Orsted

Latest Results (17.12.2024):

Q3 2024 Financial Performance

Orsted reported an operating profit (EBITDA) of DKK 23.6 billion for the first nine months of 2024, compared to DKK 19.4 billion in the same period last year. This increase was partly due to the reversal of cancellation fees and new partnership gains. Excluding these factors, the EBITDA rose by 12% to DKK 17.2 billion, highlighting strong underlying growth.

Offshore Earnings Growth

Earnings from Orsted's offshore sites reached DKK 15.3 billion in the first nine months of 2024, marking an increase of DKK 2.2 billion from the previous year. This growth was driven by the ramp-up of generation at offshore wind farms and higher wind speeds, despite some challenges with electrical infrastructure at Hornsea 1 and 2.

Divestment and Investment Strategy

Orsted's divestment program is progressing well, with a recent agreement to farm down 25% of its ownership in four UK offshore wind farms to Brookfield. This transaction is expected to generate proceeds of DKK 15.7 billion, supporting Orsted's balance sheet and capital structure. Additionally, Orsted has made final investment decisions on two onshore projects in the US, totaling 500 MW in capacity.

Renewable Capacity Expansion

Orsted has achieved significant milestones in expanding its renewable capacity, reaching a total of 18.2 GW. This includes the commissioning of the Mockingbird and Old 300 solar farms in the US. The company also secured Contracts for Difference (CfDs) for the Hornsea 3 and 4 projects in the UK, moving closer to its goal of 20-22 GW of offshore capacity by 2030.

Outlook and Guidance

Orsted has narrowed its full-year EBITDA guidance to DKK 24-26 billion for 2024, reflecting confidence in its financial performance. However, the company has lowered its gross investment guidance by DKK 8 billion to DKK 36-40 billion, indicating a strategic adjustment in its investment plans. Despite challenges, Orsted remains focused on delivering value through its renewable energy projects.