Operating profit at Dong more than halved in the first quarter of 2017 to stand at Dkr3.3bn, down from Dkr7.1bn in the same period a year earlier.
The Danish offshore wind giant said the EBITDA fall was “in line with expectations” and driven by a positive impact in 2016 of offshore divestments, one-off payments and the divestment of its gas distribution network.
Dong said it successfully commissioned the 258MW Burbo Bank 2 wind farm in the Irish Sea in April, putting the MHI Vestas V164 into commercial operation for the first time.
Dong added quarterly results also show that net debt increased this year by Dkr3.1bn to €6.5bn. Gross investments for the first three months totalled Dkr2.5bn, 80% of which was on offshore wind.
“Quarter one EBITDA in line with expectations gives us a good start to 2017. We maintain our financial guidance for 2017, with EBITDA expected to amount to Dkr15-17bn, which is equal to a growth of 4-18% in the underlying operating profit, and gross investments expected to total Dkr18-20bn for the year,” it said.
Dong also said wind power operations were in line with expectations in February and March following a weak January. Earnings from commissioned projects were up 21% compared with the first quarter in 2016.
Dong has five large offshore wind farms under construction. Earlier this month it won the right to build three more projects with a combined 590MW in the German North Sea.
The zero subsidy bids for two of the German offshore wind farms is a “historical breakthrough” for the industry, it added.
Image: Dong
