Lower than normal wind speeds have had an adverse impact on Orsted’s operating profit.
The below average conditions in the first nine months of 2021 - down from 9.8 metres per second to 8.7 - have seen more than £285 million of earnings wiped out.
However, the ramping up of generation capacity and strong earnings in bioenergy saw significant growth still, up £331 million to £1.8 billion on revenues of £5.3 billion. Availability of assets was also maintained at 94 per cent.
Read more: SSE and Equinor sell £140m Dogger Bank offshore wind farm stake to Eni
Updating the City, chief executive Mads Nipper told how the receipt of the contracts for difference for the final 400MW of the world-leading Hornsea One offshore wind farm, operated and maintained from Grimsby, had also mitigated the drop.
He described the quarter three release as “good financial results despite low wind speeds and unusual market conditions - we are on track to meet our full-year guidance.”
Earnings included a sale of a 50 per cent stake in Dutch wind farm Borssele.
A net profit of £869 million was recorded, with a return on capital employed of 12.9 per cent.
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Full year guidance on earnings in 2021 is at the lower end of the £1.7 billion to £1.8 billion range.
Orsted entered 2021 with consent achieved for Hornsea Three offshore wind farm, and is now making steps in the Humber into hydrogen production too, with dual programmes featuring both offshore and onshore models. Grimsby has been selected as the test bed for the marinised pilot, while it is working with Phillips 66, ITM Power and Element Energy on a proposal that will link its North Killingholme substation with the neighbouring oil refinery to fuel switch.
Updating on construction of Hornsea Two, Mr Nipper said first power is expected later this year when the offshore transmission asset gets connected to the grid, with commissioning of the wind farm in the first half of 2022.
Mr Nipper said: “Overall, we are very pleased with our strategic and commercial progress. This year, we have been able to secure 3.6GW of new offshore wind capacity in 2021 and now have 18GW of firm offshore wind capacity secured towards our 30GW target by 2030, which is a critical step in reaching our ambition of 50GW of installed renewable capacity by 2030 and a strong testament to our commercial strength in offshore wind."
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