Engie S.A.

Overview Key strengths Key risks Large global integrated utility, with significant business and geographic diversity and reported EBITDA of €13.7 billion in 2022. High exposure to gas (power generation, networks, midstream and supply, together more than 40% of EBITDA) with an evolving role in the energy transition. About 30% of 2023-2025 EBITDA from purely regulated gas infrastructure (transmission, distribution, storage, and Liquified Natural Gas [LNG] terminals), mainly in France, with a very supportive regulatory framework, contributing to cash flow predictability. Exposure to more volatile energy trading activities of Engie's Global Energy Management&Sales (GEMS) (approximately 18% of EBITDA in 2022) and a diminishing contribution from purely regulated earnings in the mix (30% in 2023-2025 from 40% in 2021) while

...We expect Engie's large scale and integrated and diversified business mix will remain key strengths amid the group's green transition. Engie is Europe's third-largest utility based on its 12.7 billion 2022 S&P Global Ratings-adjusted EBITDA, close to Iberdrola's 12.4 billion and smaller than EDF's and ENEL's, at about 17 billion each. It is within the top three based on its generation installed capacity with 100 GW as of year-end 2022 (full consolidation, or 64 GW in percentage of consolidation) compared with EDF's 117 GW, Enel's 85 GW, and Iberdrola's 61 GW. Engie's generation mix includes thermal (mostly gas 45.1 GW--in percentage of consolidation as of June 2023--and some residual 2.1 GW coal), hydro (24.7 GW), wind (13.5 GW, mostly onshore), solar (3.7 GW), nuclear (1.3 GW), and biomass and biogas plants. The company is geographically well diversified across 30 countries, primarily France (41% of 2022 EBITDA, excluding its trading business line GEMS), the rest of Europe (35%) and Latin...

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