12/17/2018 | 10:36 Europe/Amsterdam
Essen, 17 December 2018 - innogy and SSE could not agree on a joint solution for the necessary direct and indirect financial contributions and therefore stopped the negotiations on commercial adjustments for combining their retail businesses in Great Britain as announced in November 2017.
The British retail business of Npower therefore remains with innogy for the time being. The Board of innogy currently assesses the different options way forward. As a consequence, Npower will be accounted for as continued operations again, which requires adjustments on the Group’s outlook for fiscal year 2018 as communicated in November:
Including Npower, innogy now expects an adjusted EBIT of around 2,600 million Euros (before: around 2,700 million Euros) on innogy Group level and an adjusted net income of above 1,000 million Euros (before: above 1,100 million Euros). For the Retail division an adjusted EBIT of around 650 million Euros (before: above 700 million Euros) is now expected. No change of the outlook will be made for the other divisions, i.e. Renewables (around 300 million Euros) and Grid & Infrastructure (around 1,950 million Euros) as well as for adjusted financial result (around -750 million Euros) and tax rate to be applied for determination of the adjusted net income (25 – 30 %).
Based on the target corridor for the dividend payout ratio of 70 – 80% of adjusted net income, that innogy has applied so far, a dividend for fiscal year 2018 on the same level as last year (1.60 euros / share) would not be possible.
innogy has not yet given an outlook for 2019. From today’s perspective, including Npower in innogy’s Group figures in 2019 would have a negative impact on adjusted EBIT in the area of -250 million Euros.
Responsible person: Dr. Claudia Mayfeld, General Counsel of innogy