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Ramping up Race Bank helps Dong Energy power on - Q3 results

THE ramping up of generation from new offshore wind farms – including Grimsby’s Race Bank – helped Dong Energy increase earnings by 39 per cent, as it posted an operating profit of £212 million for the quarter. 

Ramping up Race Bank helps Dong Energy power on - Q3 results

In like-for-like terms it was down 10 per cent, due to the sell-off of stakes in its assets, in a period that brought forward Hornsea Project Two - a major highlight of the interim financial report.

Badged up as Ørsted ahead of the formal name change on Monday, the company said results lived up to expectations, with earning guidance for 2017 adjusted up back in quarter two, pushed up again. 

It is due to the sale of a 50 per cent stake in West Coast farm Walney Extension, following a similar German transaction earlier in the year. The board now anticipates earnings of between £2.2 billion and £2.4 billion come year end.

Chief executive and president Henrik Poulsen said: “The divestment of our upstream oil and gas business to Ineos was a milestone in our strategic transformation from black to green energy. Our vision is to create a world that runs entirely on green energy. We expect that more than 95 per cent of the power and heat we generate in 2023 will be green.

“The year is developing according to our expectations and today we increased our EBITDA guidance for 2017 by DKK 2 billion to DKK 19-21 billion following the agreement to divest 50 per cent of Walney Extension to PKA and PFA, two leading Danish pension funds." 

It will represent underlying growth of between 32 and 45 per cent.

Mr Poulsen, pictured above, added: “In Q3 2017, we increased generation from our offshore wind farms and at the same time we strengthened our long-term development pipeline with the world’s largest offshore wind farm Hornsea Two with a capacity of 1.4GW, which will be completed in 2022. This will be our first offshore wind farm, which can generate power at a lower price than newly constructed coal and gas-fired power stations. This is a major breakthrough, both for Ørsted and the green transformation.”

Race Bank, on its way to 573MW of installed capacity, has recently become Grimsby’s largest operational wind farm as capacity surpassed that of Lincs farm (270MW), because it is being powered up as it is built out.  

Dong’s installed and decided capacity now accounts for almost 9GW of the spoken ambition of 11 to 12 GW by the end of 2025.

It is in the process of massively extending its base at Grimsby's Royal Dock to serve the new wind farms, with a projection of 500 jobs for the town as it makes it the company's east coast hub and principal operational site in the UK.

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