Engie is an industrial group, based in France, active in the fields of gas, electricity, energy services and the environment. Co. is an energy provider across the entire energy chain, in electricity and in natural gas, including: purchase, production and commercialization of natural gas and electricity; transport, distribution, management and development of major natural gas infrastructures; design and commercialization of energy services and environment-related services. Co.'s activities are conducted through five segments: Energy Europe, Energy International, Global Gas and LNG, Infrastructures, and Energy Services.
  • TickerGSZ
  • ISINFR0010208488
  • ExchangeEuronext Paris
  • SectorGas, Water & Multi-utilities
  • CountryFrance

Analysts

Sylvain Goyon

Carrefour : Lancement de notre liste Oddo Convictions Large Cap

Nous lançons notre liste de convictions Large Cap. Nous la plaçons sous le signe de la qualité, en privilégiant si possible les structures bilancielles peu endettées, et de la visibilité. Par visibilité, nous entendons la capacité à défendre la génération de free cash-flow, que ce soit par le biais d’un positionnement concurrentiel fort (pricing power) et/ou via l’existence de programmes de rationalisation/ optimisation portés par un management disposant d’un track record éprouvé...

ING
Nadège Tillier

Green bonds/There is no such thing as perfect green

The financial markets registered an equivalent of €93bn of new issued self-labelled green bonds in 2018. The volume is slightly lower than in 2017 that saw the amount of new green bonds reaching over the €100bn bar (c.€105bn). However, we expect 2019 to be another strong year driven by financial institutions and political initiatives. For investors, there is still the expectation of a more diversified green bond market. Looking at corporates (excluding financial institutions), Utilities still dominate issuance by far. We expect (inaugural) green bonds from other corporates belonging to other s...

Pierre-Antoine Chazal

ENGIE: Status-quo regarding Suez’s stake, Les Echos said | BUY | EUR15,5

ENGIE - BUY | EUR15,5(+28%) Status-quo regarding Suez’s stake, Les Echos said Status-quo regarding Engie’s stake in Suez Further cooperation may be envisaged in some specific areas We are not really surprised by such a status-quo… …yet, some may have bet on an imminent outcome: negative for Suez

Tancrede Fulop

Morningstar | Backdrop Improvement Should Drive a Reduction of Engie's Valuation Discount to the Sector

Engie is one of the three largest diversified international European utilities, along with Enel and Iberdrola. CEO Isabelle Kocher, who was appointed in 2016, has completed a EUR 15 billion asset-rotation program that drove the reduction of commodity-exposed activities--notably E&P, LNG, and coal plants--to focus on regulated, renewables, and client-facing businesses. This strategy has a sound strategic rationale, as it reduces earnings volatility and reduces commodity-exposed activities that are typically not moaty with low returns on capital. Still, the disposal of E&P and LNG in 2017 was no...

Tancrede Fulop

Backdrop Improvement Should Drive a Reduction of Engie's Valuation Discount to the Sector

We reiterate our EUR 15.50 fair value estimate and our no-moat, stable moat trend ratings after Engie released nine-month results in line with expectations and stated that it will reach the bottom end of its net income guidance, in line with our expectations. Shares are undervalued despite solid fundamentals. CMD due in February 2019 will bring more visibility on strategy and capital allocation. EBITDA came in at EUR 6.5 billion, up by 5% organically and flattish on a reported basis. On the posi...

Pierre-Antoine Chazal

Engie (Buy, FV EUR15.5) said to weigh offer for all or part of EDP Renovaveis

ENGIE: (BUY, Fair Value EUR15,5 (+19%)) Engie (Buy, FV EUR15.5) said to weigh offer for all or part of EDP Renovaveis (Neutral, FV EUR7.5) According to Bloomberg, Engie (Buy, FV EUR15.5) is among suitors considering a bid for all or part of EDP Renovaveis (Neutral, FV EUR7.5). Despite an increase balance sheet flexibility following the recent disposal of its 69% stake in Glow, we would consider the option of Engie teaming up with CTG as more likely with Engie potentially acquiring only part of current EDPR’s portfolio as we believe that 1/Belgian nuclear provisions remain a sword of Damocles f...

Sylvain Goyon

Carrefour : Lancement de notre liste Oddo Convictions Large Cap

Nous lançons notre liste de convictions Large Cap. Nous la plaçons sous le signe de la qualité, en privilégiant si possible les structures bilancielles peu endettées, et de la visibilité. Par visibilité, nous entendons la capacité à défendre la génération de free cash-flow, que ce soit par le biais d’un positionnement concurrentiel fort (pricing power) et/ou via l’existence de programmes de rationalisation/ optimisation portés par un management disposant d’un track record éprouvé...

