Aug 11 (Renewables Now) - Innogy SE (ETR:IGY), the operator of wind and hydropower plants (HPPs) with separate grid and retail divisions, lifted its adjusted EBIT for the first half of 2017 by 4% to some EUR 1.7 billion (USD 2bn).
The company, a unit of RWE AG (ETR:RWE), said today the increase was due to the grid business, where adjusted earnings before interest and tax (EBIT) grew by 19% thanks to lower operating and maintenance costs. In Renewables, EBIT fell by 18% because of 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 divisions saw its adjusted EBIT contract by 8%.
Power generation in the first half declined by 8% to 5.7 billion kWh, including 65% on- and offshore wind and 21% run-of-river and energy storage. There was also some solar and biomass generation and conventional power.
|Results in EUR million||H1 2017||H1 2016||2017 forecast|
|Adjusted net profit||857||740||Over 1,200|
|Net profit to innogy SE shareholders||817||1,080||--|
|Adjusted EBIT||1,725||1,666||About 2,900|
|- of which Renewables||179||219||About 350|
|Adjusted EBITDA||2,439||2,385||About 4,400|
|- of which Renewables||338||376||--|
CEO Peter Terium said the expected 7% year-on-year jump in annual net profit is good news for shareholders, as Innogy’s plan is to continue paying out 70%-80% in dividends.
In the second half of 2017 the company will focus on three topics -- aligning grid infrastructure with the demands of “the energy world of the future”, entering new markets in electricity generation from renewables, with a focus on North America, and expanding its e-mobility business with a goal to turn into a leading solution provider for charging infrastructure in Europe and the USA.
Net debt at the end of June was EUR 17.1 billion, up by some EUR 1.4 billion from end-2016.
(EUR 1 = USD 1.18)