 1.3 billion

 

Net recurring income Group share amounted to EUR 1.5 billion, stable compared with first half 2016. It includes EUR 103 million of net recurring income Group share from ENGIE E&P International activities classified in “Discontinued operations”.

Net recurring income Group share relating to continued operations amounted to EUR 1.4 billion for the six months ended June 30, 2017, up 1.1% compared with first half 2016, driven by an improvement in recurring financial result.

Net income Group share amounted to EUR 1.3 billion for first half 2017.

Net income Group share relating to continued operations amounted to EUR 1.3 billion for the six months ended June 30, 2017, stable compared with first half 2016. It includes the negative impacts of fair value adjustments to hedges of commodity purchases and sales, and charges to restructuring provisions, which were partially offset by the positive impacts of (i) a reduction in the cost of debt, (ii) lower impairment losses net of deferred tax than the previous year, and (iii) gains on disposals.

 

Net debt at EUR 22.7 billion

 

Net debt stood at EUR 22.7 billion at June 30, 2017, down EUR 2.1 billion since December 31, 2016, mainly due to cash flow from operations and the impacts of the portfolio rotation program, including the closing of the sale of the thermal merchant power plants portfolio in the United States and in Poland, and the disposal of interests in Opus Energy in the United Kingdom and Petronet LNG in India. These items were partially offset by the gross investments over the period and by the dividends paid to ENGIE SA shareholders and to non-controlling interests.

 

Cash Flow From Operations (CFFO) amounted to EUR 3.5 billion, down EUR 1.1 billion compared with the six months ended June 30, 2016. This evolution includes robust operating cash flow, but was adversely impacted by higher restructuring costs, dispute settlements and a lower change in working capital due mainly to trends in gas inventories in France as temperatures were milder than in first-half 2016.

 

At June 30, 2017, the net debt (excluding internal E&P debt) to EBITDA ratio came out at 2.20, in line with the target of a ratio lower than or equal to 2.5x. The average cost of gross debt reaches 2.65%, slightly down since end of December 2016.

 

At end June 2017, the Group posted a high level of liquidity of EUR 19.5 billion, of which EUR 11.4 billion was held in cash.

 

In April 2017, S&P rating agency confirmed ENGIE´s long term credit rating of A- with negative outlook. In June 2017, Moody´s rating agency confirmed ENGIE´s long term credit rating of A2 with stable outlook.

 

Significant progress on transformation plan

 

The transformation plan keeps progressing at a very sustained rhythm.

 

On the portfolio rotation program (EUR 15 billion net debt impact targeted over 2016-18), ENGIE has announced to date EUR 11 billion of disposals (i.e. 73% of total program), of which EUR 8.0 billion already accounted for at June 30, 2017. On May 11, 2017 ENGIE entered into exclusive negotiations for the sale of its 70% interests in Exploration & Production International (“EPI”); it is a major milestone in the Group´s transformation plan that contributes to significantly reduce the share of activities exposed to commodity prices in its EBITDA.

 

On the investments program (EUR 14 billion growth capex over 2016-18, excluding E&P capex), around EUR 12 billion are already committed, of which EUR 6.4 billion were invested by end of June 2017. In particular, ENGIE carried out acquisitions in customer solutions activities: Keepmoat Regeneration (UK leading provider of buildings regeneration services for local authorities) and EV Box (largest European electric vehicle charging player) in March; 100% of La Compagnie du Vent and a 30% stake in Unisun (Chinese solar photovoltaic company) in April; Icomera (Swedish company leader in onboard communication solutions for public transport) in May. In June, the Group announced the acquisition of a 40% stake in Tabreed, leader in district cooling in the Middle East (operation not yet closed).

 

As regards the Lean 2018 performance plan (EUR 1.2 billion of savings by 2018), more than EUR 0.7 billion of net gains were already recorded at EBITDA level by June 30, 2017 (cumulated impact since the beginning of the program), which is in line with the target of a cumulated impact of EUR 0.85 billion at end 2017.

 

Significant events

Develop low CO₂ power generation activities

 

From January, 1^st to June, 30^th 2017:

• Construction in Indonesia of the first ENGIE geothermal power generation plant in the world;
• Fadhili independent power project awarded in Saudi Arabia;
• Announcement of the closing of asset disposals in the United States and in Asia;
• Nearly 78 MW of photovoltaic projects won in France, strengthening ENGIE´s leading position in photovoltaic solar in the country;
• Acquisition of 100% of La Compagnie du Vent;
• 338 MW solar project won in India;
• In China, 30% equity investment through capital increase in UNISUN, a solar photovoltaic (PV) company;
• ENGIE and EDPR bidding in the third offshore wind call for tenders in Dunkirk;
• Successful issuance of a second Green Bond of EUR 1.5 billion;
• Transfer to Toshiba of ENGIE’s 40% stake in NuGen project in the UK;
• Mexican Ministry of Energy awards three geothermal exploration permits: a key step forward for ENGIE and Reykjavik Geothermal.

