Ørsted's Offshore Wind Trio Shines in 2019

Ørsted’s Offshore Wind Trio Shines in 2019

Ørsted has reported an 18% increase in earnings from its offshore wind farms in operation in the first half of 2019, to DKK 5.9 billion (circa EUR 790.6 million), due to the ramp-up at the Hornsea Project One, Borkum Riffgrund 2 and Walney Extension offshore wind farms.

The Walney Extension offshore wind farm. Source: Ørsted

Offshore and onshore wind power generation increased by 45% equalling 7.0TWh in the first six months of the year, mainly due to the ramp-up of generation from the three offshore wind farms.

Revenue from offshore wind farms in operation increased by 13%, again thanks to the abovementioned new offshore wind farms.

Despite the significant growth, Ørsted stated that it is not fully satisfied with the generation in H1 2019 as the number of outages and curtailments has been higher than normal.

In total, the company reported an operating profit (EBITDA) of DKK 8.8 billion, up 2% compared to H1 2018.

In the second quarter of 2019, EBITDA totaled DKK 3.6 billion compared to DKK 3.1 billion in Q2 2018, driven by a 29% increase in earnings from offshore wind farms in operation, mainly Borkum Riffgrund 2, Walney Extension and Hornsea One.

Q2 2019 also saw gross investments of DKK 3.4 billion, of which 84% are related to investments in the offshore and onshore divisions.

By the end of H1 2019, Ørsted said it reduced the carbon emission intensity from its energy generation by 83% through the deployment of offshore and onshore wind and the conversion of CHP plants.

The Danish company believes that earnings from offshore wind farms in operation will increase this year, but less than initially expected due to the curtailment and operational issues experienced during H1 2019.

“2019 has been a very good year for Ørsted so far. Operating profit for the first half of the year amounted to DKK 8.8 billion, which was in line with our expectations and keeps us well on track to deliver on our full-year guidance of DKK 15.5-16.5 billion,” said CEO and President Henrik Poulsen.

To remind, the 659MW Walney Extension was officially inaugurated at the beginning of September 2018, shortly after which all 56 turbines of the Borkum Riffgrund 2 wind farm produced first power.

This February, the 1.2GW Hornsea Project One, set to be the world’s largest offshore wind farm once fully commissioned, delivered its first power.