Offshore wind boosts Dong's 9M

A major surge in wind power revenue pushed Dong Energy's nine months profits higher, prompting the utility to raise its 2013 earnings outlook.

"The strategic focus on maintaining and developing Dong Energy's global leadership position in offshore wind has led to a doubling of earnings form Wind Power in 2013, driven by the completion of the two large wind farms London Array and Anholt" says chief executive Henrik Poulsen.

"A further three wind farms are under construction, two in the UK and one in Germany, and these are expected to be completed in the course of 2014 and 2015."

Revenue from Dong Energy's wind power unit jumped to DKr9.01bn ($12.4bn) in the first nine months of 2013, up from DKr5.05bn in the year-earlier period.

Wind power revenue for the first time actually overtook that of exploration and production, which came in at DKr8.4bn, underscoring the company's strategic ambition to move from being a black (oil and gas) utility to a green one (renewables).

Output from the recently inaugurated 630MW London Array (UK) and 400MW Anholt (Denmark) offshore wind farms also helped push Dong's electricity generation higher, to 14.1 terawatt hours in the first nine months of 2013, from 11.2TWh a year earlier.

To continue boosting its offshore wind business, the company dedicated DKr7.7bn - almost half of its gross investments - into the development of wind activities during the first nine months. The largest chunk of that, or DKr1.9bn, went into Anholt,

Another DKr1.7bn were spent on the development of the 388.8MW West of Duddon Sands park off the UK coast that Dong plans to take on stream next year.

The good performance in wind helped the company's overall earnings before interest, taxes, depreciation and appreciation (Ebitda) to rise to DKr11.2bn from DKr6.6bn in the period.

Following the positive results, Dong revised its 2013 Ebitda outlook up by DKr0.5bn to a range between DKr13.5bn and DKr14.5bn.

Dong Energy in the first nine month reversed to a net profit of DKr52m, from a net loss of DKr2.4bn a year earlier.