January 2, 2018 / 2:40 PM / a year ago

Germany's Innogy looks for cost cuts after CEO's departure

Innogy logo in Essen, Germany, March 14, 2017. Reuters/Thilo Schmuelgen

FRANKFURT (Reuters) - German energy group Innogy (IGY.DE) is examining potential cost cuts across all parts of its business after its chief executive left in a dispute over the company’s strategy.

Innogy, which was carved out from RWE (RWEG.DE) and listed separately in 2016, also said on Tuesday it would review the funding of growth projects, adding it currently did not see the need for additional equity measures.

“The Innogy Executive Board is currently reviewing discretionary spending across all segments for the potential to deliver further cost reductions,” Innogy said in a statement, adding it will provide further details along with annual results on March 12.

Shares in Innogy and parent company RWE took a beating last month after the networks, renewables and retail energy group forecast a drop in 2018 earnings as it seeks to boost investment.

Chief Executive Peter Terium left less than a week later, with Innogy’s supervisory board saying that while it generally welcomed the corporate and finance strategy of the board it saw the need for greater cost discipline.

Terium has been replaced for now by Uwe Tigges, chief human resources officer, until the supervisory board decides on a permanent successor.

Innogy, whose businesses include the British electricity and gas business npower, employed more than 42,200 people as of the end of September.

The group had said in an investor presentation published in the middle of November that it planned to invest up to 7 billion euros (£6.22 billion) in the 2017-2019 period, with as much as 2 billion being discretionary capital expenditure, mostly in its renewables unit.

It plans to invest up to 10 billion euros in the 2018-2020 period, it said in a presentation in mid-December.

Reporting by Christoph Steitz; Editing by Maria Sheahan/Keith Weir

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below