Innogy Considers Further Cost Cutting After CEO Departure

Innogy SE (IGY.XE) is reviewing possibilities to further cut costs following the departure of its chief executive officer in December.

The executive board is examining the potential for further reductions, the German renewables company said on Tuesday, adding that it will provide more information with the publication of its full-year results on March 12.

In December, Innogy's chief executive Peter Terium resigned following a profit warning.

Innogy also confirmed its target leverage factor--which assesses the ability of a company to meet its financial obligations--of around 4.0 times net debt to adjusted earnings before interest, taxes, depreciation and amortization and a payout ratio--the proportion of earnings paid out as dividends--between 70% and 80% of adjusted net income.

The company said its 2018 to 2020 investment program was subject to Innogy's financing capacity and investment framework.

Innogy said it will focus investments on its core activities in renewables, grid and infrastructure, as well as retail segments, but added that e-mobility, broadband and solar were also attractive growth areas.

"We are fully aware of the importance the capital market attributes to a stable and attractive dividend and reasonable leverage," said Bernhard Guenther, chief financial officer.

Innogy was created by spinning off RWE AG's (RWE.XE) renewable-energy business into a separate entity.

Write to Max Bernhard at; @mxbernhard

(END) Dow Jones Newswires

January 02, 2018 13:14 ET (18:14 GMT)