Fred Olsen offshore wind results in the first nine months of the year have been hit by a negative arbitration ruling related to a met mast contract.
The company said the net result was “significantly and unexpectedly impacted” by the UK case, which related to work entered into in 2011 and resulted in a net impact of Nkr58m (€6.4m).
No further details were provided although it is understood the case relates to suction bucket devices installed off the UK.
The net loss after nine months was Nkr216m, compared with a loss of Nkr64m in the corresponding period of 2015.
Fred Olsen otherwise recorded a big jump in offshore wind revenues in the third quarter on the back of higher utilization of jack-ups Brave Tern and Bold Tern.
Revenue in the period was Nkr428m, compared with Nkr254m in the year ago period, with the Fred Olsen Windcarrier vessels active in the US, UK and Germany.
Segment EBITDA in the quarter was Nkr112, compared with a loss of Nkr17m in the corresponding period of 2015.
“The two vessels have been upgraded in 2016, the legs and the cranes have been extended and the last vessel was finished in July. The upgrades positions the vessels better for working on a wider range of projects in deeper waters and with larger turbines,” said the company.
Onshore, Fred Olsen Renewables posted third quarter EBITDA of Nkr120m, compared with Nkr106m in the year ago quarter. The operating result for the nine month period was Nkr406m, down from Nkr550m.
Generation inthe third quarter was 304GWh, up from 260GWh, on the back of production from the completed 78MW Faboliden in Sweden. Like for like generation increase was up 1%.
Revenues despite the bump in generation were up only slightly an Nkr203m, with Fred Olsen pointing to negative exchange rate impacts and unseasonable weak winds.
Construction is ongoing at two wind farms in Scotland, the 14MW Crystal Rig 3 and 61.5MW Windy Standard 2.
Image: Windcarrier installation vessels had a positive quarter (Fred Olsen Windcarrier)
