Innogy Writes Down UK npower's value
Innogy, the unbundled networks, renewables and retail company 76.8%-owned by Germany’s RWE, has reported sharply lower net income, largely due to a writedown of its UK business's value.
Net income at Innogy for January-September 2017 was €389mn, 61% less than its €1bn profit in 9M2016. Net debt rose to almost €16bn at end-September 2017, from €15.75bn nine months earlier.
Innogy made a goodwill impairment of €480mn (£427mn) on its npower retail business in Britain, reflecting “tougher regulatory conditions”; it said the planned merger of UK retail activities of npower and SSE in Britain “did not lead to a different assessment of the impairment.”
The competitive landscape in the UK retail business “remains very tough and pressure on margins is very high”, said Innogy, pointing to the process of introducing a price cap for households in Britain.
Group-wide, Innogy said its electricity supply volume was up 8.1% in 9M2017 at 193.1bn kWh, largely thanks to winning new German customers as it lost ground in the UK and Benelux area; its gas sales declined by 4.1% to 153.1bn kWh-gas, as less was sold to households generally.
Adjusted earnings (Ebit) at Innogy's renewables division was down 20% to €194mn "mainly due to below-average wind and precipitation levels [hydro-electric] during the first nine months of the year". German hydro-electric production was 18% lower year on year, according to data released last week.
Centrica extends smart gadgets to Eni's retail arm
British retail energy market leader Centrica, in contrast, announced positive news in Italy, announcing November 14 signature of a five-year partnership arrangement with Eni which has 8mn retail customers in Italy. The partnership will extend Centrica’s ‘Hive’ portfolio of smart gadget and meters for households – already available in the UK, Ireland and North America – to Eni gas e luce customers in Italy. The full range of thermostatic, smart light and other controls will be available to Italian consumers from November 20.
Mark Smedley