Pierre-Antoine Chazal

ENGIE: Status-quo regarding Suez’s stake, Les Echos said | BUY | EUR15,5

ENGIE - BUY | EUR15,5(+28%) Status-quo regarding Suez’s stake, Les Echos said Status-quo regarding Engie’s stake in Suez Further cooperation may be envisaged in some specific areas We are not really surprised by such a status-quo… …yet, some may have bet on an imminent outcome: negative for Suez

Tancrede Fulop

Morningstar | Backdrop Improvement Should Drive a Reduction of Engie's Valuation Discount to the Sector

Engie is one of the three largest diversified international European utilities, along with Enel and Iberdrola. CEO Isabelle Kocher, who was appointed in 2016, has completed a EUR 15 billion asset-rotation program that drove the reduction of commodity-exposed activities--notably E&P, LNG, and coal plants--to focus on regulated, renewables, and client-facing businesses. This strategy has a sound strategic rationale, as it reduces earnings volatility and reduces commodity-exposed activities that are typically not moaty with low returns on capital. Still, the disposal of E&P and LNG in 2017 was no...

Tancrede Fulop

Backdrop Improvement Should Drive a Reduction of Engie's Valuation Discount to the Sector

We reiterate our EUR 15.50 fair value estimate and our no-moat, stable moat trend ratings after Engie released nine-month results in line with expectations and stated that it will reach the bottom end of its net income guidance, in line with our expectations. Shares are undervalued despite solid fundamentals. CMD due in February 2019 will bring more visibility on strategy and capital allocation. EBITDA came in at EUR 6.5 billion, up by 5% organically and flattish on a reported basis. On the posi...

Louis Boujard ...
  • Philippe Ourpatian

ENGIE : Waiting for the CMD…

>Many questions and little certainty ahead of the CMD - Following the road show that we organised with Engie's IR teams, we think that investors are still preoccupied with two subjects: 1) the future of nuclear energy in Belgium; and 2) external growth scenarios. In our view, Engie’s current valuation underestimates the group's sensitivity to the rebound in energy prices in Europe and is continuing to suffer from uncertainty about nuclear energy and M&A.N...

Jean Sassus ...
  • Johanna Jourdain
  • Louis Boujard
  • Martial Descoutures
  • Matthias Desmarais
  • Olfa Taamallah
  • Philippe Ourpatian
  • Pierre Corby
  • Steven Gould
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 11/21/2018

While Dassault Aviation is capitalising on the upturn in the business jet market, we think that the market does not value this business and may even attribute a negative value to it. The still favourable trend in defence and the stronger dollar are also support factors. Upside is enough to move to a Buy recommendation, with a target price unchanged at € 1,800. Cf company research published yesterday evening. - - ...

Jean Sassus ...
  • Johanna Jourdain
  • Louis Boujard
  • Martial Descoutures
  • Matthias Desmarais
  • Olfa Taamallah
  • Philippe Ourpatian
  • Pierre Corby
  • Steven Gould
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 21/11/2018

Alors que Dassault Aviation bénéficie de la reprise du marché du jet d’affaires, nous estimons que le marché ne valorise pas cette activité, voire lui donne une valeur négative. La Défense toujours bien orientée et le dollar plus fort sont également des facteurs de soutien. Le potentiel de hausse est suffisant pour passer à l’Achat avec un objectif inchangé à 1 800 €. Cf étude publiée hier soir. - ...

Alex Koagne ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Anis Zgaya
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Jerôme Bodin
  • Johanna Jourdain
  • Laurence Hofmann
  • Léopold Authié
  • Louis Boujard
  • Martial Descoutures
  • Matthias Desmarais
  • Philippe Ourpatian
  • Pierre Corby
  • Samantha Jeary
  • Steven Gould
  • Sven Edelfelt
  • Virginie Rousseau
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 11/08/2018

A few weeks after the French government officially mandated advisers to work on EDF’s “architecture”, we provide an update on the main scenarios and their financial consequences. Our status-quo approach gives a valuation of between € 18.0 (+20%) and € 19.2 (+28%), depending on the outcome of the Multiannual Energy Plan (MEP). Under alternative scenarios, with total regulation of the nuclear sector or segregation of nuclear power, our valuation ranges from € 22.5 (+50%) to € 24.0 (+71%...

