Main content

npower First Half 2017 Results

npower Ltd, the UK energy supplier owned by innogy, today announces its financial results for the first half of 2017.

Highlights

 

  • Adjusted EBIT was down £78m year-on-year (y-o-y) as a result of higher industry costs, which have only been partially offset by our price increase in March;
  • Revenue dropped by £203m from a year ago due to warmer weather and a shift in the customer mix, with nearly half of npower customers now being on fixed tariffs;
  • Domestic customer numbers fell by 120,000 y-o-y due to two very different trends.  In Q1 this year, customer numbers declined as a result of the price increase announcement in February, whereas in Q2 they rose by around 50,000 as customer gains increased.

 

Adjusted EBIT

1H 2017
£M

1H 2016
£M

Change

£M

FY 2016
£M

FY 2015
£M

Change

£M

 

-£11

£67

-£78

-£90

-£99

£9

 

Revenues

1H 2017
£M

1H 2016
£M

Change

£M

FY 2016
£M

FY 2015
£M

Change

£M

 

£3,026

£3,229

-£203

£6,103

£7,025

-£922

 

Customer Accounts

1H 2017

(M)

1H 2016

(M)

Change

(M)

FY 2016

(M)

FY 2015

(M)

Change

(M)

Domestic Total

4.56

4.68

-0.12

4.71

4.77

-0.06

SME Total

0.17

0.19

-0.02

0.18

0.19

-0.01

Industrial & Commercial

0.23

0.23

0.00

0.23

0.22

0.01

 

Paul Coffey, CEO of npower, commented:

“Our Recovery Programme has delivered £120m in actual savings since early 2016 and helped protect our results from some of the cost and earnings pressures affecting large energy companies across the industry. These positive steps are starting to have a real impact on our financial performance.  In the second quarter, we significantly reduced our year-on-year losses compared to the first quarter, but the fact that our first half profit is down from last year shows how serious these challenges are.

“To counter these difficult market conditions, we are making progress in key parts of our business, from costs to customer service and new customer offerings.  Our Recovery Programme is on track to deliver over £200m in savings by the end of 2018. We added new customers every month during the second quarter, acquiring a total of 50,000 new customers on a quarter-on-quarter basis, bucking the broader industry trend seen by many of our competitors.

“Another real sign of momentum is the partnership agreement we signed with Allianz Worldwide Partners last month, which will initially focus on providing boiler and central heating care, and could yield further growth opportunities across a broader range of services.

“Our digital first electricity supplier, Powershop, is at a very exciting stage of development. Since its launch in January 2017, Powershop has already acquired close to 10,000 electricity customers, adding an average of 2,000 new accounts per month since April 2017. This rapid rate of expansion shows just how positively consumers are responding to Powershop’s innovative, digital way of managing their energy costs. This growth trajectory looks set to accelerate further as it launches its dual fuel offering early next year.

“In customer service, we have seen a nearly 20% increase in satisfaction with the service we provide to our domestic customers over the last two years. At the same time, we’re now the second best-performing supplier in terms of number of complaints per 100,000 customers after we achieved the biggest reduction in complaints among the Big 6 suppliers during the second quarter. Although challenges remain, both for our business and even more in our market, there are real signs of progress as we look to adapt our business to meet the evolving needs and habits of energy consumers.”

(ENDS)

For further information please contact the npower press office on 0845 070 2807