DJ 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
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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 4,439 5,166 (14 %) 17,197 15,396 12 %
and cancellation fees
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: Ørsted Interim report for the first nine months of 2024
Presentation slides will be available prior to the earnings call at: Investors | Ørsted (orsted.com)
The interim report is available for download at: https://orsted.com/financial-reports For further information, please contact:
Global Media Relations Tom Christiansen +45 99 55 60 17 tomlc@orsted.com
Investor Relations Rasmus Keglberg Hærvig +45 99 55 90 95 IR@orsted.com
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 orsted.com or follow us on Facebook, LinkedIn, Instagram, and X. Attachments . Company announcement 9M 2024.pdf . Ørsted - Q3 2024 - Investor Presentation.pdf . Interim financial report 9M 2024.pdf News Source: Ørsted A/S
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ISIN: DK0060094928 Category Code: QRT TIDM: Orsted Sequence No.: 356993 EQS News ID: 2022257 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
November 05, 2024 01:58 ET (06:58 GMT)
