Dong Energy sells 50% in U.K. wind farm, lifts outlook

Wednesday, 21. December 2016 18:18

Denmark's largest utility agreed to transfer half of the interest in Race Bank, a giant offshore eolic project in development, and increased its guidance for operating profit for the current year. Dong Energy, headquartered in Fredericia in eastern Jutland, said on Wednesday the divestment in a deal with Macquarie European Infrastructure Fund 5 and Macquarie Capital, the principal investment arm of Macquarie Group, improves the expected range for earnings before interest, tax, depreciation and amortization (EBITDA) to between 24 and 25 billion Danish kroner (€3.23 billion and €3.36 billion) from 20-23 billion kroner.

The wind farm, which is in construction, is off North Norfolk and Lincolnshire coasts in the United Kingdom. The power plant will have the capacity of 573 megawatts and the planned launch is in 2018. The deal includes the commitment by Australian investors to fund 50% of capital expenditure, bringing the transaction value to £1.6 billion (€1.9 billion).

Dong Energy also attributed the improvement in outlook to advances in operational performance and reduced costs in the sector of oil and gas, alongside favorable renegotiations of gas contracts. The latest agreement has a clause regulating construction risk sharing, while the Danish company said it will manage construction.


Image: EPA / Wolfgang Runge

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