Innogy's adj net profit up by 27%

First turbine installed at Galloper. Source: Twitter, @innogy_uk

November 13 (Renewables Now) - Germany-based Innogy SE (ETR:IGY), the operator of wind and hydropower plants (HPPs) with separate grid and retail divisions, today reported adjusted net profit of EUR 850 million (USD 990m) for the first nine months of 2017.

The result was up by 27% on the year, and the company confirmed its forecast for full-year adjusted net income of over EUR 1.2 billion.

Innogy, a unit of RWE AG (ETR:RWE), reported adjusted earnings before interest and tax (EBIT) of roughly EUR 2 billion, up by 9% on the year. The increase was mainly due to the grid business, where adjusted EBIT rose by 19% to EUR 1.42 billion thanks to lower operating and maintenance costs. Renewables adjusted EBIT, however, was down by 20% to EUR 194 million as onshore wind capacity additions could not offset the below-average wind and precipitation levels and the devaluation of the British pound against the euro. The prior-year Renewables result also included positive one-off effects that did not recur.

The Retail division saw its adjusted EBIT grew by 4% to EUR 570 million.

Renewable power generation in the nine months was down by 10.4% to 6.9 billion kWh, mainly on- and offshore wind, run-of-river hydro and energy storage.

The table contains details on Innogy’s performance in the nine months and its reaffirmed forecast for 2017.

Results in EUR million 9-mo 2017 9-mo 2016 2017 forecast
Adjusted net profit 850 671 over 1,200
Net profit to innogy SE shareholders 389 1,009 N/A
Adjusted EBIT 2,003 1,842 about 2,900
- of which renewables 194 244 about 350
- of which grid & infrastructure 1,424 1,198 about 1,900
- of which retail 570 547 about 850
Adjusted EBITDA 3,075 2,919 about 4,400
- of which renewables 430 480 N/A
- of which grid & infrastructure 2,090 1,864 N/A
- of which retail 709 699 N/A
External revenue 30,792 31,461 N/A

Innogy’s capital expenditure in the period grew by 12% to EUR 1.24 billion mainly because of the acquisition of solar and battery company Belectric. The expansion and modernisation of grid infrastructure remained a key focus of the company’s investing activity. This includes the connection of distributed generation assets, maintenance and expansion of network in relation to the energy transition. Capital was also invested in various onshore wind projects in the UK and Germany.

The company wants to further expand its capacity in the Renewables division. It is bringing several hundred megawatts of offshore wind turbines in service in the coming months. Still, the negative foreign exchange trend in the UK and the non-recurrence of positive one-off effects felt in 2016 will weigh on the segment’s results.

In September Innogy presented its corporate strategy to 2025, as part of which it will aim at a strong market position in photovoltaics (PV), eMobility and glass fibre networks. All activities of the company would address the future energy system, it stressed at the time.

(EUR 1 = USD 1.16)

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