ORSTED Orsted

Delivering on business plan with CfD awards for Hornsea 3 and 4 in the UK, a significant divestment, and better than assumed settlements for Ocean Wind. Solid 9M operational earnings and EBITDA guidance narrowed

Ørsted A/S (Orsted)
Delivering on business plan with CfD awards for Hornsea 3 and 4 in the UK, a significant divestment, and better than assumed settlements for Ocean Wind. Solid 9M operational earnings and EBITDA guidance narrowed

05-Nov-2024 / 07:58 CET/CEST


5.11.2024 07:58:29 CET | Ørsted A/S | Interim report (Q1 and Q3)

Today, Ørsted’s Board of Directors approved the interim report for the first nine months of 2024.

Mads Nipper, Group President and CEO of Ørsted, says in a comment to the interim report for the first nine months of 2024:
“I am pleased with our operational performance and financials results. Based on solid 9M earnings, we have narrowed our EBITDA guidance for the year. Furthermore, we have successfully renegotiated and settled contracts related to the close-down of Ocean Wind with a positive outcome, resulting in a net reversal of cancellation fees of DKK 6.4 billion.

“In the first nine months of the year, we have executed on the updated business plan that we presented in February, and we have put more than 2.4 GW of renewable energy capacity into operation. We are on track with our divestment programme, where we have signed an agreement to divest a minority share in four UK assets. Furthermore, we have secured additional value-creating renewable growth opportunities in the UK with the 3.5 GW award for Hornsea 3 and 4, which is a significant contribution to Ørsted's long-term renewable capacity goals.

“Revolution Wind and Sunrise Wind, our two offshore wind projects in the US, are progressing according to the updated construction plan. However, we have seen risks impacting the construction of Revolution Wind, and we are working diligently and with a strong focus to de-risk the continued project execution.”

Guidance
Based on solid 9M earnings, we have narrowed our full-year EBITDA guidance from DKK 23-26 billion to DKK 24-26 billion, excluding earnings from new partnerships and impact from cancellation fees.

We have lowered our gross investments guidance by DKK 8 billion to DKK 36-40 billion due to timing effects across our project portfolio.

Results for 9M 2024
Operating profit (EBITDA) for the first nine months amounted to DKK 23.6 billion compared to DKK 19.4 billion in the same period last year, of which DKK 6.4 billion related to a net reversal of provisions for cancelled projects. EBITDA excluding new partnerships and cancellation fees in 9M 2024 amounted to DKK 17.2 billion, which is an underlying increase of 12 % compared to the same period last year.

Earnings from our offshore sites amounted to DKK 15.3 billion, which was an increase of DKK 2.2 billion compared to the same period last year. The increase was driven by the ramp-up of generation at our offshore wind farms Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, higher wind speeds, and higher prices on our inflation-indexed CfDs and green certificates.

Impairment losses had a negative effect of DKK 0.3 billion in Q3 2024 and DKK 3.4 billion in 9M 2024. The main contributors to the net impairment were our decision to cease execution of FlagshipONE (DKK 1.5 billion) and, for Revolution Wind, the construction delay related to the onshore substation, challenges related to the offshore substation monopile installation work, an additional contingency due to a higher risk assessment, and updated market prices (DKK 3.8 billion). This was partly offset by a positive effect from our Sunrise Wind project (DKK 1.8 billion) due to it being awarded a higher OREC by the State of New York. Furthermore, we saw a positive effect from the decrease in the US long-dated interest rate (DKK 1.4 billion) across our US portfolio.

Return on capital employed (ROCE) came in at 8.1 %. ROCE adjusted for impairment losses and cancellation fees in 9M 2024 was 11.5 %.

Q3 2024

Q3 2023

%

9M 2024

9M 2023

%

EBITDA

9,548

9,173

4 %

23,606

19,403

22 %

- New partnerships

-

4,007

n.a.

-

4,007

n.a.

- Cancellation fees

5,109

-

n.a.

6,409

-

n.a.

- EBITDA excl. new partnerships
and cancellation fees

4,439

5,166

(14 %)

17,197

15,396

12 %

Impairments

(284)

(28,422)

(99 %)

(3,436)

(28,422)

(88 %)

Profit (loss) for the period

5,169

(22,562)

n.a.

6,100

(19,898)

n.a.

Cash flow from operating activities

(1,639)

9,796

n.a.

