Oddo maintains its 'outperform' rating on Engie, with a slightly reduced price target from 17.5 euros to 17 euros.

At the end of December, the CPN (Commission des provisions nucléaires) asked Engie to increase its provisions for decommissioning and long-term management of nuclear fuel by E3.3 billion, compared with an initial proposal of E900 million, reports the broker, which has finally retained E2 billion in its assumptions at this stage.

The analyst's office points out that a forum provided an opportunity to return to the question of extending the lifespan of the two Belgian nuclear power plants. On this subject, "the prospects of an agreement seem to be falling into place", says Oddi, which points out that Engie wishes to place these plants and the extension capex on an equal footing in a JV with the Belgian federal state.

"For 2022, the Group will recognize in Q4 2022 the retroactive impact of infra-marginal taxes on nuclear power for an estimated amount of ME500. For 2023, an additional charge of 700 ME is expected, which leads us to lower our estimates for the nuclear division', concludes Oddo.

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