 

Develop global networks, mainly gas

 

From January, 1^st to June, 30^th 2017:

• SUEZ, ENGIE and CHRYSO join forces for the 1^st industrial processing of liquefied biomethane issued from used waters in France;
• Signing of a financing agreement for Nord Stream 2;
• Ship-to-ship LNG bunkering service started in the port of Zeebrugge.

 

Since July, 1^st 2017:

• On July, 18^th 2017, ENGIE, Société d’Infrastructures Gazières (“SIG”, held by CNP Assurances and Caisse des Dépôts) and GRTgaz have signed the acquisition of Elengy (a wholly-owned subsidiary of ENGIE operating LNG terminals) at 100% by GRTgaz (the French natural gas transmission operator, owned 75% by ENGIE and 25% by SIG).

 

Develop integrated solutions for its clients

 

From January, 1^st to June, 30^th 2017:

• Collaboration with Schneider Electric to digitize the energy sector;
• Acquisition of Keepmoat Regeneration, which enables ENGIE to become the leading provider of regeneration services for local authorities in the United Kingdom;
• ENGIE signed up to the capital increase of SUEZ in the context of its acquisition of GE Waters & Process Technologies, to the extent of its stake in SUEZ, namely around EUR 244 million;
• Acceleration of the installation of Natural Gas Vehicles (NGV) stations, with the opening of more than 20 new stations in France over the coming twelve months;
• Acquisition of EV-Box, the largest European electric vehicle charging player;
• 100% of the projects presented in the context of the auction of the French energy regulation Commission on photovoltaic self-consumption have been won by ENGIE;
• ENGIE has been chosen by the shipyard MV Werften for the construction of 2 XXL cruise ships;
• ENGIE and Axium secure 50-year comprehensive energy management contract with the Ohio State University in the United States;
• ENGIE launched its home energy (B2C) business in the United Kingdom;
• Acquisition of Icomera, specialist of onboard communications solutions for public transport;
• ENGIE announced the acquisition of a 40% stake in Tabreed from Mubadala and becomes worldwide leader of independent district cooling;
• ENGIE wins major contract with Transport for London.

 

Since July, 1^st 2017:

• Carrefour and ENGIE join forces to develop biomethane in France.

The presentation of H1 results and the half year financial report, including the management report, consolidated financial statements and notes, are available on our website :

Income statement and cash flow statement data for the six months to June 30, 2016 have been restated following the classification of ENGIE E&P International as “Discontinued operations” on May 11, 2017 (see Note 2.1.1 “Plan to divest the exploration-production business” to the interim condensed consolidated financial statements). A reconciliation of the reported data with the restated comparative data is presented in Note 12 ”Restatement of 2016 comparative data” to the interim condensed consolidated financial statements.

Download the press release

[i] Including share in net income of associates.

[1] E&P disposal taken into account.

[2] Unaudited figure.

[3] Belgian nuclear contribution now included in EBITDA.

[4] Excluding forex and scope.

[5] Including share in net income of associates.

[6] Excluding restructuring costs, MtM, impairments, disposals, other non-recurring items, including financial and fiscal ones, and associated tax impacts

[7] Excluding restructuring costs, MtM, impairments, disposals, other non-recurring items, including financial and fiscal ones, and associated tax impacts.

[8] Cash Flow From Operations (CFFO) = Free Cash Flow before maintenance capex.

[9] These targets assume average weather conditions in France, full pass through of supply costs in French regulated gas tariffs, and unchanged Group accounting principles for supply and logistic gas contracts no significant regulatory and macro-economic changes, commodity price assumptions based on market conditions as of December 31^st, 2016 for the non-hedged part of the production, and average foreign exchange rates as follows for 2017: €/$: 1.07; €/BRL: 3.54. These financial objectives include the impact of the Belgian nuclear contribution on EBITDA and do not consider significant impacts on disposals not yet announced as at March 2^nd, 2017 (date of annual results publication).

[10] The Board of Directors has decided the payment of an interim dividend of EUR 0.35 per share for 2017, which will be paid on October 13^th.

[11] Including share in net income of associates.

As part of the second solar bidding session organized by the French Energy Regulatory Commission (CRE4-2), ENGIE, through its subsidiaries ENGIE Green, La Compagnie du Vent, CNR and Solairedirect, has been awarded 10 photovoltaic projects in France, representing 94.59 MW of installed capacity out of the 500 MW that were auctioned. This success consolidates ENGIE’s leading position in photovoltaics in France with an installed and construction capacity of more than 600 MW. ENGIE won nearly 180 MW in the first two CRE sessions.

