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ABB Says DolWin1 Project On Time After $50 Million Delay

ABB Ltd. (ABBN), the world’s largest maker of power grids, said its DolWin1 offshore wind-power connection will be completed on time after delays to launching a converter platform contributed to $50 million in costs.

“We would expect the link to be ready for commissioning by the end of the year,” as long as permits are obtained as scheduled and there are no weather disruptions, Thomas Schmidt, a spokesman at Zurich-based ABB, said in an e-mail.

The manufacturer won a $700 million order in 2010 to supply an 800-megawatt transmission link from the DolWin1 offshore wind farms in the North Sea to the German grid. Chief Executive Officer Joe Hogan said on Oct. 25 that the sailing date for the converter platform was postponed as ABB awaited regulatory clearance. Delays to DolWin1 led to charges of $50 million last year, Antonio Ligi, an ABB spokesman, said today.

ABB rose as much as 1.8 percent to 21.75 Swiss francs, the biggest intraday gain since May 3, and was trading up 1.6 percent at 2:43 p.m. in Zurich. The stock has increased 20 percent this year, valuing the equipment maker at 50.3 billion francs ($51.9 billion).

DolWin2, a larger offshore connection deal worth about $1 billion that will be commissioned in 2015, is progressing on schedule, and the fabrication of the offshore platform is making good progress, Schmidt said.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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