Lower energy from wind pushes Dong power generation down 3% year on year

Dong’s power generation was down 3% year on year in the company’s first financial results since it floated on Nasdaq Copenhagen on 9 June.

Lower energy from wind year-on-year contributed to a 3% downturn in the company’s power generation, the company said in it’s Q2 2016 interim results. The reduced generation from its existing sites was was partially offset by new wind farms at the UK’s Westermost Rough and Borkum Riffgrund 1 in Germany.

The company celebrated a 19% increase in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to DKK 12.4bn. Dong attributed this to “strong underlying growth” in its wind power devision and the settlement of gas sourcing contracts. Declining oil and gas prices put negative pressure on profits. The company had increased cash flow year-on-year from DKK 6.6 to DKK 10.7bn, partially thanks to the sale of Westermost Rough transmission assets.

Poulsen said the company was had not yet decided whether to participate in the UK’s next Confract for Difference (CfD) auction. He said Dong expected the auction to happen “towards the very end of this year” or during the first half of 2017.

The chief executive said the company did not expect the Brexit vote to impact UK energy policy: “When it comes to the fundamental energy policy in the UK, we don’t expect big changes to the offshore wind market with support to continue. It is important for the security of supply and industrial strategy,” he added.

Related content:

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European utilities’ credit ratings may fall, warns Moody’s

Dong Energy seeks to cut balancing exposure by using large-customer flexibility

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