Dong Energy upbeat on offshore wind in 2014 results

DENMARK: Dong Energy CEO Henrik Poulsen said it had been a breakthrough year for the company in terms of offshore wind, highlighting the awarding of subsidies for three major UK projects.

Dong Energy CEO Henrik Poulsen
Dong Energy CEO Henrik Poulsen

The Danish utility posted group revenues of DKK 67 billion (€9.0 billion) for 2014 despite falling profits in oil and gas resulting in a post-tax loss of DKK 6.6 billion.

This helped the company bank earnings before interest, tax, depreciation and amortisation (EBITDA) of DKK 16.4 billion in 2014, compared with DKK 15.0 billion in 2013. Looking ahead, Dong Energy said it had planned to bring more than 6.5GW of offshore wind online by 2020.

In terms of sales, Dong Energy said the company had been boosted by the award of subsidies for the Burbo Bank Extension, Walney Extension and Hornsea offshore projects in the UK.

Investments amounted to DKK 15.4 billion and related primarily to offshore wind activities, with projects incluing West of Duddon Sands and Westermost Rough in the UK, and Borkum Riffgrund 1 and Gode Wind in Germany.

Dong expects EBITDA to reach DKK 15.5-17.5 billion in 2015. The fall with be principally caused by a drop in oil and gas revenues.

Speaking about the results, Poulsen said: "2014 marked a breakthrough for the wind division with regards to securing the pipeline which will realise the target of a total installed offshore wind capacity of 6.5GW in 2020."

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