Northland Power’s offshore wind business recorded an 18% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of C$126m (€79m) in its second quarter results, compared with the same period in 2019.
The Canadian energy company attributed the increase to the start of operations at the Deutsche Bucht offshore wind farm, off Germany.
In the overall second quarter results posted by the company, adjusted EBITDA increased 17% to C$227m from $194m in 2019.
With Deutsche Bucht becoming operational electricity production from the offshore wind business increased 10% by 65 gigawatt-hours compared to the same quarter of 2019.
Output was partially offset by lower wind resource in the North Sea and increased periods of unpaid curtailment due to a “significant unscheduled outage” by the system operator for grid repairs that affected Nordsee One and Deutsche Bucht, Northland said.
Operating income of C$87m decreased 4.9% or C$4m compared to the same period in 2019 primarily due to higher sales and operating costs, combined with depreciation charges at Deutsche Bucht since reaching final completion in March 2020.
Sales of C$215m increased 11% or C$22m compared to the same quarter of 2019.
Northland said this was primarily due to C$40m of revenue from Deutsche Bucht and C$3m of foreign exchange rate fluctuations, net of losses of C$2m from a lower wholesale market price below the SDE floor at Gemini, C$13m from unpaid curtailments due to grid repairs and C$6m from negative prices at Nordsee One and Deutsche Bucht.
In Northland’s onshore renewables business operating income and adjusted EBITDA of C$32m and C$43m, respectively, increased 22% and 9%, respectively, due to higher production and lower operating costs.
Electricity production was largely in line with the same quarter of 2019, primarily due to a higher solar resource partially offset by overall lower wind resource, Northland said.
Sales of C$61m increased 5% compared to the same quarter of 2019 primarily due to higher solar production.