Dong's 9-month revenue from wind grows to €1.6 billion

DENMARK: Developer Dong Energy's revenue from wind in the first nine months increased 65% year on year to DKK 12.3 billion (€1.6 billion).

The 312MW Borkum Riffgrund 1 offshore project was commissioned in October 2015 - Dong's first in Germany

Dong's total group revenue increased from DKK 49.9 billion (€6.7 billion) in 2014 to DKK 55.1 billion (€7.4 billion) in the nine-month period, largely helped by offshore wind, said the company. 

Wind is becoming increasingly important to Dong's financial results. Offshore wind contributed 46% of Dong's total electricity generation in the nine months compared to just 35% in the same period of 2014. Also, Dong's gross investment has reached DKK 14.6 billion in 2015 so far, 56% of which was in offshore wind.

This week, Dong announced financial close of the 649MW Walney Extension project in the UK's Irish Sea, which is expected to be completed in 2018. It will become the world's largest offshore project.

The third quarter alone has also been positive for the company's wind division. Dong's earnings from wind power in this period was DKK 1.38 billion, up from DKK 785 million in the same period of 2014.

Dong reported a 15% fall in wind division earnings in the first nine months of 2015, due to a high-earning 2014.

The fall from DKK 5.24 billion (€703 million) to DKK 4.46 billion (€598 million) in pre-tax earnings was due to the sale of stakes in the London Array and Westermost Rough offshore projects in the UK in 2014, said Dong.

The Danish developer sold half its 50% stake in the 630MW London Array to Canadian Pension fund La Caisse de dépôt et placement du Québec (CDPQ) in January 2014.

Japanese bank Marubeni and the UK Green Investment Bank agreed to acquire 50% of the 210MW Westermost Rough UK offshore project from Dong in March 2014.