The Crown Estate reported a record net revenue profit of £1.1 billion for the second straight year, primarily fueled by a surge in offshore windfarm option fees paid by developers. These profits are linked to leases for six new windfarms set to power eight million homes. The annual option fees contributed significantly to the profit figures, although core profits stood at £366 million. The estate anticipates a normalization of profits after 2026, as stated by CEO Dan Labbad, emphasizing that current profits are likely a short-term spike.
"We always knew the boost to our profits due to offshore wind leasing option fees from round four was short-term. We expect this year to be the high point for these returns before our net revenue profits normalise and move to more steady growth."
The bumper profits were driven by payments from energy companies who secured leases to build six new offshore windfarms in January 2023. These projects could eventually power eight million homes.
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