The selected projects have all been developed in consultation with local stakeholders and will make a priority use of local providers. They will solely be located on non-agricultural and mostly degraded lands.

The success of ENGIE reflects the quality of its offers and the competitiveness of the Group. It also shows the ability of ENGIE to develop projects on the whole territory ¹ and on all families (on the ground and photovoltaic power plant shade structure).

In particular, the important success (25 MW) in the “photovoltaic power plant shade structure” family, following the Walon Rivesaltes innovative project, reflects ENGIE’s ambition to accelerate the development of this type of facilities, which have a very limited space needs on the ground.

As France prepares to triple its solar capacity by 2023, ENGIE wants to accelerate and improve its market share, aiming to reach 2.2 GW by 2021.

Already a leader in solar, ENGIE is also the onshore wind power leader in France, with an installed capacity of 1,730 MW, and first in hydraulic power with 3,820 MW of installed capacity on December 31, 2016.

Download the press release

 

ENGIE will build and operate the Sainshand wind farm in Mongolia, its first renewable project in the country, located in the Gobi desert. This project, which is the third privately financed farm in Mongolia, will support the government’s objective to evolve towards a greener economy and a better environment. A USD 120 million project financing package has recently been signed by a group of international investors and financial institutions to develop the project.

The Sainshand wind farm will have a total installed capacity of 55 MW and will provide the equivalent of the electricity consumption of 130,000 people in Mongolia. Construction – which will be overseen by Tractebel, ENGIE’s engineering arm – will start this summer, with commissioning of the plant in the second half of 2018.

Once operational, the farm will make a significant contribution to reducing Mongolia’s carbon emissions and cater for expected increased power demand in the country. The scheme will enlarge Mongolia’s renewable energy capacity and help the government to achieve its goal of renewable energy representing 20% by 2020 and 30% of all power by 2030.

Paul Maguire, CEO of ENGIE Asia-Pacific, said: “ENGIE’s ambition is to provide energy access-for-all through clean and renewable energy sources, especially to developing communities. Mongolia is facing an energy challenge due to increasing demand from industrialization and urbanization. As our first renewable energy project in Mongolia, ENGIE’s investment in the Sainshand wind farm is consistent with our vision of leading the global energy transition, and the drive for decarbonisation will significantly contribute to powering the country’s energy needs in a sustainable way.”

The Sainshand wind farm, located 450 km south-east of Ulaanbaatar nearby the Sainshand City, capital of Dornogobi Province, will boost the local and national economy through job creation, fiscal contributions and the supply of clean energy.

The project has been developed in consultation with local communities and a detailed environmental impact assessment has been approved by the relevant national authorities. Financing has been agreed following preparation of a comprehensive environmental and social management system compliant with international standards such those of the EBRD, EIB, International Finance Corporation (IFC) and the Equator Principles.

The ENGIE Group is the largest independent electricity producer in the world with 112.7 GW of installed capacities, of which 20% from renewables. It aims to reach a 25% contribution from renewables to its global energy generation portfolio in 2020.

Download the press release

ENGIE wishes to accompany the sale of shares launched this evening by the French State as part of its share buyback program authorized by the General Meeting of May 12, 2017 and therefore undertook to acquire, concurrently to the placement with institutional investors through an accelerated bookbuilding process and subject to its realization, 11.1 million of its own shares (i.e. 0.46% of the capital of ENGIE).

The acquisition of its own shares by ENGIE will occur at the price per share that will result from the accelerated institutional placement procedure implemented by the French State.

These shares will be allocated to employee savings schemes planned by the Group to involve employees as much as possible in the transformation of the Group, which will also limit the dilution associated with this type of transaction.

Download the press release

ENGIE, via its subsidiary ENDEL has announced its acquisition of CNN MCO, a French company specializing in the maintenance, management, and upkeep of all types of naval vessels. The acquisition is part of ENGIE’s transformation strategy, strengthening the Group’s portfolio of B-to-B services and solutions.

CNN MCO is a subsidiary of La Compagnie Nationale de Navigation (CNN) created in 2008 to handle maintenance and logistical support for various types of naval vessels (fast ships, patrol boats, survey and ocean vessels, etc.). CNN MCO applies cutting-edge expertise developed within the context of a ship owner culture and covering technical consulting, safety procedures, parts shipping, and expert interventions. Whether at berth, in a dry dock, or even during a voyage, the company can perform any type of maintenance or repairs.