Alex Koagne ...
  • Alexandre Iatrides
  • Alfred Glaser
  • Anis Zgaya
  • Charles Lepetitpas
  • Delphine Brault
  • Emmanuel Matot
  • François Maury
  • Georges Dieng
  • Jean Sassus
  • Jerôme Bodin
  • Johanna Jourdain
  • Laurence Hofmann
  • Léopold Authié
  • Louis Boujard
  • Martial Descoutures
  • Matthias Desmarais
  • Philippe Ourpatian
  • Pierre Corby
  • Roland Pfaender
  • Samantha Jeary
  • Steven Gould
  • Sven Edelfelt
  • Virginie Rousseau
  • Yan Derocles

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 08/11/2018

Quelques semaines après que l’Etat ait officiellement mandaté des conseils pour travailler sur « l’architecture d’EDF », nous revenons sur les principales hypothèses d’évolution et leurs conséquences financières. Notre approche statu quo nous amène à une valorisation du titre entre 18.0 € (+20%) et 19.2 € (+28%), en fonction de la PPE, tandis que les hypothèses alternatives, avec régulation totale du nucléaire ou sanctuarisation du nucléaire, la porterait entre 22.5 € (+50%) et 24.0 €...

Anis Zgaya ...
  • Khaled Ben Amor
  • Louis Boujard, CFA

ODDO : Le retournement du cycle est confirmé

Nos hypothèses de fin 2017 se sont confirmées avec une hausse moyenne des prix de l’électricité de 4 à 6€/MWh (entre 10 et 15%), mais nous voyons une divergence dans la contribution des sous-segments par rapport à nos hypothèses initiales. Ces évolutions plus favorables nous amènent à maintenir un biais positif sur le secteur avec une préférence pour les énergéticiens sensibles au prix de marché. EDF, Engie et Verbund restent à l’Achat avec des OC relevés ; RWE voit sa recommanda...

Engie

Engie

Engie

Engie

Engie

ING
Nadège Tillier

Green bonds/There is no such thing as perfect green

The financial markets registered an equivalent of €93bn of new issued self-labelled green bonds in 2018. The volume is slightly lower than in 2017 that saw the amount of new green bonds reaching over the €100bn bar (c.€105bn). However, we expect 2019 to be another strong year driven by financial institutions and political initiatives. For investors, there is still the expectation of a more diversified green bond market. Looking at corporates (excluding financial institutions), Utilities still dominate issuance by far. We expect (inaugural) green bonds from other corporates belonging to other s...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Unilever, a.s.r., Royal Dutch, Engie and Orsted

Consumers: • Unilever (UNANA) has trumped other contenders in the contest to buy GlaxoSmithKline's Health Food Drinks portfolio in India, Bangladesh and 20 other countries in a deal that we view as credit neutral. The main part of the transaction involves Unilever's listed subsidiary Hindustan Unilever Limited (HUL) merging with publicly listed GSK Consumer Healthcare India in an all-equity deal. Due to the relatively small cash component of the deal (c.€639m), which is partly offset by the consolidation of GSK India, which has a net cash position of €457m according to Bloomberg data, we calcu...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier

Coffee, Croissants & Credit/Engie, Total SA

According to financial newspaper l'Agefi, , Engie (ENGIFP) will start looking at growth opportunities in the short term. The company's transformation plan is coming to an end with almost all its objectives already executed. Engie's CEO, Isabelle Kosher, acknowledged the fact that the French Utility was monitoring the situation between EDP (EDPPL) and China Three Gorges (YANTZE).

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier

Coffee, Croissants & Credit/Telefónica, Telecom Italia, Engie, Credit Suisse

Telefónica (TELEFO) has won the rights to broadcast LaLiga soccer matches in the residential market. For the 3 seasons covering 2019 to 2022, the company pays €980m for each of the seasons. COO Angel Vila previously indicated the company would be very rational when bidding for soccer rights, based on a strict cost/benefit analysis. For instance with respect to the Champions League rights, he indicated earlier that there was a distinct possibility that Telefónica would not renew the contract if the price is too high. Spread neutral.

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier

Coffee, Croissants & Credit/Telecom Italia open to deal with Open Fiber

Telecom Italia (TITIM) is open to a combination of its fixed network with Open Fiber, according to CEO Amos Genish cited by multiple media sources. A next step would depend on Cassa Depositi e Prestiti (CDP), whose management is being reshuffled following the recent change of government, according to Reuters. Furthermore, TI is not interested in merging its entire network, as it would be difficult to for the enlarged entity to get a Regulated Asset Base status, according to the newswire. CDP is a shareholder in Telecom Italia and co-owns Open Fiber.

