Danish offshore wind developer Orsted on Wednesday reported a first-quarter core profit above forecasts, driven by an increase in power output and kept its full-year outlook for the year.
Orsted in recent years struggled with soaring costs from supply chain disruption and inflation and last year said it would focus more on Europe amid regulatory challenges and resistance to U.S. wind power from President Donald Trump.
"We have firm ground under our feet and are delivering on our plan. As the refocusing of Orsted continues, we're ready to invest in value-creating opportunities in Europe and select markets in APAC (Asia-Pacific)," CEO Rasmus Errboe said in a statement.
He reiterated that the war in the Middle East underlined the need for Europe's energy transition and independence and bolstered the case for offshore wind farm developments.
Europe, a major importer of fossil fuels, has seen energy prices soar since the U.S.-Israeli strikes on Iran and Teheran's blockage of shipments through the Strait of Hormuz led to a scramble for oil and natural gas.
Orsted's profit before interest, tax, depreciation and amortisation, excluding new partnerships and cancellation fees rose to 9.55 billion Danish crowns ($1.50 billion) from a year-earlier 8.57 billion, above an average forecast of 9.47 billion crowns seen in a company-provided poll.
The company stood by a full-year outlook from February of a core profit above 28 billion crowns, and gross investments of between 50 billion and 55 billion. It reiterated plans to pay dividends for 2026.
($1 = 6.3686 Danish crowns)
(Reuters - Reporting by Louise Rasmussen, editing by Terje Solsvik)