The Brest-based company (located in Finistère Department) is maintaining the operational readiness of 50 vessels belonging to the French navy and customs office. More broadly, its activities cover a wide variety of units within the French national navy, foreign navies, private ship owner fleets.

Acquiring CNN MCO reinforces ENGIE’s operational expertise and capacity to operate on an international level and makes it the second-ranked company France in the field of marine operational readiness. The transaction has also enhanced the Group’s ability to contribute to the international reputation of French industry.

ENDEL ENGIE, the French leader in industrial maintenance, has 140 locations and operating areas, mainly in France, with more than 5,600 employees and over 2,500 customers. Its ambition is to be the gold standard for industrial services in environments with the strictest safety and quality requirements. Its strategy is based on four priorities: tripling its business in the process industries; guaranteeing its customers’ operating performance; providing innovative solutions for design, production, and maintenance; and exporting its cutting-edge expertise to benefit its customers.

CNN MCO is part of this strategy and opens the way to other significant acquisitions.

ENGIE, through its subsidiaries ENDEL ENGIE, ENGIE Axima, ENGIE Cofely, and ENGIE Ineo, already possesses advanced and complementary expertise in the marine sector, often in meeting the needs of shared clients. Their respective fields of expertise are well known and include the installation and maintenance of HVAC and refrigeration equipment in new construction; security, telecommunications, and logistical assistance systems designed for defense; and operational readiness for military vessels, including providing maintenance services for buildings on land and ships at berth.

Download the press release

The ENGIE group, via its subsidiary ENGIE AXIMA, has announced start of exclusive negotiations to buy MCI, French specialist in industrial and commercial refrigeration. The transaction will require prior authorization from the French competition regulator.

ENGIE Axima is one of the French leaders in the climate control and fire protection sector. The ENGIE Group subsidiary, which provides B-to-B services, designs innovative solutions to support optimal and sustainable energy performance for buildings. ENGIE Axima has a workforce of approximately 7,500 and generated more than €1.3 billion in revenue in 2016.

MCI designs, installs, maintains, and renovates commercial and industrial refrigeration and climate control solutions throughout France. It currently has some 1,100 employees and posted revenue of nearly €179 million in 2016.

This transaction, which reflects the Group’s strategy for growth in services, will enable ENGIE Axima to support the transformation of the refrigeration market, including evolving regulatory and environmental requirements as well as the rise of digital technologies in the profession.

Download the press release

On the occasion of the official visit of the French President Emmanuel Macron to Greece, the ENGIE Foundation has signed an agreement with the Greek National Opera to sponsor the access of opera productions to underprivileged children.

The signature of the agreement took place in the presence of Gérard Mestrallet, Chairman of the ENGIE Foundation and President of ENGIE, Mr. Athanasios Theodoropoulos, President of the Greek National Opera, Mr. George Daniolos, CEO of ENGIE Hellas and Heron, and Mr. George Kouvaris, President of Heron.

Access to culture for all and support to the underprivileged have always been a priority for the ENGIE Foundation that is based on nearly 20 years of action and demonstrates the social, civic and environmental commitment of the ENGIE Group and its employees. In order to make the right to health, education and culture a reality, the Foundation supports 800 projects of solidarity associations in 25 countries, affecting nearly one million children.

ENGIE has two main activities in Greece: energy services, technical maintenance and facility management services through its subsidiary ENGIE Hellas; power generation (600 MW capacity) and electricity and gas supply through Heron.

In January 2017, ENGIE, through ENGIE Hellas, won its largest contract for total facility management services in Greece: a five-year agreement to provide technical maintenance, energy services, security services, cleaning and waste management and landscaping services for the new Stavros Niarchos Foundation Cultural Center (SNFCC) in Athens, where the Greek National Opera is located. 

Download the press release

Download the press release

Note de bas de page

¹http://www.gov.uk/government/collections/electricity-market-reform-contracts-for-difference

• Siemens Gamesa Renewable Energy has taken the decision to stop producing the 8-MW AD8 turbines designed by Adwen, which were supposed to be installed at the Yeu–Noirmoutier Islands and Dieppe–Le Tréport offshore wind farms. The company is now offering its 8-MW D8 turbine for the project.
• The French Ministry of Ecological and Solidary Transition has approved the change in turbine.
• Siemens Gamesa Renewable Energy will uphold Adwen’s industrial commitments in France.

Adwen—now wholly owned by the new entity Siemens Gamesa Renewable Energy—notified Eoliennes en Mer, a company set up by ENGIE (47%), EDP Renewables (43%) and Caisse des Dépôts (10%), of its decision to stop producing the AD8-180 turbine. This model was initially meant to be used in the Yeu–Noirmoutier Islands and Dieppe–Le Tréport offshore wind-farm projects, which the consortium won in 2014. Siemens Gamesa Renewable Energy then decided to focus its production on the D8 model.

The companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands submitted this change to the Ministry of Ecological and Solidary Transition for approval. The Ministry approved Siemens’ D8 technology for the project, after consulting with the French Energy Regulator (CRE).

Siemens Gamesa Renewable Energy will also uphold the industrial commitments of its subsidiary Adwen. On 21 March 2017, Adwen submitted permit applications for blade and nacelle production plants, which will be set up in Le Havre and will create 750 direct jobs. In addition, the decision of the consortium and its turbine supplier to use local manufacturers will help mobilise 750 additional jobs.

Since the approval of the project, the companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands have been working to develop two offshore wind farms. Each farm has a total output of 496 MW and the commissioning is expected in 2021. The companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands submitted its applications for authorisation to the government in May 2017, in accordance with the timetable outlined in the specifications of the call for bids. ENGIE, EDP Renewables and Caisse des Dépôts are committed to the success of this local project, and they all share the same goal: to support the emergence of offshore wind power production in France.

Download the press release

The Abraaj Group (“Abraaj” or the “Group”), a leading investor operating in growth markets, and ENGIE, a leading multinational utility company and the largest global independent power producer, announced today a partnership to build a wind platform in India (the “Platform”).

Together, Abraaj and ENGIE have identified a robust pipeline of wind power projects representing over 1 GW in several key states. By leveraging Abraaj’s clean energy sector expertise and ENGIE’s operational experience, the partnership will address a large and growing demand for clean energy from the Indian Government as well as businesses in India.

The Indian renewable energy sector continues to grow rapidly, underpinned by an increasing demand for power. Power consumption in India is expected to grow at 9% year-on-year until 2020. The Indian government’s target of 60 GW of wind power capacity by 2022 will require a near doubling of the current installed capacity of 32 GW over the next five years.

Commenting on the partnership, Saad Zaman, Partner at The Abraaj Group,said:: “The Indian renewables sector has seen strong growth in recent times and we expect demand for power across the country will continue to increase. In line with our commitment to addressing the Sustainable Development Goals, our partnership with ENGIE marks Abraaj’s second investment in the clean energy sector in India. Buoyed by a strong regulatory framework, the renewables sector is a significant long-term, sustainable investment opportunity for Abraaj. Wind power generation today is approaching grid parity and offers a competitive solution to lower average power pool prices. There is a real opportunity to enhance renewable energy generation in India and we are delighted to be working with ENGIE to deliver affordable and clean power to the country.”

Sébastien Arbola, CEO of ENGIE Middle East, South & Central Asia and Turkey, commented: “ENGIE is pleased to partner with Abraaj and work closely with its teams to share our business practices and skills. Energy demand is growing tremendously in India, and ENGIE is investing in green energy sources as part of supporting the country with its sustainable development plans. Indeed, the Platform is fully in line with our commitment: provide clean and renewable energy for all.”

The Abraaj Group has comprehensive investment experience in the energy sector and has invested over US$ 1 billion in 10 projects globally. In 2015, Abraaj partnered with the Aditya Birla Group to build a 1 GW scale solar energy platform in India, and in 2017, acquired a majority stake in Jhimpir Power, a 50 megawatt wind power project in the Jhimpir wind corridor in Southeast Pakistan.

The ENGIE Group is the largest independent electricity producer in the world with 112.7 GW of installed capacity, of which 20% is from renewables. The development of wind power projects is one of ENGIE’s priorities. It is now the largest wind power producer in France and Belgium and an international leader with 4,553 MW installed throughout the world.

With a presence of more than two decades in India, ENGIE has a diverse set of activities in the country. Through its parent company and subsidiaries, ENGIE is active there in power transmission and distribution, gas pipeline and city gas distribution sectors (through its engineering/infrastructure consulting business), and solar PV with 800 MW of capacity in operation, construction and advanced development. It has also made its first entry into the distributed energy segment in the country.

Download the press release

To support its ambitious development strategy in renewable energies and energy efficiency, ENGIE issued yesterday its third Green Bond for a total of €1.25 billion. With this transaction, the total amount of bonds issued by ENGIE in Green Bond format since 2014 reaches €5.25bn, confirming the Group’s commitment to play a leading role in the energy transition whilst supporting the development of the green finance.

The proceeds of this bond will be used to finance the Group’s growth in renewable energy or energy efficiency projects, and in natural resources preservation projects, as well as R&D investments in such areas and equity participations in projects of the social impact ENGIE fund “Rassembleurs d’Energies”.

