Denmark

Denmark

Ørsted's profits squeezed despite offshore earnings boost

Ørsted's earnings from offshore wind increased 18% in the first half of 2019, but its overall profit fell by 6% year on year.

An array cable repair campaign at Ørsted's London Array in UK waters hindered power output in H1, the developer stated
An array cable repair campaign at Ørsted's London Array in UK waters hindered power output in H1, the developer stated

The Danish developer’s first-half profit of DKK 3.6 billion (€491 million) was down on the same period a year ago.

This was due to Ebit totalling DKK 5.4 billion, down 5% year on year.

It earned DKK 5.9 billion from offshore wind in H1 2019, due to the ramp-up of generation from new projects, but it stated that it was "not fully satisfied" with its wind output.

The developer added that the number of outages and curtailments across its offshore wind portfolio were "higher than normal" in the first half of the year.

It cited a platform fire at its Horns Rev 1 site in Denmark in October 2018, converter station outages at Borkum Riffgrund 2 off Germany, an array cable repair campaign at its London Array site off the UK, and various array cable and export system outages at UK wind farms, Race Bank, West of Duddon Sands and Burbo Bank.

Nevertheless, power generation from wind — offshore and onshore — increased 45% to 7TWh in the first half of 2019.

Onshore wind also "contributed positively" to Ørsted’s finances in H1 2019, with the commissioning of its 184MW Lockett wind farm in Texas taking place "well ahead of schedule", the company stated.

Ørsted invested DKK 7.2 billion in the first half of the year, 40% more than it did in the same period in 2018.

These investments included DKK 4.4 billion in offshore wind farms off the coasts of the UK, the Netherlands and Taiwan, and DKK 1.7 billion in onshore wind projects in the US.

The firm's CEO Henirk Poulsen set two new targets for the company. It plans to reduce indirect emissions — including those from services it sources for construction of wind farms — by 50% by 2032 from 2018 levels.

The company also intends to phase out fossil-fuelled cars from its car fleet and fully convert to electric vehicles by 2025.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Latest Offshore Wind Jobs