A few days before Christmas, Danish offshore wind energy giant DONG Energy made two big announcements which should keep investors happy, announcing it had divested itself of 50% of the Race Bank Offshore Wind Farm while simultaneously increasing guidance for 2016.
To begin with, DONG Energy announced that it had entered into an agreement to divest 50% of the 573 megawatt (MW) Race Bank Offshore Wind Farm to Macquarie European Infrastructure Fund 5 and Macquarie Capital, both receiving equal interests. DONG Energy is currently in the process of constructing the offshore wind project approximately 17 miles off the coast of Lincolnshire, England. The project is expected to be commissioned in 2018, and will generate enough electricity to supply more than 400,000 British homes each year.
“I welcome Macquarie as partner on Race Bank,” said Samuel Leupold, Executive Vice President and CEO of Wind Power at DONG Energy. “They have successfully invested in infrastructure projects world-wide and have experience in offshore wind from previous investments. We have seen a high level of interest from a number of potential investors in Race Bank. This proves that our partnership model continues to be attractive.”
“We are delighted to partner with DONG Energy on the Race Bank Offshore Wind Farm,” added Mark Dooley, Head of Energy and Infrastructure, Macquarie Capital Europe. “DONG Energy is an industry leader and pioneer in offshore wind power development globally. Macquarie Group launched in the UK in 1989 and has since invested GBP 6 billion of capital into European renewables – and this further demonstrates our ongoing focus and commitment to the offshore wind sector.”
As a result of the farm-down of 50% of Race Bank, DONG Energy was able to also increase its Group operating profit guidance up to DKK 24 to 25 billion for 2016, up from a range of DKK 20 to 23.
“We have had a really good year in DONG Energy and made significant strategic and operational progress in all business units,” explained Henrik Poulsen, DONG Energy’s CEO. “We have continued the green transformation and seen significant growth in our operating profit. All business units have delivered better than expected or to the high end of our expectations, and the divestment of 50% of the Race Bank Offshore Wind Farm has triggered the increase in our EBITDA guidance.”