Peter Terium, the chief executive of Innogy, has resigned from the German energy group in what seems like a clash regarding strategy, days after a profit warning affected its shares and those of RWE, its majority owner.
The sudden departure of Terium happened less than a week after Innogy slashed its operating profit forecast for this year, citing a persistently challenging market environment for its ailing British electricity and gas supplies business, npower.
It also forecasted a decline in profits for 2018, mainly because of the increased spending on broadband telecoms, energy supply networks, and renewable power generation. Since then, the shares of the company have dropped by 17 percent while those of RWE are down by 18 percent.
In a statement, Innogy stated: “The Supervisory Board generally welcomes the corporate and finance strategy pursued by the Board, but sees the necessity for greater emphasis on cost discipline and a more focused growth and investment strategy.”
According to the announcement last week, capital expenditure was anticipated to increase by over a quarter to more than 3 billion euros ($3.6 billion) in 2018.
Innogy stated that the departure of Terium was the result of a “friendly agreement” with its supervisory board. His employment contract was set to have been effective until the end of March 2021.
Innogy was established out from RWE and listed last year in an effort to separate its networks, renewables and retail businesses from the thermal power plant and energy trading activities of RWE. RWE maintains a 76.8 percent stake in Innogy.
Terium has served as the CEO of RWE prior to taking the same job at Innogy last year. His position will be taken over in the interim by the chief human resources officer, Uwe Tigges, until the supervisory board determines a successor, said Innogy.