Danish Orsted's operating profit (EBITDA) fell by DKK 1.9 billion to DKK 4.9 billion ($798 million) for the first quarter of this year compared to the same quarter last year, the company announced on Thursday.
It said the decrease was mainly due to high earnings from the construction agreement of the transmission assets of the Hornsea One offshore wind farm in the first quarter of 2020 not being repeated in the same period of this year, very strong wind speeds in the first quarter of 2020 and the divested distribution, residential customer, and city light businesses last year.
Hornsea One is the largest offshore wind farm in the world, producing enough energy to power well over one million homes.
Located off the Yorkshire coast, Hornsea One spans a huge area of approximately 407 square kilometers, which is over five times the size of the city of Hull in East Yorkshire in England.
The offshore wind farm uses 7-megawatt wind turbines, each at a height of 190 meters.
"Furthermore, the first quarter of this year was impacted by a DKK 0.8 billion warranty provision related to cable protection system issues at some of our offshore wind farms," it added.
The company's earnings from offshore and onshore wind farms in operation were in line with the same period last year. More wind farms in operation were offset by significantly lower wind speeds across Orsted's offshore portfolio.
“Orsted’s operational performance was good during the quarter and slightly exceeded our expectations," said Mads Nipper, CEO of the company.
The company will announce long-term targets and strategy on June 2.
1 DKK = $0.16
By Murat Temizer