8,050

22,362

(64 %)

Gross investments

(9,780)

(9,204)

6 %

(25,694)

(25,470)

1 %

Divestments

108

1,735

(94 %)

2,363

(319)

n.a.

Free cash flow

(11,311)

2,327

n.a.

(15,281)

(3,427)

346 %

Net interest-bearing debt

62,817

42,892

46 %

62,817

42,892

46 %

FFO/adjusted net debt

12.6

20.9

(8 %p)

12.6

20.9

(8 %p)

ROCE

8.1

(13.7)

22 %p

8.1

(13.7)

22 %p

Earnings call
In connection with the presentation of the interim report for the first nine months, an earnings call for investors and analysts will be held on Tuesday, 5 November 2024 at 14:00 CET.

The earnings call can be followed live at:

Presentation slides will be available prior to the earnings call at:

The interim report is available for download at:


For further information, please contact: 

Global Media Relations
Tom Christiansen

Investor Relations
Rasmus Keglberg Hærvig

About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,400 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group's revenue was DKK 79.3 billion (EUR 10.6 billion). Visit or follow us on , , Instagram, and .

Attachments


News Source: Ørsted A/S


Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


ISIN: DK0060094928
Category Code: QRT
TIDM: Orsted
Sequence No.: 356993
EQS News ID: 2022257

 
End of Announcement EQS News Service

fncls.ssp?fn=show_t_gif&application_id=2022257&application_name=news&site_id=research_pool~~~9efe1c65-8ece-4ff7-9608-f21c8e0a38a3
EN
05/11/2024

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on Orsted

Roy Külter ... (+3)
  • Roy Külter
  • Steven Boumans
  • Thomas Zlowodzki
DHL DHL GROUP
AKE ARKEMA ... (+25)

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 11/06/2024

Our baseline scenario materialised last night: Donald Trump seems to be on course to win the US presidential election, and the choice of the electorate is unlikely to be challenged. He could end up with a majority in both houses of Congress. US equities will be the first to benefit from this development. In European equities, the biggest winners will be Energy, Media, Metals, Construction & Materials, Financial Services and Insurance. More at risk, however, are the Utilities, Spirits,...

Roy Külter ... (+3)
  • Roy Külter
  • Steven Boumans
  • Thomas Zlowodzki
DHL DHL GROUP
AKE ARKEMA ... (+25)

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 06/11/2024

Notre scénario central s’est concrétisé dans la nuit : Donald Trump remporte la présidentielle américaine, et le choix des électeurs ne devrait pas être contesté. Il pourrait disposer d’une majorité dans les deux assemblées. Les actions américaines en seront les premières bénéficiaires. Sur les actions européennes, les secteurs les plus gagnants seront l’Energie, les Médias, les Métaux, Construction & Materials, Financial Services, Insurance. Sont en revanche plus à risque Utilities, ...

ABGSC Energy Research ... (+6)
  • ABGSC Energy Research
  • Åsne Holsen
  • Daniel Vårdal Haugland
  • Haakon Amundsen
  • John Olaisen
  • Stian Wibstad
Louis Boujard ... (+3)
  • Louis Boujard
  • CFA
  • Philippe Ourpatian

Ørsted : Underlying earnings a shade below our expectations

>Release boosted by reversal of exceptional charges - Ørsted reported yesterday its operating performances for Q3 2024. Adjusted EBITDA came to DKK 9,548m (vs DKK 5,055m forecast by ODDO BHF and DKK 4,657m by the consensus). This significant beat reflects the completion of the negotiation of the contract for Orsted’s exit from Ocean Wind 1 which resulted in lower costs than initially expected at DKK 5.1bn. This amount is recognised in the group’s EBITDA but is not inc...

Louis Boujard ... (+3)
  • Louis Boujard
  • CFA
  • Philippe Ourpatian

Ørsted : Des résultats sous-jacents une peu inférieurs à nos attentes

>Une publication aidée par des reprises de charges exceptionnelles - Ørsted a publié hier matin ses performances opérationnelles pour le T3 2024. L'EBITDA ajusté s'est établi à 9 548 MDKK(contre 5 055 MDKK attendus par ODDO BHF et 4 657 MDKK selon le consensus). Ce dépassement important par rapport aux prévisions est lié à la finalisation de la négociation du contrat pour la sortie d’Orsted et d’Ocean Wind 1 qui se traduit par des frais plus faibles que prévu initiale...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch