Innogy's Q1 earnings inch up but not thanks to renewables

Zuidwester wind farm. Image by innogy.com.

Innogy SE (ETR:IGY), the operator of wind and hydro power plants, with separate grid and retail divisions, saw its adjusted EBIT in the first quarter (Q1) of 2017 grow by 6% on the year.

The company, 76.8% owned by RWE AG (ETR:RWE), said today the increase was due to the grid business, where earnings grew thanks to lower operating and maintenance costs. In renewables, however, adjusted earnings before interest and tax (EBIT) were down by 13% because of lower wind levels at the major generation sites and reduced precipitation levels for hydropower plants (HPPs).

Details on Innogy’s performance in the quarter and its confirmed forecast for 2017 are available in the table.

In EUR million unless specified	Q1 2017	Y/Y	2017F	2016
Adjusted EBITDA	1,617	+4%	c4,400	4,203
Adjusted EBIT	1,261	+6%	c2,900	2,735
- of which renewables	134	-13%	c350	359
- of which grid and infra	708	+29%	c1,900	1,708
- of which retail	490	-9%	c850	844
Adjusted net income	684	N/A	over 1,200	1,123

CFO Bernhard Guenther said that Q1 performance was in line with expectations. Capital expenditure was up by 13% to EUR 323 million (USD 352.5m) mainly because of the acquisition of Belectric Solar and Battery GmbH. Net debt increased to EUR 16.6 billion at end-March from EUR 15.7 billion at end-2016.

RWE separately reported group adjusted net income of EUR 689 million, down by 17.8% on the year.

(EUR 1 = USD 1.09)

Choose your newsletter by Renewables Now. Join for free!