Engie is contemplating the sale of its energy plant portfolio in Germany and, in separate information, introduced a constructive finish of 12 months efficiency.
The French power group owns or holds stakes in three onerous coal-fired energy vegetation in Germany. It is the only real proprietor of the 472 MW Zolling web site close to Munich and the 351 MW Farge plant, and has a 52 % stake within the 731 MW web site in Wilhelmshaven.
Insiders informed Reuters the sale might additionally embrace their 800 MW Centrale Rotterdam plant within the Netherlands.
Engie’s Wilhelmshaven plant in Germany is likely one of the most trendy in Europe, with an effectivity stage of 46 %. Switzerland’s BKW Energie has a 33 per cent stake and municipal utility WSW Energie & Wasser owns 15 per cent.
In addition to coal-fired capability, Engie’s Zolling plant has two 25 MW gasoline generators that may be switched on in instances of excessive demand or undersupply to stability out demand swings. Engie additionally operates a 20 MW biomass plant there.
Possible consumers for the belongings might embrace Czech power group EPH and German utility RWE, which have each snapped up typical energy vegetation previously or have introduced plans to take action, the folks stated.
The transfer can be according to Engie’s technique of decreasing publicity to coal, reinvesting proceeds from gross sales of fossil-fuel belongings in renewables and grids because the sector shifts away from typical energy supply.
Sources stated this week the group was huge acquisitions that may generate money, in a method swap following the sale of $18.6bn of belongings which have shrunk its earnings base.
Meanwhile the group stunned the market with a higher-than-expected dividend because it stated a three-year transformation plan was accomplished sooner than anticipated, and the utility additionally swung again into revenue after two years of losses.
“We have accomplished our three-year transformation plan sooner than anticipated, subsequently we’ll enhance our dividend,” Engie chief government Isabelle Kocher stated on an earnings name.
Engie’s 2017 income got here in at $80.6bn, up zero.three per cent on a reported foundation and up 1.7 % on an natural foundation, though income nonetheless stood at its the bottom stage in a decade.
Kocher stated that the shift had turned Engie right into a much less dangerous, cleaner and extra worthwhile firm, with 89 per cent of core earnings contracted or regulated, moderately than uncovered to commodity costs, and 90 % from low-carbon actions.
The firm swung right into a web revenue of EUR1.4bn reversing a EUR400m loss in 2016 and a EUR4.6bn loss in 2015.
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