DONG unfazed by Brexit despite $280m loss

DONG Energy said in its first published results since holding an IPO that offshore wind would continue to propel it forward in a year that has seen the company report mixed performance so far.

The Danish utility, valued at DKr98.2 billion ($15 billion; €13 billion) upon floating in June, reported a 19 percent rise in EBITDA for the first half of the year, to DKr12.4 billion. Its wind power unit's earnings increased by 68 percent compared to the same period last year, despite an overall net loss of DKr1.86 billion in the second quarter.

DONG's growing footprint in offshore wind comes at a time when investments in the sector are gaining steam across Europe. According to trade association WindEurope, more capital was invested in Europe's offshore industry in the first half of 2016 than the whole of last year. As at the end of last month, €14 billion had been invested in projects that will generate 3.7GW of combined new capacity.

In July, DONG said it had won the rights to build the 700MW Borssele 1 and 2, with a bid of €72.70 per MWh. It also invested in the Borkum Riffgrund 2 project, off the coast of Germany, bringing its total offshore capacity to 6.7GW. 

DONG noted that it does not expect the UK's vote to leave the European Union to result in any “fundamental changes” to the offshore sector. DONG has stakes in some of the UK's largest offshore projects, including the 258MW Burbo Bank Extension, the 659MW Walney Extension, the 1.2GW Hornsea 1 and the 573MW Race Bank project.