New wind farms boost E.on's renewables profits

E.on's planned takeover of Innogy is "right on schedule" with the necessary approvals expected later this year, despite an EC investigation into the deal.

by Craig Richard 13 May 2019

E.on commissioned the 400MW Rampion project off the south coast of England in 2018

E.on's Ebit rose 23% year on year to €211 million for the first three months of 2019.

The developer said the increase was primarily due to an increase in output due to the commissioning of the Arkona and Rampion offshore wind farms in Germany and the UK, respectively, and the Stella onshore project in the US.

Ebit from its onshore wind and solar assets decreased 5% year on year to €55 million due to the expiration of support schemes.

Meanwhile, the operating profit from its offshore wind portfolio increased 38% to €156 million.

Asset swap

E.on said it expects to receive all the necessary approvals for its takeover of Innogy in the second half of the year.

Under a complex asset swap deal, E.on will receive an 86.2% stake in Innogy, while RWE will acquire a 16.67% "effective participation" in E.on.

Innogy owner RWE will receive the renewable assets and gas storage business of its subsidiary and E.on, while E.on will only buy Innogy’s grid and retail business.

In February, the European Commission and the German government both approved RWE’s plans to take over E.on and Innogy’s renewables businesses and its planned acquisition of a stake in E.on.

The EC then opened an into whether E.on’s proposed acquisition of Innogy would reduce competition in retail markets in March.

Innogy

Innogy, meanwhile, recorded operating profit (Ebit) of €200 million for its renewables segment in the first quarter – a 29% increase year on year.

This was predominantly caused by higher market prices and slight improvements in weather conditions, as well as earnings from new wind farms, Innogy stated.

It invested €105 million in renewable assets in the period, up 26% year on year.

Investments were primarily made in the 860MW Triton Knoll project, in which Innogy owns a 59% stake, off the east coast of the UK. The utility also invested in onshore wind farms in the United States and the UK, as well as in its 349MW Limondale solar array, which is under construction in Australia.

Innogy’s renewable assets generated 3.3TWh – an increase of 3.1% year on year.