innogy and SSE stop negotiations on the planned transaction in Great Britain


  • No agreement on adjustments of the terms for the planned transaction for combining the retail businesses in Great Britain
  • innogy Management Board assesses different options way forward
  • Adjustments on innogy Group’s outlook for fiscal year 2018

innogy SE and SSE plc stopped the negotiations on commercial adjustments for combining their retail businesses in Great Britain as announced in November 2017. The reason for this is that the two parties could not agree on a joint solution for the necessary direct and indirect financial contributions.

Martin Herrmann, COO Retail of innogy SE, explained: “Adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the planned retail company. We negotiated intensively with SSE on adjustments to the transaction as announced in November 2017. Unfortunately, we could not reach an agreement that was acceptable for both sides. We are now assessing the different options for our British retail business.”

Since the third quarter of 2018, innogy has accounted for npower's retail activities as "discontinued operations". As the retail business remains with innogy for the time being, 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 EUR 2,600 million (before: around EUR 2,700 million) on innogy Group level and an adjusted net income of above EUR 1,000 million (before: above EUR 1,100 million). For the Retail division an adjusted EBIT of around EUR 650 million (before: above EUR 700 million) is now expected. No change of the outlook will be made for the other divisions, i.e. Renewables (around EUR 300 million) and Grid & Infrastructure (around EUR 1,950 million) as well as for adjusted financial result (around EUR -750 million) and tax rate to be applied for determination of the adjusted net income (25 to 30 per cent). Based on the target corridor for the dividend payout ratio of 70 to 80 per cent of adjusted net income, that we have applied so far, a dividend for fiscal year 2018 on the same level as last year (EUR 1.60 / 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.