As reminder, the method and criteria pertaining to the funds allocation process are defined in a “Framework” designed for the green bond issuances of the Group and available on the website of the issuer. The issue was made with the support of an unqualified Second Party Opinion delivered by Vigeo Eiris agency and published on ENGIE website.

The Green Bond comes with two tranches: a long 5-year and 5-month totaling €500 million with a 0.375% annual coupon, and a long 11-year and 5-month of €750 million with a 1.375% annual coupon.

In addition, a third tranche of €750 million, 20-year maturity and a coupon of 2% was issued, for general purpose.

With an average duration of 13.1 years and an average coupon of 1.36%, the Group takes advantage of the currently favorable rate environment to lengthen the duration of its debt at very attractive conditions.

Download the press release

The farm, that went into service in June 2017, covers an area of over 180 hectares.

Thanks to its 300,000 solar panels and its 50 electricity transformer stations on the 2 sites of Vallongue (88.5ha) and Coteau du Rousset (92.7ha), it will produce 128 GWh per year, equivalent to the electricity consumption of around 85,000 people (excluding heating).

With a capacity of 82 MW, it will also avoid the equivalent of 50,000 tonnes of CO₂ per year to be released into the atmosphere.

ENGIE is the leader in the sector in France with total operated gross installed capacity of nearly 900 MW.

Whereas France plans to triple its solar capacity by 2023, ENGIE is aiming to increase its market share still further with an installed capacity target of 2.2 GW by 2021.

Download the press release

During the auction held yesterday by the Brazilian Federal Government, ENGIE won concession contracts for two hydropower plants (HPP) for a total amount of around EUR950 million (BRL3.531 billion):

• Jaguara HPP, located in Rio Grande (between the states of Minas Gerais and São Paulo), with a 424 MW installed capacity.
• Miranda HPP, located in Rio Aragui, in Indianápolis (Minas Gerais State), with a 408 MW installed capacity.

The concession contracts are signed for a 30-year period. They raise the installed capacity of ENGIE from 10,290 MW to 11,122 MW and reinforce ENGIE’s position as the largest private energy producer in Brazil.

“These contracts are a tremendous success that represent a great growth opportunity for ENGIE, in line with the Group ambition to develop low carbon power production. These two plants have a strategic location for ENGIE’s growth as they are in the Southeast region where we already have other plants and activities”, said ENGIE Brazil CEO, Maurício Bähr.

With 3,000 employees and an installed capacity of more than 11 GW, ENGIE is the largest private power producer in Brazil. 90% of the Group’s installed capacity in the country come from clean, renewable sources, with low emissions of greenhouse gases. This low carbon dynamic has been reinforced by the construction of new wind farms in the Northeast and by the operation of one of the largest hydropower plants in Brazil, Jirau (3,750 MW), located in the Madeira River, Rondônia.

The Group is also present in Brazil in the solar distributed generation market and offers services related to energy efficiency, engineering and integration of systems working on the development of telecommunication and security systems, public lighting and urban mobility for smart cities.

Download the press release

Gas4Sea partners – ENGIE, Mitsubishi Corporation and NYK - have been selected by Norwegian multinational energy group Statoil to be their LNG marine fuel supplier in the port of Rotterdam, in the Netherlands, for four crude shuttle tankers.

The four planned dual fuel vessels are to come into service in early 2020; they will be operated by Statoil in Northern European seas.

Gas4Sea will supply LNG using the ENGIE Zeebrugge which started operations earlier this year. She is currently performing regular ship-to-ship LNG bunkering services in the port of Zeebrugge, in Belgium.

LNG Bunkering vessel (LBV) ENGIE Zeebrugge holds an LNG capacity of 5,000 m³ and is designed to serve a full range of shipping customers, in Zeebrugge as well as neighbouring ports.

Gas4Sea is a commercial brand jointly launched by ENGIE, Mitsubishi Corporation and NYK in 2016 to develop the use of LNG as a sustainable, reliable, safe and cost-effective alternative to conventional oil-based marine fuels. Its purpose and ambition is to accompany the shipping sector in the upcoming transition towards a greener maritime environment, in Europe and worldwide. 

Download the press release

ENGIE and Fenix announce that they have agreed on a transaction in which ENGIE will acquire 100% of Fenix International¹, a next generation energy company, offering Solar Home Systems (SHS) in Africa. Founded in 2009, Fenix employs 350 people and has its main activities in Uganda where it is the leading SHS player with more than 140,000 customers. Fenix recently expanded into Zambia and plans further roll-outs in other countries across Africa. Fenix will be the first SHS company to join a major worldwide energy company, which puts the fight against climate change and energy access at the very center of its purpose.

