Innogy achieves EBIT outlook for 2019, renewables packed to go

Image source: Innogy SE

March 23 (Renewables Now) - Innogy SE (ETR:IGY), the restructured German energy group that is now majority owned by E.on SE (ETR:EOAN), on Monday posted adjusted earnings that were 23% lower than a year earlier but still in line with its amended expectations.

Specifically, Innogy saw its adjusted earnings before interest and tax (EBIT) decrease to EUR 1.615 billion (USD 1.74bn) from EUR 2.1 billion a year back because of regulatory interventions in the British retail business following the introduction of a price cap on standard tariffs, along with intense competitive pressure. Its revised outlook for this key metric was "about EUR 1.6 billion."

More details about the company’s financial performance are available below.

Figures in EUR million 2019 2018
External revenue 35,434 35,181
Adjusted EBITDA 2,900 3,146
Adjusted EBIT 1,615 2,099
Net profit (loss) attributable to shareholders 386 (653)
Adjusted net profit (loss) 427 705

In September, RWE AG (ETR:RWE) sold its majority stake in Innogy to E.on in a complex asset-swap that will see the seller take possession of both Innogy and E.on’s renewable energy activities. As the transfer is yet to be fully concluded, Innogy has bundled the assets it is selling to RWE into a new segment called Divestment Business and marked them as discontinued operations. It should be noted that in addition to renewables, this segment also includes Innogy’s gas storage business and the company’s stake in Austrian energy utility Kelag, along with the remaining business in the Czech Republic, which is being sold separately.

In 2019, Innogy’s discontinued operations generated revenues of about EUR 3.467 billion compared to EUR 3.718 billion a year earlier. Income from discontinued operations was EUR 474 million compared to EUR 320 million.

Innogy’s renewables business includes assets with a total capacity of 3,641 MW, with onshore and offshore wind accounting for 85% of that. The onshore wind portfolio alone amounts to 2,160 MW.

Last year, Innogy registered a 10% rise in renewable power generation to 10.6 billion kWh, which was lower than its predictions as wind levels in the UK fell short of the long-term average.

Throughout the year, Innogy added a total of 74 MW of renewable energy capacity, including the 33-MW Mynydd y Gwair wind farm in Wales and the 27-MW Bad a Cheo wind park in Scotland. The remaining new capacity comes from the 12-MW Tamworth/Tanager solar plant in the US and a couple of small photovoltaic (PV) installations in Germany and Poland.

At year-end, the company was building 449 MW of onshore wind farms, 457 MW of solar power facilities and the 857-MW Triton Knoll offshore wind park in which it has a 59% interest.

(EUR 1.0 = USD 1.076)

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