Wind boosts Dong earnings in H1
Denmark’s Dong Energy said higher earnings from its wind operation were a key driver of profits growth in the first half of the year.
Dong – the world’s biggest operator of offshore wind farms – posted a DKr9.8bn ($1.73bn) profit before interest, tax, depreciation and amortisation (Ebitda) in the January to June period, up from DKr7.8bn at the same stage last year.
First-half Ebitda from the wind and hydro division grew to DKr4.46bn from a year-earlier DKr2.35bn, boosted by the income from divestment of stakes in the London Array and Westermost Rough UK offshore wind projects.
Generation from wind and hydro was 38% of Dong’s total power production, up from 27% in H1 2013.
Dong’s net profit rose to DKr1.4bn from DKr1bn.
CEO Henrik Poulsen said: "The transformation of Dong Energy's business continues according to plan, with an increasing part of earnings coming from the investment focus areas wind power and E&P. Also, the transition of the group's electricity generation to renewable energy is making good progress.”
Poulsen added: “In wind power, the award of subsidies to the three UK offshore projects Burbo Extension, Walney Extension and Hornsea has provided security for our pipeline up to 2020, which will allow us to focus on our objective of significantly reducing the costs of electricity generation from offshore wind.”
The Dong boss said the part-divestment of more stakes in wind farms – most recently Westermost Rough and Gode Wind 2 in Germany – showed the “strong market interest” in the Danish group’s development model.
Dong reaffirmed its financial guidance for the year following the half-year statement.