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Innogy, the green energy subsidiary of German utility RWE, said 2016 earnings fell 7 per cent to €4.2bn, partly due to a decline in the amount of electricity it generated as a result of “low wind levels”.
Innogy was formed from the cleaner, greener businesses of RWE – renewables, power grids and retail energy services. Its initial public offering in October raised €4.6bn, making it Germany’s largest flotation since 2000. It is now Germany’s largest energy company by market value.
Innogy said adjusted earnings before interest, taxes, depreciation and amortisation for the year totalled €4.2bn, which it said was within the forecast range of €4.1 to 4.4bn. Revenues were €43.6bn, down 4 per cent year on year. The company announced a dividend of €1.60 per share, and it expected adjusted ebitda of about €4.4bn in 2017.
Peter Terium, Innogy’s chief executive, said:
We promised a lot for 2016, and we have kept those promises … We are proving that Innogy is a stable stock with a strong dividend.
He confirmed that the company would pay out 70 to 80 per cent of adjusted net income as a dividend, and that investors “can expect higher earnings for 2017″.
Earnings were down 18 per cent year-on-year in Innogy’s renewables division due to “low wind levels”. Higher costs associated with the upgrade of its network in Germany led to a 9 per cent decline in earnings in the grid and infrastructure division. Adjusted ebitda increased by 7 per cent in the company’s retail arm – though the UK retail unit – where Innogy trades as npower – recorded another loss.