Engie SA (ENGI) - Power - Deals and Alliances Profile

Summary Engie S.A. (Engie), formerly GDF Suez S.A., is an electric utility, which generates and distributes electricity and natural gas. It generates electricity using various sources including hydro, wind, solar, biomass, geothermal, nuclear, coal and fuel oil. The company supplies, distributes, trades, and sells natural gas and liquefied natural gas. Engie also offers energy services including facility management, engineering and energy infrastructure projects, IT systems, and decentralized energy supply services for natural gas, biogas, power and heating. Engie operates urban cooling and h...

Engie SA (ENGI) - Oil & Gas - Deals and Alliances Profile

Summary Engie S.A. (Engie), formerly GDF Suez S.A., is an electric utility, which generates and distributes electricity and natural gas. It generates electricity using various sources including hydro, wind, solar, biomass, geothermal, nuclear, coal and fuel oil. The company supplies, distributes, trades, and sells natural gas and liquefied natural gas. Engie also offers energy services including facility management, engineering and energy infrastructure projects, IT systems, and decentralized energy supply services for natural gas, biogas, power and heating. Engie operates urban cooling and h...

Anaïs Dudout

Proxy Report - 18/05/2018

According to regulations adopted in 2014, the French State is required to offer 10% of shares it decides to sell in public companies to the employees of these very same companies. Having reduced its stake in Engie, the State is offering 10% of said shares to employees indirectly. As per resolutions 5 and 6, Engie is requesting authorisation to purchase these shares from the State with the intention of selling them to its employees, at a discount of 20 to 30%. Through such an indirect sale, the State has essentially transferred the costs associated with said discount to the Company, and thereb...

Anaïs Dudout

Proxy Report - 18/05/2018

L'année précédente, la société a décidé de modifier son mode de gouvernance en séparant les fonctions de Directeur Général (incarné par Isabelle Kocher) et de Président : ainsi, Jean-Pierre Clamadieu est nommé au conseil pour en prendre la tête à la place de Gérard Mestrallet. Proxinvest félicite la société pour la pérénité des fonctions. La société présente la particularité de demander plusieurs fois les mêmes autorisations finaicères d'augmentation du capital, à la différence près que certaines sont autorissables en période d'offre publiques et d'autres non. Proxinvest s'opposera donc à cel...

Charles Pinel

Etude de l'AG du 12/05/2017

Engie registered a loss of € 415 M in 2016 against a loss of loss of € 4,6 billion in 2015, as assets impairments were € 3,8 billion against € 8,7 billion in 2015. In such a context, the approval of a dividend of € 1.00 per share seems to be guided by the priorities of the main shareholder of the group. Therefore, we recommend that shareholders oppose resolution 3.Four resolutions are dedicated to the executive compensation. Although Isabelle Kocher's compensation is better structured and balanced than Gérard Mestrallet's compensation and shows an improvement in transparency and balancing as w...

Charles Pinel

Etude de l'AG du 12/05/2017

Le groupe enregistre une perte nette de 415 M€ en 2016 contre une perte de 4,6 milliards € en 2015, les dépréciations liées à des pertes de valeur s'élevant encore à 3,8 milliards € contre 8,7 milliards € en 2015. Dans un tel contexte, la proposition d'un dividende de 1 € par action semble être guidée par les priorités de l'actionnaire principal davantage que par les intérêts de l'entreprise. Par conséquent, Nous recommandons un vote négatif à la résolution 3. Quatre résolutions portent sur les rémunérations des dirigeants. Bien que la politique de rémunération d'Isabelle Kocher est mieux équi...

Matthieu DRIOL

Short term view - ENGIE : The bounce is gaining strength.

The background trend is clearly bearish. The bounce is gaining strength. It is too early to qualify this market action as a bullish reversal. The background trend would be questioned should prices rise above €13.863.

Matthieu DRIOL

Analyse court terme - ENGIE : Le rebond gagne en vigueur.

La tendance de fond est clairement orientée à la baisse. Le rebond gagne en vigueur. Il est trop tôt pour parler de retournement haussier. La tendance de fond serait remise en cause en cas de franchissement de 13,863 €.

Matthieu DRIOL

Short term view - ENGIE : The movement goes on.

The background trend is clearly bearish. The movement goes on. The next target is at €11.568, then €11.236. Passing €13.863 would question the continuation of the fall.

Matthieu DRIOL

Analyse court terme - ENGIE : Le mouvement se poursuit.

La tendance de fond est clairement orientée à la baisse. Le mouvement se poursuit. Le prochain objectif est à 11,568 €, puis 11,236 €. Le franchissement de 13,863 € remettrait en cause la suite de la baisse.

Jérôme VINERIER

Medium term view - ENGIE : The movement goes on.

The trend is bearish. The movement goes on. The next target is at €11.550, then €11.000. Passing €14.395 would question the continuation of the fall.

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