Innogy to spend 1.2 billion euro on e-mobility, solar, glass fibre

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

FRANKFURT (Reuters) - Innogy, Germany’s largest energy group by market value, will spend up to 1.2 billion euros ($1.4 billion) on e-mobility, photovoltaics and glass fibre networks by 2019, it said in a statement on Thursday.

Having been carved out from parent RWE and separately listed on the stock exchange last year, Innogy now focuses on gas and power networks, renewables and energy retail. RWE still holds a 76.8 percent stake.

A spokeswoman said that the 1.2 billion euro figure is included in Innogy’s existing investment plan, under which it will spend 6.5-7.0 billion euros in the 2017-2019 period.

Laying out details of its corporate strategy, Innogy also said it would strengthen its portfolio via acquisitions and divestments, adding it would dispose of units where it is not leading in terms of market share and margins by 2025.

“In the long run, having a positive figure on the bottom line is no longer sufficient for a business segment. If we want to be viable in the future as a company, we need to be among the best,” Chief Executive Peter Terium said in a statement.

Terium, who swapped his job as RWE CEO for that at Innogy after the latter’s successful carve-out last year, said there would be no taboos with regard as to how that might be achieved.

Reporting by Christoph Steitz; Editing by Arno Schuetze and Victoria Bryan