DONG Energy’s operating profit (EBITDA) increased by DKK 1.8 billion and amounted to DKK 4.4 billion in Q2 2017. Underlying operating profit (EBITDA) rose by 74% due to higher earnings from ramp up of new offshore wind farms as well as high wind energy content.
Furthermore, earnings increased from partnership agreements as Q2 2017 was positively impacted by gains related to the farm down of 50% of Race Bank. Gross investments totalled DKK 4.3 billion and related primarily to the construction of Walney Extension, Race Bank and Hornsea 1 in the UK as well as Borkum Riffgrund 2 in Germany.
Their expectations for partnership income in H2 2017 have increased, as they have entered into an agreement to divest of 50% of Borkum Riffgrund 2 in 2017 instead of 2018. The company has therefore raised their outlook for the Group’s operating profit (EBITDA) for 2017 to DKK 17-19 billion from previously DKK 15-17 billion, corresponding to an underlying growth of 18-32%.
In May and June, Dong Energy inaugurated the UK offshore wind farm Burbo Bank Extension and the German offshore wind farms Gode Wind 1 and 2. Furthermore, in May they produced the first power from Race Bank, which is expected to be fully commissioned in Q1 2018.
In July, the company entered into a partnership agreement with the US-based energy company Dominion Energy concerning a development project off the coast of Virginia. The project will initially involve construction of a 12MW demonstration plant, which may pave the way for future cooperation on further offshore wind development in Virginia. They expect to submit a bid in the UK auction for the Hornsea 2 project on 14 August, and expect to know the outcome of the auction in September. The deadline for submitting bids in the auction in Massachusetts, USA, is in the second half of December this year, and we expect to know the outcome of this auction in mid-2018 at the latest.