Offshore wind industry leader Ørsted said it has had a good start to 2019, with operating profit in line with expectations.
Reporting results for Q1, the company said it had an operating profit (EBITDA) of Dkr5.1Bn (US$5.7Bn), down 7% compared to Q1 2018.
The decrease was expected and was mainly due to a positive one-off compensation awarded following the completion of an arbitration case in Q1 2018 as well as cyclically lower earnings from its gas portfolio. This was partly offset by a 13% increase in earnings from offshore windfarms in operation and earnings from new onshore windfarms.
Return on capital employed increased marginally to 28% compared to 27% in Q1 2018. The green share of generation increased from 68% to 80%.
Ørsted chief executive and president Henrik Poulsen said, “We delivered strong results in line with expectations. Our full-year guidance remains unchanged. During the first quarter we have continued to strengthen our portfolio offshore and onshore.
“In April, we took final investment decision on our 900-MW Greater Changhua 1 & 2a offshore wind project in Taiwan following the achievement of an establishment permit, approval of the supply chain plan and signing of the power purchase agreement with Taipower.
“We have submitted bids for offshore wind projects in France, the Netherlands and the US. We expect an outcome from all five tenders and auctions over the coming three months.
Mr Poulsen said the company had also entered into an agreement to acquire a subsidiary of US-based Coronal Energy. The subsidiary is a nationwide solar and storage developer with a significant pipeline of solar and storage projects.
“We remain very pleased with the operational and financial performance of the company as we continue to expand our position as a global leader in green energy,” Mr Poulsen concluded.