Weaker wind, prices weigh on Fred. Olsen Renewables

Fred. Olsen Renewables AS, the renewable energy business of Norwegian group Bonheur ASA (OSL:BON), delivered lower operating results for the first quarter of 2016.

The business' net profit improved to NOK 148 million (USD 18.1m/EUR 16m) from NOK 139 million a year ago, but its earnings before interest, tax, depreciation and amortisation (EBITDA) fell to NOK 202 million from NOK 310 million. Operating revenues declined to NOK 299 million from NOK 392 million in spite of an increase of capacity as they were affected by lower wind conditions and lower electricity prices, Bonheur said today.

Revenues denominated in GBP were also impacted by higher GBP rates against NOK.

Fred. Olsen Renewables has 582 MW of operating wind farms in Scotland, Norway and Sweden. Of that 212 MW relates to minority interests.

Bonheur's shipping and offshore wind segment, meanwhile, recorded a wider net loss of NOK 126 million, compared to NOK 47 million a year ago.

Operating revenues dropped to NOK 142 million from NOK 264 million as its two jack-up installation vessels undertook yard upgrades.

Overall, the group's profit in the period fell to NOK 211 million from NOK 614 million a year ago, with revenues contracting to NOK 3.29 billion from NOK 3.71 billion.

(NOK 1.0 = USD 0.122/EUR 0.108)

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