Ørsted has achieved an operating profit (EBITDA) of DKK 10.8 billion (EUR 1.45 billion) in the first nine months of 2018, up 14% compared to 9M 2017, mainly due to a 32% increase in operating profits from wind farms in operation.
The Danish wind developer’s EBITDA (business performance) guidance, excluding new partnership agreements, has been increased by DKK 0.5 billion to DKK 13-14 billion. The increase is primarily due to good progress on offshore construction projects, which is expected to result in higher earnings on construction agreements and a faster ramp-up of generation from the Borkum Riffgrund 2 offshore wind farm in the German North Sea.
The full-year EBITDA for 2018, including the profit from the Hornsea 1 partnership, is expected to be significantly higher than the 2017 EBITDA level of DKK 22.5 billion, Ørsted said.
The company increased its gross investment guidance from DKK 16-18 billion to DKK 23-25 billion following the agreement to acquire the US offshore wind developer Deepwater Wind. The guidance includes the acquisition price of Deepwater Wind, early investment commitments for the US offshore and onshore wind portfolio in the fourth quarter of 2018, as well as increased investments in the remaining construction portfolio due to timing across years.
Return on capital employed (ROCE) increased to 23% compared to 15% at 9M 2017.
Looking at the third quarter of 2018, EBITDA reached DKK 2.2 billion, a 27% increase compared to the same period a year earlier.
Earnings from offshore wind farms in operation increased by 31% to DKK 2 billion, primarily due to ramp-up at Walney Extension and Race Bank offshore wind farms in the UK, partly offset by slightly lower wind than in Q3 2017.