Earnings in the renewables division at German utility Innogy fell during the first nine months of 2017, amid lower water levels at hydroelectric power stations and the non-recurrence of one-off gains from the sale of small run-of-river power stations in Germany.
The depreciation of the British pound versus the euro also had a negative impact.
Adjusted earnings before interest and taxes (Ebit) fell 20.5% to €194m ($225.9m) in the first nine months compared to the year-earlier period.
Power output from several new onshore wind parks in the Netherlands, the UK and Germany, as well as an improved utilisation of offshore wind generation were not able to fully compensate for the negative impacts from hydro and foreign exchange.
The utility nevertheless continues to expand its capacities in renewable energy, and expects to fully commission the Nordsee One offshore wind farm near the German North Sea island of Juist at full capacity during the fourth quarter.
Innogy will also be connecting more and more turbines from the Galloper offshore wind farm off the coast of Suffolk, England, to the grid.
For the full company, Innogy posted a rise in Ebit to €2bn in the first nine months, from €1.84 in the first nine months of 2016, helped by lower expenses for operating and maintaining grids in Germany, and cost reductions in the retail division.
The utility’s adjusted net income rose to €850m in the first nine months of 2017, compared to €671m in the year-earlier period. Next to a rise in the Ebit of grids and retail, the result was helped by an improvement in the adjusted financial result due to improved net interest.
Innogy has confirmed its full-year outlook for an adjusted net income of more than €1.2bn that will include a positive effect of €46m in the fourth quarter from the revaluation of its shares in the Triton Knoll offshore project. This revaluation is prompted by the acquisition of Statkraft’s 50% stake in the project.
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