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Innogy misses estimates with FY'18 results, targets lower earnings in 2019

Innogy SE on March 13 posted full-year 2018 adjusted net income of €1.03 billion, or €1.85 per share, compared with €1.22 billion, or €2.20 per share, in the previous year.

The S&P Global Market Intelligence consensus normalized EPS estimate for 2018 was €1.91.

The Essen, Germany-based energy company booked €2.63 billion in full-year adjusted EBIT, a drop from €2.82 billion in 2017. Adjusted EBITDA for the year was down to €4.10 billion, from €4.33 billion in 2017. Both results missed analyst expectations for the year.

Full-year external revenue totaled €36.98 billion in 2018, compared with €43.14 billion in 2017. The company reported free cash flow for the year of €806 million, rising from €733 million in 2017.

Innogy reported a full-year 2018 net loss attributable its shareholders of €653 million, or a rebased loss per share of €1.18, compared with net income attributable to shareholders of €778 million, or rebased earnings per share of €1.40, in 2017.

Looking ahead, the company is targeting adjusted net income of about €850 million and adjusted EBIT of about €2.3 billion for fiscal 2019. The decline is driven by the company's sale of its Czech gas grid business in February and a further drop in earnings at its U.K. retail business due to the introduction of the price cap for standard variable tariffs and higher regulatory costs.

Innogy said it will continue to target a payout ratio between 70% and 80% of its adjusted net income for the dividend. The company's board is expected to propose a dividend of €1.40 per share for the 2018 fiscal year during the annual general meeting in April.