rsted sees profits boosted by offshore wind farm stake sale – Windpower Monthly

rsted boosted both its operating profit and net profit in the first half of the year and retained its full-year guidance for 2021.

However, due to issues with cable protection systems and significantly lower wind speeds across its entire offshore wind portfolio, the Danish developer expects full-year Ebitda to be in the lower end of its DKK 15-16 billion (2.01-2.15 billion) guided range.

It recorded Ebitda for the first half of 2021 of DKK 13.1 billion up 34% year on year. This increase was driven by the gain of DKK 5.4 billion after selling a 50% stake in the Dutch offshore wind farm, 752MW Borssele I & II Borssele I & II (752MW) Offshoreoff Zeeland, Netherlands, Europe Click to see full details.

The growth came despite earnings from its operational offshore and onshore wind farms falling 3% to DKK 7.9 billion in the first half of the year. The increased generation capacity from its wind farms was more than offset by significantly lower wind speeds across rsteds portfolio, the developer explained.

It was also hit by several negative impacts in the UK, including higher than expected charges for using the transmission network known asTNUoS tariffs and designed to recover the cost of installing and maintaining the country's transmission system due to rsted boosting its UK wind portfolio; lower earnings from209MW Horns Rev 2 Horns Rev 2 (209MW) Offshoreoff Blvandshuk, Denmark, Europe Click to see full details as a result of the subsidy period ending in October 2020.

rsteds earnings from existing partnerships were also down in the first half of the year. In H1 2020, this figure had been boosted by high earnings from construction agreements related to the1218MW Hornsea Project One Hornsea Project One (1218MW) Offshoreoff Yorkshire, UK, Europe Click to see full details offshore wind farm, while H1 20221 was negatively impacted by a warranty provision related to cable protection system issues at some of its offshore wind farms.

Earnings from bioenergy and other businesses were in line with those from last year.

rsted recorded a net profit of DKK 7.1 billion in the first half of 2021, up from DKK 2.5 billion one year earlier. This was primarily driven by the stake sale in Borssele 1 & 2.

rsted has maintained its full-year Ebitda guidance of DKK 15-16 billion. However, due to wind speeds being significantly lower than normal across its entire offshore wind portfolio and the warranty provisions for cable protection systems, it expects this to be in the lower end of the guided range.

The company has raised its full-year gross investment guidance from DKK 32-34 billion to DKK 39-41 billion, following the completion of a deal to acquire Brookfield Renewables Irelandss onshore wind and solar portfolio in June and due to the expected acquisition of the300MW Lincoln Land Wind Lincoln Land Wind (300MW) OnshoreMorgan County, Illinois, USA, North America Click to see full details project in the US later this year.

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rsted sees profits boosted by offshore wind farm stake sale - Windpower Monthly