Orsted reported profit down 15% in the first quarter of 2019, compared with the same period last year, despite earnings from wind power increasing 13%.
Profit in the first three months of the year was just under Dkr2.6bn, down from over Dkr3bn in the same period of 2018.
Earnings before interest, tax, depreciation and amortisation were also lower in Q1 2019 than last year, falling 7% to Dkr5.1bn compared with over Dkr5.5bn.
Orsted said the decreases were expected and were due to a positive one-off compensation awarded following the completion of an arbitration case in the first quarter of 2018, as well as cyclically lower earnings from its gas portfolio in the customer solutions business unit.
The Danish company said earnings from operating offshore and new onshore wind farms partly offset the decline.
Offshore earnings were up to Dkr3.6bn, while onshore contributed Dkr0.2bn, the company said.
Orsted chief executive Henrik Poulsen said: “We delivered strong results in line with expectations. Our full-year guidance remains unchanged.
“During the first quarter we have continued to strengthen our portfolio within both offshore and onshore.
“In April, we took final investment decision on our 900MW Taiwanese Greater Changhua 1 & 2a offshore wind project following the achievement of an establishment permit, approval of the supply chain plan and signing of the power purchase agreement with Taipower.
“We have submitted bids for offshore wind projects in France, the Netherlands and the US. We expect an outcome from all five tenders and auctions over the coming three months.”
He added that the company also took a final investment decision on the 338MW Sage Draw wind farm in the US, which is expected to come online in Q1 2020.
“Furthermore, we have entered into an agreement to acquire a subsidiary of US-based Coronal Energy,” Poulsen (pictured) said.
“The subsidiary is a nationwide solar and storage developer with a significant pipeline of solar and storage projects expanding our capability platform and exposure to new attractive regional markets,” he added.
“We remain very pleased with the operational and financial performance of the company as we continue to expand our position as a global leader in green energy.”
Meanwhile, the company’s board of directors has decided to initiate a share buy-back programme to meet obligations arising from Orsted’s share-based incentive programme.
The buy-back programme will run from today until 22 May and will see Orsted repurchase up to 191,000 shares, corresponding to 0.05% of the current share capital of the company,
Orsted said the programme is subject to a maximum total purchase price of Dkr107.1m.
The company has appointed Nordea Danmark as lead manager of the programme.