Innogy's 9-mo figures as expected, confirms 2016 projections

Innogy SE (ETR:IGY), the new and recently-listed renewables, grids and retail operations unit of RWE AG (ETR:RWE), on Friday reported “very solid figures” for the first nine months of the year that are in line with previous expectations.

The company also confirmed its guidance, published on August 1, for both 2016 and 2017.

Innogy posted a 20.9% drop in attributable net profit for January-September to EUR 1 billion (USD 1.09bn). On an adjusted basis, net profit was EUR 671 million. The company did not give a comparable figure for the adjusted result because it was calculated for the first time based on the final capital structure. It expects adjusted net profit for 2016 to be EUR 1.1 billion.

The company’s nine-month performance:

Innogy noted that earnings in January-September 2015 were impacted positively by one-off effects. Furthermore, this year’s results were particularly affected by additional spending on maintenance of grid infrastructure, especially at home in Germany. An increase in operating depreciation, in part due to the continued expansion of renewables, was mentioned as the reason for the more significant decrease in the operating result compared to that of EBITDA.

Overall, Innogy’s nine-month capital expenditure was down 4% on the prior year’s period at EUR 1.11 billion, with renewables spending halving.

During the nine-month period, the company generated 7.7 billion kWh of renewable power for a 5% year-on-year rise.

(EUR 1.0 = USD 1.088)

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