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Offshore wind boosts Dong Energy’s second quarter

Thu 10 Aug 2017 by David Foxwell

Offshore wind boosts Dong Energy’s second quarter
Henrik Poulsen: “value-enhancing, green growth opportunities will continue to be explored”

Offshore wind energy made a major contribution to Dong Energy’s second quarter, according to the latest results published by the company.

Commenting on the company’s results for the quarter and interim financial report, chief executive and president Henrik Poulsen said: “Our first half results showed strong strategic progress supplemented by good financial and operating results.”

Mr Poulsen also said that “value-enhancing, green growth opportunities” beyond the company’s current investment plan will continue to be explored, but against “tight strategic and financial criteria.

“This could naturally include additional opportunities within offshore wind – which remains our core focus – as well as other renewable technologies and within our downstream, customer-facing business, all of this supporting Dong Energy’s vision to play a leading role in the energy transformation.

“Our expectations for partnership income in H2 2017 have increased, as we have entered into an agreement to divest 50% of Borkum Riffgrund 2 in 2017 instead of 2018. This means that we have raised our outlook for the group’s operating profit (EBITDA) for 2017 to Dkr17-19Bn (US$2.7-3Bn) from Dkr15-17Bn, corresponding to an underlying growth of 18-32%.

“In May and June, we inaugurated the Burbo Bank Extension offshore windfarm in the UK and Gode Wind 1 and 2 in Germany. In May we produced the first power from Race Bank in the UK, which is due to be commissioned in Q1 2018.

“Our offshore windfarms that are under construction are progressing according to plan. We are also continuing our efforts to expand our portfolio of offshore wind projects for construction after 2020.

In July, we entered into a partnership agreement with the US-based energy company Dominion Energy concerning a development project off the coast of Virginia. The project will initially involve construction of a 12 MW demonstration plant, which may pave the way for future co-operation on further offshore wind development in Virginia.

We expect to submit a bid in the UK auction for the Hornsea 2 project on 14 August, and we expect to know the outcome of the auction in September. The deadline for submitting bids in the auction in Massachusetts in the US is in the second half of December this year, and we expect to know the outcome of this auction in mid-2018 at the latest.”