German utility innogy has maintained the yearly outlook for the Renewables division’s business performance despite a 20% drop in the department’s Adjusted EBIT in the first three quarters of 2017.
The decline in the adjusted EBIT (Earnings Before Interest & Taxes), from EUR 244 million in the first nine months of 2016 to EUR 194 million in the same period this year, was attributed mainly to below-average wind and precipitation levels and the lack of positive one-off effects reported a year earlier.
Innogy is able to confirm its outlook of EUR 350 million for the full year because it will record a positive effect of EUR 46 million in the fourth quarter from the revaluation of its shares in the Triton Knoll offshore project, the company said.
This revaluation is prompted by the acquisition of Statkraft’s 50 per cent stake in the project, making innogy the sole owner of the 860MW wind farm which secured a Contract for Difference in the last UK auction round.
Looking ahead, the company intends to continue expanding its capacities in the Renewables. The Nordsee One wind farm in the German North Sea is expected to be fully commissioned, generating green electricity at its full capacity, in the fourth quarter of 2017.
Innogy will also be connecting more turbines from the Galloper wind farm off Suffolk, England to the grid.
On the other hand, the negative foreign exchange trend in the United Kingdom and the non-recurrence of positive one-off effects felt last year will have an opposing impact, innogy said, adding that below-average wind and precipitation volumes in the first nine months will have a negative effect on the full year results.