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German acid attack energy firm holds course amid industry shake-up

Europe
12.03.2018
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Frankfurt (dpa) - Despite facing imminent breakup by its larger rivals Eon and RWE, German energy company Innogy - whose financial director recently had acid thrown in his face - said on Monday it plans to forge ahead with its investment plans.

The company wants to expand its green energy business despite the surprise announcement on Sunday that Eon and RWE wanted to break it up and share out its business areas between them.

Innogy remained tight-lipped about the deal on Monday, with chief executive Uwe Tigges saying merely that he would "give an opinion in due course."

Sunday‘s plan involves Eon first totally acquiring Innogy from its largest shareholder RWE. Eon then plans to sell its combined renewable energy business with Innogy - which will cease to exist - to RWE and focus in future solely on the lucrative energy network business.

In 2017 Innogy‘s earnings before interest and taxes (EBIT) were 2.8 billion euros (3.45 billion dollars), a yearly increase of 3 per cent. The lion‘s share of the earnings - 1.9 billion euros - came from Innogy‘s network business.

Net profits dropped by almost 50 per cent over the year to 778 million euros as a result of a writedown in its British distribution business. Underlying profits were up 9 per cent year on year at 1.2 billion euros.

On Monday Innogy forecast it would achieve net profits of 1.1 billion euros and earnings before interest and taxes (EBIT) of 2.7 billion euros in 2018.

Two as yet unidentified suspects for unknown reasons threw acid in financial director Bernhard Guenther‘s face on March 4 in Dusseldorf.

 

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