Electrabel Pays Record €10.4 Billion Dividend to Engie

Electrabel, the Belgian energy subsidiary of French multinational Engie, has distributed €10.4 billion to its parent company in what is being reported as the largest profit distribution ever made from Belgium. The record payout, reported by La Libre Belgique and Belgian financial newspapers L’Echo and De Tijd, follows a complex restructuring that saw €41.5 billion in asset transfers and raises significant questions about capital outflows from Belgium’s energy sector.

The Scale of the Transaction

The €10.4 billion distribution is the culmination of a sweeping corporate restructuring at Electrabel. The company transferred its stakes in International Power and Engie Energy Management — two entities holding non-European energy production assets — to Engie for a total of €41.5 billion. From these proceeds, €11.2 billion was allocated to cover provisions for spent nuclear fuel management, and €13.3 billion was used to repay intra-group debts. The remaining €10.4 billion was distributed to Engie in reserves and share premiums.

The transaction has dramatically reshaped Electrabel’s balance sheet, which shrank from €52.1 billion to €20.5 billion in 2025, according to the company’s annual accounts.

The Phoenix Deal: How It Became Possible

This record distribution was made possible by the “Phoenix deal” — the landmark 2023 agreement between the Belgian government, then led by Prime Minister Alexander De Croo, and Engie. The agreement covered the 10-year extension of the Doel 4 and Tihange 3 nuclear reactors, which had been scheduled for phase-out under Belgium’s nuclear exit law.

Key elements of the Phoenix deal include:

Nuclear waste liability transfer: The Belgian state took on responsibility for nuclear waste management for a fixed amount of €15 billion, paid in two instalments.
Joint venture structure: The two extended reactors are now held in a 50/50 joint venture between the Belgian State and Engie, with a contract-for-difference mechanism for balanced risk sharing.
Removal of asset restrictions: Crucially, the agreement removed restrictions on certain Electrabel assets, enabling the transfer of non-European operations to the parent company.

As Catherine MacGregor, CEO of Engie, stated at the signing of the intermediate agreement in June 2023: “After several months of intense and constructive dialogue with the Belgian government, we are pleased with the signing of this balanced agreement for both parties. It provides ENGIE with the necessary visibility on the total amount related to nuclear waste management and significantly reduces the risks linked to the extension of the two units.”

A Pattern of Capital Outflows

This €10.4 billion distribution is not an isolated event. It follows a €6.2 billion dividend that Electrabel paid to Engie for the 2024 fiscal year, bringing the total capital transferred from Belgium to France to over €16.6 billion in just over a year.

Electrabel, once Belgium’s dominant energy company, was acquired by the French group Suez, which later merged with Gaz de France to form Engie. The company operates Belgium’s nuclear reactors, though Tihange 1 closed in September 2025 and Doel 2 in December 2025. What remains in Electrabel following the restructuring includes the Belgian nuclear park (Doel 4 and Tihange 3), domestic energy activities (batteries, renewables, gas plants, energy supply), and stakes in European assets.

Implications for Belgian Energy Sovereignty

The record dividend has sparked debate about whether the Phoenix deal adequately protected Belgian interests. Critics argue that the Belgian state took on €15 billion in nuclear waste liabilities while simultaneously allowing Engie to extract record profits from its Belgian subsidiary.

Key questions emerging from the transaction include:

Energy investment capacity: With Electrabel’s balance sheet cut by more than half and its non-European assets transferred, what capacity remains for domestic energy investment?
Consumer impact: Will Belgian energy consumers see any benefit from Electrabel’s profitability, or will profits continue to flow to France?
Future of Electrabel: With its core assets now primarily Belgian and European, is Electrabel positioned for long-term growth, or is it being gradually hollowed out?

From Engie’s perspective, the agreement provides certainty on nuclear waste costs while enabling continued nuclear operations in Belgium. The company has characterized the deal as “balanced” and mutually beneficial. The Belgian government has maintained that the agreement secured energy supply through nuclear extension and capped nuclear waste costs at €15 billion.

What to Watch For

The European Commission approved the Phoenix deal in February 2025, and the agreement closed in March 2025 with the first instalment of the nuclear waste payment. The second instalment is due upon the planned restart of Doel 4 and Tihange 3 in November 2025, following their 10-year extension works.

As Belgium digests the implications of this record capital outflow, attention will turn to whether political leaders or regulatory authorities take any action in response. The transaction also raises broader questions about the trend of profits from Belgian subsidiaries flowing to foreign parent companies — a dynamic that may attract increased scrutiny from policymakers in Brussels.

For now, the €10.4 billion distribution stands as a milestone in Belgian corporate history: the largest profit distribution ever made from the country, and a vivid illustration of the financial consequences of the Phoenix deal.