Lower earnings in the second quarter due partly to Covid-19 complications drove offshore wind giant Orsted to a loss for the three months to end-June.
The Danish company in results today said EBITDA was a shave under Dkr3bn (€400m), down 18% on the same period last year.
The fall was due to a Dkr150m direct Covid-19 cost as well as the pandemic’s effect on power markets, which led to a Dkr317m hit on trading activities.
Lower EBITDA led to a net loss of Dkr809m for the quarter, in comparison to a Dkr1.1bn profit in 2019.
One off effects from deferred tax related to tax equity on US onshore wind farms and loss from early termination of debts also contributed.
Chief executive Henrik Poulsen said: “We have…seen negative Covid-19 related effects on European power markets, especially in the UK, driven by lower demand for electricity.
“The negative impact on our Q2 earnings was approximately Dkr150m. A contained impact which does not change our full-year expectations.”
On construction, Poulsen added that there is a risk of delay in particular to Hornsea 2, as a substation for the project is being built in Singapore at a yard that was closed for two months due to Covid-19.
However, any delay is expected to have a “limited overall impact on project economics”.
He also pointed out that for the first half-year of 2020, operating profit (EBITDA) amounted to Dkr9.8bn, an 11% increase compared with the same period last year.
Earnings from offshore and onshore wind farms in operation during the first half increased by 17% to Dkr8.2bn driven by ramp-up of power generation from Hornsea 1, Lockett, and Sage Draw together with high wind speeds.
The green share of heat and power generation increased to 88% from 82%.
EBITDA guidance is meanwhile unchanged at Dkr16-17bn in 2020.
The company has, however, lowered expectation to gross investments by Dkr2bn to Dkr28-30bn in 2020 due to “changed timing of payments”.