Investors Neglect Engie’s Strong Fundamentals Because of Nuclear Energy Uncertainties

Engie is one of the three largest integrated international European utilities, along with Enel and Iberdrola. Under the tenure of previous CEO Isabelle Kocher, the firm sold EUR 16.5 billion of mostly commodity-exposed assets—E&P, LNG, and coal plants—to focus on regulated, renewables, and client-facing businesses. Kocher was blamed for the lack of visibility of the client-facing businesses and was ousted by the board in 2020. Since then, the firm shifted its strategy to reduce the weight of these activities, leading to the sale of Engie's stake in Suez to Veolia and Equans to Bouygues at attractive prices. On the other hand, Engie increased its annual renewable capacity addition targets from 3 GW to 4 GW between 2022 and 2025 and 6 GW beyond.