Bilfinger Rethinks Offshore Wind after Profit Warning

German building and services group Bilfinger (OXGBF.SW) said it would have to rethink options for its offshore wind power business, where a writedown contributed to a profit warning.

Bilfinger said late on Wednesday it had written off its 30 million-euro ($39 million) share in a Polish factory for making steel foundations for offshore wind turbines, after the start of production was delayed from this year until 2015 or 2016.

"We have to review our options," Chief Executive Herbert Bodner told analysts on a conference call.

"It's actually not a business that really belongs organically in the power segment. It's more of a construction- related business that has been very successful in the past."

Bilfinger said in May it would bring its offshore wind activities and its power grid construction business together in a new division within its power business segment, which was largely responsible for the profit warning.

The move was part of a reorganisation that has caused upheaval within the company, resulting in the departure of Roland Koch as CEO a month ago.

Bodner blamed some of the problems on delays to offshore wind projects.

"What you can see is a chain of postponements, disappointments, this project is not starting yet, that project is not starting yet," Bodner said.

"The Germans don't get their act together with their power grid lines to make sure that the power that is produced in the Baltic and in the North Sea will be transported to southern Germany," he said.

Globally, the offshore wind power market is growing rapidly. But some large markets, including Germany, have encountered problems with grid connections and supply-chain bottlenecks.

Government subsidies for offshore wind, with its steep costs - large offshore wind farms can cost several billion dollars apiece - are facing rising opposition from consumers across Europe being asked to help foot the bill.

"It's just going on and on and on ... and so even from today's perspective, I think what we have to anticipate is a pretty volatile situation," Bodner said.

(1 US dollar = 0.7680 euro)

(Reporting by Georgina Prodhan; editing by Tom Pfeiffer)