Bruno Bensasson, CEO of ENGIE Africa: “We believe that combining the strengths of ENGIE, a global energy player and Fenix, a successful company with very strong customer focus, high-quality products and an experienced team anchored in the heart of Sub-Saharan Africa, will enable faster deployment of SHS to the large African population still lacking access to electricity. Fenix will be the agile growth engine for ENGIE’s SHS business in Africa and enable us to become a leading profitable off-grid energy services company on the continent, reaching millions of customers by 2020. We do believe that universal access is now reachable in a foreseeable future by the combination of national grids extension, local micro-grids and solar home systems, depending on the local characteristics of the energy demand.”

Lyndsay Handler, CEO of Fenix International: “Fenix and ENGIE share the belief that universal access to energy is possible and paramount. To date, Fenix has delivered reliable solar power to over 900,000 people in East Africa. By joining forces with ENGIE – one of the world’s largest independent utility companies with a firm commitment to a decentralized, decarbonized and digital energy revolution – we will greatly accelerate the path to our vision.” She added: “Our values and our team will remain at the core of Fenix. We will continue to relentlessly pursue an exceptional customer experience in all we do and we will invest even more in building a great team with a strong culture. Together with ENGIE’s ambitions, experience, talent and long-term investments, we will deliver affordable power and other life-changing products to customers across Africa and make universal access to modern energy a reality.“

Over 600 million people lack access to modern energy in Africa. Rapid improvement of photovoltaic, battery storage technologies and mobile payment platforms make it possible for companies to offer affordable, reliable and expandable solar home systems. Fenix‘s flagship product, ReadyPay Power, provides lighting, phone charging and power for TVs and radios. The technology is offered on a lease-to-own basis so that off-grid customers can finance their power system through micro instalments over mobile money. Fenix uses the financing of the solar home system to build a credit score for each customer which can then be used to power and finance other life-changing products and services from Fenix.

This investment will contribute to ENGIE’s goal of providing 20 million people around the world with access to decarbonized, decentralized energy by 2020, using the latest digital technologies. Fenix’s strength within the home solar market in Africa will play a strategic part in the realisation of this goal, given the number of households that off-grid solar is expected to reach over the coming years. The World Bank has estimated that up to 99 million households, more than a third of those that are off-grid, will rely on home solar by 2020, with the market growing fastest in Africa ².

¹ Closing of the transaction will happen once all approvals of the relevant regulatory bodies are received.

² The Off Grid Solar Market Trends Report 2016, The World Bank and Bloomberg New Energy Finance (BNEF), click here to know more.

Download the press release

Following recent media speculation, ENGIE confirms it has launched a strategic review of its upstream and midstream LNG activities (liquefaction, transport and international trading of LNG). Its downstream LNG activities, such as regasification and LNG ex-terminal sales, are not part of the review.

At this stage, there can be no certainty as to whether the discussions with the counterparties, including Total, will lead to any agreement.

Any agreement would have to be approved by the relevant governance bodies and the relevant employee representative bodies would have to be consulted.

Download the press release

On the occasion of the official visit of the French President Emmanuel Macron to Greece, the ENGIE Foundation has signed an agreement with the Greek National Opera to sponsor the access of opera productions to underprivileged children.

The signature of the agreement took place in the presence of Gérard Mestrallet, Chairman of the ENGIE Foundation and President of ENGIE, Mr. Athanasios Theodoropoulos, President of the Greek National Opera, Mr. George Daniolos, CEO of ENGIE Hellas and Heron, and Mr. George Kouvaris, President of Heron.

Access to culture for all and support to the underprivileged have always been a priority for the ENGIE Foundation that is based on nearly 20 years of action and demonstrates the social, civic and environmental commitment of the ENGIE Group and its employees. In order to make the right to health, education and culture a reality, the Foundation supports 800 projects of solidarity associations in 25 countries, affecting nearly one million children.

ENGIE has two main activities in Greece: energy services, technical maintenance and facility management services through its subsidiary ENGIE Hellas; power generation (600 MW capacity) and electricity and gas supply through Heron.

In January 2017, ENGIE, through ENGIE Hellas, won its largest contract for total facility management services in Greece: a five-year agreement to provide technical maintenance, energy services, security services, cleaning and waste management and landscaping services for the new Stavros Niarchos Foundation Cultural Center (SNFCC) in Athens, where the Greek National Opera is located. 

Download the press release

Download the press release

Note de bas de page

¹http://www.gov.uk/government/collections/electricity-market-reform-contracts-for-difference

• Siemens Gamesa Renewable Energy has taken the decision to stop producing the 8-MW AD8 turbines designed by Adwen, which were supposed to be installed at the Yeu–Noirmoutier Islands and Dieppe–Le Tréport offshore wind farms. The company is now offering its 8-MW D8 turbine for the project.
• The French Ministry of Ecological and Solidary Transition has approved the change in turbine.
• Siemens Gamesa Renewable Energy will uphold Adwen’s industrial commitments in France.

