Innogy 'on target' as grids growth offsets renewable output dip

Renewables-focused German utility Innogy said it was “right on target” after its financial first half despite taking a weather-related generation hit, and named growth in the US renewables sector as one of its key priorities for the rest of the year.

Innogy confirmed its full-year financial expectations as adjusted net profit rose 16% year-on-year in the January to June period, reaching €857m ($1bn).

The strong first-half performance was mainly driven by the group’s grid division, with pre-tax profits at its renewables segment down 18% in the first half as lower wind and rainfall hit Innogy’s output from its turbine and hydro fleets.

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The company saw an 8% fall in generation, telling investors the first half had again highlighted the significance of weather conditions to renewables output.

But CEO Peter Terium said the overall picture was positive for Innogy, spun out of parent utility RWE in 2015.

Terium said: “We are staying on course, as promised: innogy is all about stable business and value-added growth.”

He said solar growth following the acquisition of Belectric and an increased focus on storage are among the company’s priorities.

Terium added: “ We are tapping into new markets in the area of electricity generation from renewables, with a particular focus on North America. And we are expanding our good starting position in e-mobility, as we aim to become a leading solution provider for charging infrastructure in Europe and the US.”

Those growth ambitions had spurred a 9% year-on-year increase in investments to €700m in the first half, the Innogy CEO said.