Orsted's core profit for the first quarter of 2018 exceeds expectations and maintains outlook

Orsted, the Danish offshore wind developer, reported on Wednesday a core profit for the first quarter that was above expectations. This was due to an increase in electricity output. Orsted also maintained its outlook for this year.

Orsted has struggled in recent years with rising costs due to supply?chain disruptions and inflation. Last year, it announced that it would be focusing more on Europe because of regulatory challenges and President Donald Trump's opposition to U.S. Wind Power.

We are on solid ground and executing our plan. Orsted's refocus continues and we are ready to invest into value-creating markets in Europe and APAC (Asia-Pacific) as the refocusing of Orsted continues.

He said that the conflict in the Middle East underscored the need for Europe to transition into an independent energy system and the argument for offshore wind farms.

Energy prices have risen in Europe, a major fossil fuel importer, since U.S. and Israeli strikes on Iran, and Teheran’s blocking of shipments via the Strait of Hormuz.

Orsted's profit before interest, tax, depreciation, and amortisation (excluding new partnerships and cancelation fees) rose from 8.57 billion Danish crowns to $9.55 billion Danish crowns, up from $8.57 billion a year earlier. This is above the?average forecast, which was 9.47 billion crowns, seen in an Orsted-provided survey.

The company reaffirmed its full-year outlook from February, which predicted a core profit of more than 28 billion crowns and gross investments between 50 and 55 billion. It confirmed its plans to pay dividends in 2026. Reporting by Louise Rasmussen and editing by Terje Solsvik.

(source: Reuters)