Adwen—now wholly owned by the new entity Siemens Gamesa Renewable Energy—notified Eoliennes en Mer, a company set up by ENGIE (47%), EDP Renewables (43%) and Caisse des Dépôts (10%), of its decision to stop producing the AD8-180 turbine. This model was initially meant to be used in the Yeu–Noirmoutier Islands and Dieppe–Le Tréport offshore wind-farm projects, which the consortium won in 2014. Siemens Gamesa Renewable Energy then decided to focus its production on the D8 model.

The companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands submitted this change to the Ministry of Ecological and Solidary Transition for approval. The Ministry approved Siemens’ D8 technology for the project, after consulting with the French Energy Regulator (CRE).

Siemens Gamesa Renewable Energy will also uphold the industrial commitments of its subsidiary Adwen. On 21 March 2017, Adwen submitted permit applications for blade and nacelle production plants, which will be set up in Le Havre and will create 750 direct jobs. In addition, the decision of the consortium and its turbine supplier to use local manufacturers will help mobilise 750 additional jobs.

Since the approval of the project, the companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands have been working to develop two offshore wind farms. Each farm has a total output of 496 MW and the commissioning is expected in 2021. The companies Eoliennes en Mer Dieppe – Le Tréport and Eoliennes en Mer Yeu and Noirmoutier Islands submitted its applications for authorisation to the government in May 2017, in accordance with the timetable outlined in the specifications of the call for bids. ENGIE, EDP Renewables and Caisse des Dépôts are committed to the success of this local project, and they all share the same goal: to support the emergence of offshore wind power production in France.

Download the press release

The Abraaj Group (“Abraaj” or the “Group”), a leading investor operating in growth markets, and ENGIE, a leading multinational utility company and the largest global independent power producer, announced today a partnership to build a wind platform in India (the “Platform”).

Together, Abraaj and ENGIE have identified a robust pipeline of wind power projects representing over 1 GW in several key states. By leveraging Abraaj’s clean energy sector expertise and ENGIE’s operational experience, the partnership will address a large and growing demand for clean energy from the Indian Government as well as businesses in India.

The Indian renewable energy sector continues to grow rapidly, underpinned by an increasing demand for power. Power consumption in India is expected to grow at 9% year-on-year until 2020. The Indian government’s target of 60 GW of wind power capacity by 2022 will require a near doubling of the current installed capacity of 32 GW over the next five years.

Commenting on the partnership, Saad Zaman, Partner at The Abraaj Group,said:: “The Indian renewables sector has seen strong growth in recent times and we expect demand for power across the country will continue to increase. In line with our commitment to addressing the Sustainable Development Goals, our partnership with ENGIE marks Abraaj’s second investment in the clean energy sector in India. Buoyed by a strong regulatory framework, the renewables sector is a significant long-term, sustainable investment opportunity for Abraaj. Wind power generation today is approaching grid parity and offers a competitive solution to lower average power pool prices. There is a real opportunity to enhance renewable energy generation in India and we are delighted to be working with ENGIE to deliver affordable and clean power to the country.”

Sébastien Arbola, CEO of ENGIE Middle East, South & Central Asia and Turkey, commented: “ENGIE is pleased to partner with Abraaj and work closely with its teams to share our business practices and skills. Energy demand is growing tremendously in India, and ENGIE is investing in green energy sources as part of supporting the country with its sustainable development plans. Indeed, the Platform is fully in line with our commitment: provide clean and renewable energy for all.”

The Abraaj Group has comprehensive investment experience in the energy sector and has invested over US$ 1 billion in 10 projects globally. In 2015, Abraaj partnered with the Aditya Birla Group to build a 1 GW scale solar energy platform in India, and in 2017, acquired a majority stake in Jhimpir Power, a 50 megawatt wind power project in the Jhimpir wind corridor in Southeast Pakistan.

The ENGIE Group is the largest independent electricity producer in the world with 112.7 GW of installed capacity, of which 20% is from renewables. The development of wind power projects is one of ENGIE’s priorities. It is now the largest wind power producer in France and Belgium and an international leader with 4,553 MW installed throughout the world.

With a presence of more than two decades in India, ENGIE has a diverse set of activities in the country. Through its parent company and subsidiaries, ENGIE is active there in power transmission and distribution, gas pipeline and city gas distribution sectors (through its engineering/infrastructure consulting business), and solar PV with 800 MW of capacity in operation, construction and advanced development. It has also made its first entry into the distributed energy segment in the country.

Download the press release