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Shares in Innogy plunged 12 per cent on Wednesday after the German energy group reduced its profit forecast for 2017 due to “the persistently difficult market environment in the UK”.
Innogy said its restructuring efforts at npower, the group’s UK retail energy supply business, had not been “sufficient to offset negative market trends”. As a result, it now expected earnings before interest, tax, depreciation and amortisation for the year 2017 to reach only €4.3bn, down from a forecast of €4.4bn. Net profit would still be above €1.2bn, Innogy added.
Innogy was spun out of German energy giant RWE last year. Shares in RWE, which still owns a majority stake in Innogy, also fell more than 12 per cent.