Wind profits sees DONG Energy valued at £10bn

Wind profits sees DONG Energy valued at £10bn

by Big Mac

Image: DONG Enegry

DONG Energy has seen company value hit £10 billion after wind profits soared by 68%.

The world’s leading offshore wind farm developer has today published its half-year results, which show underlying growth of 34% driven by the strong performance of wind power.

Wind revenue increased from DKK4.6 billion (£517.8m) to DKK12.3 billion(£1.38bn) after a number of successful construction contracts were secured, including Germany’s Gode Wind 1 and 2 and the UK’s Burbo Bank extension.

Wind revenues also increased due to higher generation from Westermost Rough in the UK. A number of other projects are underway elsewhere in Europe, the US and Taiwan.

The company expects to achieve levelised cost of electricity (LCoE) below €100 (£83.7) per MWh for the first time this year.

Henrik Poulsen, CEO and President of DONG Energy, said: “The Group’s operating profit increased by 19% compared to the same period last year, driven by strong growth in wind power.

“The German and Dutch offshore wind projects are based on our strong and differentiated business model and will contribute to the continued profitable growth of the group. Our winning bid for the Dutch wind farms is the result of our systematic efforts to reduce the costs of offshore wind power – and tangible evidence of the long-term potential of offshore wind power.”

These are DONG Energy’s first results as a listed company following its successful Initial Public Offering (IPO) on the Nasdaq OMX Copenhagen stock index.

The IPO was priced at DKK235 per share, valuing the company at DKK98.2bn (£10bn).