Denmark’s DONG Energy beat second-quarter profit forecasts on Thursday and said the start-up of more projects and a fall in construction costs would generate more cash, possibly making way for higher shareholder returns in coming years.
The world’s largest owner of offshore wind power reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of 4.4 billion Danish crowns ($694 million).
That was up from 2.62 billion a year earlier and beat the 3.4 billion forecast by analysts in a Reuters poll.
DONG benefited from a deferred gain of 1.4 billion crowns related to a wind farm stake sale in December being recognised.
It confirmed its forecast for 17-19 billion crowns in 2017 EBITDA from continuing operations, a target it raised this week due to the sale of a stake in a German offshore wind project.
DONG has a strategy of farming down, or selling off, large stakes in wind farms in order to invest the capital into new projects.
In the next couple of years more projects will start producing, raising revenue and making it less reliant on such stake sales.
“When we look 1-3 years into the future we believe that we will begin to generate excess financial headroom,” Chief Executive Henrik Poulsen said. Read More…
Credit By : ET Energy World
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