Ørsted announces record profits

Jack Unwin 31 January 2019 (Last Updated July 10th, 2020 11:51)

Danish renewable power company Ørsted has today announced record profits for 2018, recording an operating profit of $461 million (Kr.30 billion) and a net profit of Kr.19.5bn.

Ørsted announces record profits
Ørsted announces record profits for 2018. Credit: Orsted

Danish renewable power company Ørsted has today announced record profits for 2018, recording an operating profit of $461 million (Kr.30 billion) and a net profit of Kr.19.5bn.

Total earnings from offshore wind farms totalled Kr.11bn in 2018, an increase of 29% on 2017. This was thanks to two UK projects; Walney Extension off the coast of Cumbria, Race Bank at Grimsby and Borkum Riffgrund 2 off the coast of Germany.

The company also completed the farm-down of Hornsea 1, a UK offshore wind farm that will be the largest wind farm in the world when it is completed. The farm-down earned Ørsted Kr.15.1bn pre-tax.

Ørsted also made investments in the US. It acquired Lincoln Clean Energy, an onshore wind developer for $580m and offshore wind developer Deepwater Wind for $510m. This will provide the company with a platform on the US east coast and will “be a growth platform and provide strategic diversification to Ørsted’s portfolio.”

Ørsted’s total wind portfolio stood at 12GW in 2018. Its share of renewable energy in its generation mix rose from 64% in 2017 to 75% in 2018.

Ørsted CEO Henrik Poulsen said: “2018 was a great year for Ørsted. We delivered our best financial result ever and continued our deployment of green energy, reaching 75% green energy in our heat and power generation. On a global scale, renewable energy will grow rapidly in the years to come. We are well positioned to take part in this significant growth.

“In 2018, we reached significant milestones in our ambitious green strategy. In the UK, we commissioned Race Bank in January and Walney Extension, the world’s largest offshore wind farm, in May, and in Germany, we commissioned Borkum Riffgrund 2 in December. All were commissioned ahead of schedule, underpinning the strength of our construction capability.”

In a conference call announcing the results, Poulsen stated the potential for expansion in Japan. Ørsted recently signed a partnership with Tokyo Electric Power Company (TEPCO) to develop the Choshi 1 offshore wind project near Tokyo.