France's Engie to Exit 20 Countries

French gas and power utility Engie said February 28 that it plans to exit around 20 countries by 2022 as it extends its strategy to focus on renewable energy, services and infrastructure.

The new three-year plan was revealed by CEO Isabelle Kocher during a conference call. The French energy company reported mixed 2018 results the same day, on the back of asset disposals and problems at Belgian nuclear plants.

Engie plans to sell €6bn ($6.8bn) in assets in 2019-22, after agreeing the sale of over €16bn worth of largely coal-based assets under a 2016-2018 plan to reduce commodity exposure and lower carbon intensity. The company will invest up to €12bn under the new plan and target new markets in southeast Asia and Africa with a focus on renewables, networks and services.

For 2018 the French group posted net recurring income of €2.5bn, which was in line with targets and 1.7% higher year on year, but below market expectations. Engie explained in a statement that “positive underlying momentum in growth segments offset … the unfavourable impacts of unscheduled maintenance at Belgian nuclear plants, negative foreign exchange effects and dilution from disposals”.

“We have laid the groundwork for significant shareholder value creation and are building on our achievements to be at the forefront of the second wave of the energy transition, with increasing scale of customer impact,” Kocher stated.