Balfour Beatty sells wind farm transmission system

• 9 years ago (2015-02-16)
• Junior Isles

Europe 1061 Renewables 752

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Balfour Beatty, the largest construction contractor in the UK, has today announced that it has sold 80 per cent of the transmission system for the Thanet offshore transmission project (Thanet Ofto) to Equitix, an infrastructure fund, for £40 million ($61.5 million).

The Thanet Ofto connects the 100 turbines operating at the 300 MW offshore Thanet wind farm to the onshore transmission grid to supply 200 000 British homes.

Balfour Beatty was named preferred bidder to work on the Thanet Ofto in 2010, but the deal was only completed last December after a £164 million ($252 million) exchange.

Following a business review under new chief executive, Leo Quinn, the company itself last month increased the estimated value of its infrastructure investments from £1.05 billion ($1.58 billion) to £1.3 billion ($2 billion).

After taking on his new role following a string of profit warnings caused by project overruns, rising costs and under-pricing of contracts, Quinn said: “This disposal validates the directors’ valuation of the investments portfolio, which was updated last month, and clearly demonstrates the investment business’s ongoing ability to deliver significant value for the group.”

Commenting on Ofto, Quin added: “It remains a key market, which is why we have retained 20per cent ownership in Thanet, and we look forward to working with our partner, Equitix, to ensure the long-term success of this project.”