Orsted achieved an operating profit of DKK 10.8 billion ($1.65 billion) in the first nine months of the year, up 14 percent compared to the same period of 2017, according to an interim report released on Thursday.
The increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, And Amortization) was mainly due to a 32 percent increase in operating profits from wind farms in operation, the Danish energy company said, adding its green share of generation increased from 59 percent to 71 percent over the same period.
The company's strong financial performance continued in the third quarter with operating profits (EBITDA) amounting to DKK 2.2 billion ($337.3 million), a 27 percent increase on the same period last year.
In the period April-June, earnings from offshore wind farms in operation increased by 31 percent to DKK 2 billion ($306.7 million), primarily due to ramp-up at Walney Extension and Race Bank in the U.K., partly offset by slightly lower wind than in the third quarter 2017, according to the statement.
'Our 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 ($3.45 billion),' Orsted added.
Located 120 kilometers off the U.K.'s Yorkshire coast, Hornsea 1 project is set to be the world's largest offshore wind farm with a total capacity of 1.2 gigawatts (GW).
In September, Orsted signed an agreement regarding the farm-down of 50 percent of Hornsea 1 to New York-based Global Infrastructure Partners. The company expects to close the transaction within the coming weeks.
Commenting on the results, Orsted CEO and President Henrik Poulsen said the company secured during the third quarter a 'very strong and long-term growth platform' in the American market.
On Oct. 1, Orsted closed the acquisition of the U.S.-based onshore wind company, Lincoln Clean Energy (LCE).
'By the end of the year, LCE will have an operational capacity of 813 MW. In addition, LCE has a portfolio of 700 MW in advanced stages of development that can enter into construction during the coming year,' Poulsen added.
One week later, on Oct. 8, Orsted entered into an agreement to acquire Deepwater Wind, a leading U.S.-based offshore wind developer, at a price of $510 million (enterprise value of $700 million).
'The two companies' offshore wind assets and organizations will be merged into the leading U.S. offshore wind platform with the most comprehensive geographic coverage and the largest pipeline of development capacity,' the company said in a press release at the time.
With the combined organization and asset portfolio, Orsted will be able to deliver clean energy to the seven states on the U.S. East Coast that have already committed to build in total more than 10 GW of offshore wind capacity by 2030, the statement added.
According to the press release, Deepwater Wind's portfolio has a total potential capacity of approx. 3.3 GW comprising the 30-megawatt Block Island, the only operational offshore wind farm in the U.S. plus three offshore wind development projects in Rhode Island, Connecticut, Maryland and New York totaling 810 megawatts (MW) of capacity with long-term revenue contracts in place or pending finalization.
- Share buy-back program
The Board of Directors of Orsted also decided on Thursday to initiate a share buy-back program to meet obligations arising from its share-based incentive program.
The share buy-back program will run till Nov. 15, and Orsted may repurchase up to 110,000 shares, corresponding to 0.03 percent of the current share capital of Orsted, subject to a maximum total purchase price of DKK 51 million ($7.81 million).
By Hale Turkes
Anadolu Agency
energy@aa.com.tr