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Innogy chief leaves with immediate effect days after profit warning

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Innogy has confirmed its chief executive Peter Terium has left the company with immediate effect, just days after it was forced into issuing a profit warning

A statement released this morning said that Uwe Tigges, the firm’s chief human resources officer, would serve as its interim chairman of the management board.

Last week innogy revised its profit guidance downward, confirming it expected to record adjusted EBITDA of €4.3 billion for the current fiscal year instead of the €4.4 billion previously forecast.

Net income was also revised downwards for innogy Group, falling from €1.2 billion to €1.1 billion.

But despite the profit warning the company continued its course for ramped-up investment in new fields, particularly digitisation of its offering, e-mobility and renewable energy.

At the time Terium said the company was a “trailblazer of change” and one that did not “wait to see what happens – we set trends”.  

“High growth ambitions initially come at a price, but pay off in the long run. At the same time, we are making all our divisions fit for the digital future. And that does not come for free, either.

“Even if this will weigh on our earnings short-term, I am convinced that this is the right strategy for setting up innogy optimally for the future – entirely in the interests of our shareholders, customers and employees,” he said.

Innogy all but blamed the profit warning on continuing difficulties within the UK retail power business which is currently in the midst of being spun off through a partnership with SSE.

The company revealed last week that its ongoing restructuring programme was “not sufficient” to offset the negative market effects it had witnessed in the UK and a surge in running costs had also dampened its competitiveness.

But neither innogy or SSE have yet to provide an update on the status of the proposed deal, aside from SSE chief Alistair Phillips-Davies stating in a letter to the Business, Energy and Industrial Strategy select committee that it would bring about a “completely new model” for the UK supplier market

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