New offshore wind increases Ørsted's profits

DENMARK: Ørsted's operating profit rose 14% in the first nine months of the year, with the increase being primarily driven by newly commissioned wind farms.

Newly commissioned offshore wind projects, including Race Bank, boosted Ørsted's profits
Newly commissioned offshore wind projects, including Race Bank, boosted Ørsted's profits

The developer recorded an operating profit of DKK 10.8 billion (€1.44 billion) between 1 January and 30 September, up from DKK 9.5 billion one year earlier.

It stated that higher generation at its offshore wind farms in operation — 6.7TWh compared to 5.6TWh one year — drove this change.

Ørsted commissioned two sites off the UK during this period: its Race Bank project in January, followed by its Walney Extension site in May.

These new projects boosted Ørsted’s offshore wind earnings before interest, tax, depreciation and amortisation (Ebitda) from DKK 5.3 billion to DKK 7 billion in the first nine months of the year.

Ørsted Wind
key figures
Jan-Sep 17 Jan-Sep 18 Jul-Sep 17 Jul-Sep 18
Revenue (DKK billion) 14.7 19.8 3.9 5.3
Ebitda (DKK billion) 8.0 9.0 1.6 1.9
Electricity generation (TWh) 5.6 6.7 1.7 1.9

It also increased its Ebitda guidance for the full year by DKK 500 million to DKK 13-14 billion due to "good progress" on its offshore construction projects, it explained.

The developer expects its 450MW Borkum Riffgrund 2 wind farm off the coast of Germany to be commissioned "in the coming month", it stated.

Ørsted added that its acquisition of US developer Lincoln Clean Energy — a deal completed at the start of October — would "only have a limited impact" on Ebitda for the year.

Elsewhere in the third quarter, Ørsted acquired US offshore developer, Deepwater Wind, and received approval from UK seabed landlord, The Crown Estate, to extend its Race Bank project.

Finally, it agreed to sell half of its 1.2GW Hornsea One project to investment firm Global Infrastructure Partners.

Ørsted stated that, including the profit from its Hornsea One divestment, it expected its full-year Ebitda to be "significantly higher" than the DKK 22.5 billion last year. 

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