ABB hit by offshore wind delays
Swiss-based power and automation giant ABB warned investors its fourth-quarter profits will be hit by weather and operational issues at North Sea offshore wind projects.
ABB – which is working on a number of major transmission projects in Germany including the 800MW Dolwin1 – said its Power Systems division will take a hit of about $260m in charges to its Q4 operating earnings.
This is “mainly from delays to offshore wind projects caused by severe winter storms in the North Sea in December, and some operational issues”, ABB told its investors.
The issues are being addressed with an “enhanced realignment programme” under a newly-installed leadership, said the company.
Recharge reported in December how gale-force winds had caused havoc to some projects' schedules.
ABB said the stormy weather “slows down installation processes and operations, which has costly knock-on impacts and delays on related activities and time schedules”.
ABB CEO Ulrich Spiesshofer said the issues facing Power Systems are “disappointing. A focused action program is addressing these issues and implementation has been started swiftly.”
He said the group would give more details with its full-year results on 13 February.