Centrica renewables operating profit for 2014 took a dive of 60 per cent comparing to the previous year.
The company named a reduced contribution from the disposal of assets and increased costs associated with writing down developments as the reason for the profit drop.
After reviewing the economic viability of the Round 3 Irish Sea Zone project, Celtic Array, Centrica handed back the license to the Crown Estate in June last year.
As a result, the developer recognised a charge of £40 million, principally in respect of writing off the total book value of the project.
Centrica’s renewables division reported increased loss of 54 per cent reaching GBP 17 million while the operating profit amounted to GBP 27 million.
Furthermore, the company disposed its 50% non-operated interest in the Barrow offshore wind farm to DONG Energy for GBP 50 million, with Centrica recognising a GBP 26 million pre-tax profit from the disposal.
In spite of the challenges Centrica’s CEO Iain Conn believes the company has “built a solid set of positions from which we will be able to continue to play an important role in the developing energy markets on both sides of the Atlantic.”
OffshoreWIND staff; Image: centrica