Orsted has notched 27% increases in both EBITDA and revenue in the third quarter compared to the same period last year and is on track to record “significantly higher” profit for the full-year above the Dkr22.5bn banked in 2017.
The Danish offshore wind giant booked EBITDA of Dkr2.2bn for the last three months, up from Dkr1.6bn last year, on the back of revenue of Dkr15bn, up from Dkr11.9bn.
Earnings from offshore wind farms in operation increased by 31% to Dkr2bn, primarily due to ramp-up of the Walney 3 and Race Bank projects in the UK. This was partly offset by slightly lower wind than in the third quarter 2017.
The figures have contributed to nine-month operating profit of Dkr10.8bn, which is up 14% when compared to the same period in 2018 and thanks to a 32% increase in operating profits from wind farms in operation.
“Our full-year EBITDA for 2018, including the profit from the Hornsea 1 partnership, is expected to be significantly higher than the 2017 EBITDA level of Dkr22.5bn,” added the company.
Chief executive Henrik Poulsen (pictured) hailed the “strong results”.
“We remain very pleased with the operational and financial performance of the company as we continue to expand our position as a global leading company in the green energy industry,” he said.
Poulsen point to recent acquisitions in the US of an onshore pipeline from Lincoln Clean Energy and an offshore platform from Deepwater Wind.
“During the third quarter we…secured a very strong and long-term growth platform in the American market.”
Meanwhile, the farm down of the 1.2GW Hornsea 1 in the UK will be completed in the “coming weeks”. “The farm-down is one of the largest renewable energy M&A transactions of all time, and the valuation underpins the attractiveness of our offshore wind assets.
Orsted has also increased EBITDA guidance, excluding new partnership agreements, by Dkr500m to Dkr 13-14bn.
“The increase is primarily due to good progress on our offshore construction projects, which is expected to result in higher earnings on our construction agreements and a faster ramp-up of generation from Borkum Riffgrund 2,” said the company.
“In addition, we have had higher than expected earnings in our gas portfolio and LNG business. The Lincoln Clean Energy acquisition will only have a limited impact on EBITDA in 2018.”
Orsted has meanwhile started a share buy-back scheme that will run for the next two weeks.
A video summary of the latest results can be found here.