195;rsted A/S Interim Report For The First Quarter 2020: Strong Q1 Results
April 29 2020 - 01:31AM
Dow Jones News
TIDMORSTED
Today, Ørsted's Board of Directors approved the interim report for
the first quarter of 2020. Our operating profit (EBITDA) amounted to DKK
6.8 billion, a 33% increase compared to the same period last year.
Earnings from offshore and onshore wind farms in operation increased by
25% to DKK 5.2 billion driven by ramp-up of generation from Hornsea 1,
Lockett, and Sage Draw. Furthermore, we had high wind speeds in Europe
throughout Q1 2020.
Net profit amounted to DKK 3.3 billion and return on capital employed
(ROCE) came in at 11%.
The green share of our heat and power generation increased from 80% to a
new high of 90%.
On 4 March 2020, we increased our EBITDA (business performance) guidance
from DKK 15-16 billion to DKK 16-17 billion due to updated assumptions
regarding the divestment of the transmission asset for Hornsea 1.
At this point in time, we have no indication that the COVID-19 situation
will significantly impact our earnings for the year, and thus we
re-iterate our most recent EBITDA guidance of DKK 16-17 billion in 2020.
We also re-iterate our expectation of gross investments of DKK 30-32
billion in 2020.
Henrik Poulsen, CEO and President of Ørsted, says:
"Despite the COVID-19 crisis and its profound impact on societies around
the world, we have had a very good start to the year with strong
financial results and solid operational performance across the entire
business.
We activated our Corporate Crisis Management Organisation in early March
to steer Ørsted through the global COVID-19 crisis. Our focus has
been on the health and well-being of our employees and their families
and the communities we are part of.
During the last couple of months, our asset base has been fully
operational with availability rates for our wind farms and power
stations within the normal range.
In March, we commissioned the 338MW onshore wind farm Sage Draw in the
US.
Our construction projects all remain on track. However, across our
projects, we see an increased risk of component and service delays from
suppliers impacted by COVID-19. We collaborate closely together with our
partners to mitigate these situations as best possible and without
compromising health and safety standards. Based on our current outlook,
we believe the COVID-19 related impact on our construction projects will
be limited both in terms of timing and economics.
Our offshore development projects in the US are moving forward, although
at a slower pace than originally expected due to a combination of the
Bureau of Ocean Energy Management's (BOEM) prolonged analysis of the
cumulative impacts from the build-out of US offshore wind projects, and
now also COVID-19 effects. The two earliest projects in our pipeline;
the 120MW Skipjack project in Maryland and the 130MW South Fork project
in New York, are most exposed to the risk of delays. For Skipjack it is
no longer realistic to receive the 'Notice of Intent' from BOEM in due
time to meet commissioning date in late 2022. Therefore, we now expect
to commission the wind farm approx one year later. For the South Fork
project, which was also planned for a 2022 commissioning date, we have
received the 'Notice of Intent', but have not received a confirmed
permit schedule from the federal government outlining when the
'Construction and Operations Plan' (COP) will be received. This combined
with impacts from the COVID-19 related shutdowns in New York, will also
very likely delay South Fork to beyond 2022.
For our largest awarded US development projects -- Revolution Wind,
Ocean Wind, and Sunrise Wind -- with expected commissioning in 2023 and
2024, we also see increased risk of delays. We have submitted our COP
applications for Ocean Wind and Revolution Wind and are awaiting BOEM to
issue their 'Notices of Intent', outlining the timeline for COP
approval. For Sunrise Wind in New York, we are currently unable to
progress our offshore site surveys due to COVID-19 restrictions, which
adversely impacts our COP application process. So, for these three
projects, we need more visibility on the path to COP approval before
concluding whether commissioning in 2023-24 remains realistic. We expect
to have more clarity after summer.
Ørsted is a strong company with a resilient business model, and we
are in a much less vulnerable position than many other sectors that are
deeply impacted by the crisis. However, the impact of COVID-19 will have
material ripple effects throughout all economies and sectors, and we
cannot be complacent about its potential impact on us. Thus, we remain
vigilant about the unfolding crisis and have identified a number of
risks that potentially can impact our activities, including the ones
listed in our company announcement on 25 March.
I would like to extend a special and heartfelt thank you to all
Ørsted employees and our partners for doing an exceptional job in
maintaining a strong focus on health and safety during these challenging
times, while also maintaining business continuity across Ørsted's
critical operations and projects."
Financial key figures for Q1 2020:
DKK million Q1 2020 Q1 2019 %
-------------------------------------------------- ------- ------- ------
EBITDA 6,805 5,130 33%
Profit (loss) for the period from cont. operations 3,346 2,639 27%
Profit (loss) for the period from discont.
operations (28) (43) (35%)
Profit (loss) for the period 3,318 2,596 28%
Cash flows from operating activities (428) (118) 263%
Gross investments (5,308) (3,899) 36%
Divestments 7 2,678 n.a.
Free cash flow (5,729) (1,339) 328%
Net interest-bearing debt 27,084 9,111 197%
FFO/adjusted net debt 21% 46% (25%p)
ROCE 11% 28% (17%p)
-------------------------------------------------- ------- ------- ------
For further information, please contact:
Media Relations Investor Relations
Martin Barlebo Allan Bødskov Andersen
+45 99 55 95 52 +45 99 55 79 96
Conference call
In connection with the presentation of the interim report, a conference
call for investors and analysts will be held on Wednesday, 29 April 2020
at 14:00 CEST.
Denmark: + 45 32 71 49 98
UK: + 44 800 408 7373
US: + 1 877 890 2416
Room number: 233127
Participant PIN: 8564
The conference call can be followed live at:
https://edge.media-server.com/mmc/p/tugmuzb3
Presentation slides will be available prior to the conference call at:
https://orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
The interim report is available for download at:
https://www.globenewswire.com/Tracker?data=yu1WItylaOww2K87Lu6WtIZkz2jyPAWuCvPzN-sSAWvsjDjUNjmAcQtD9rRG4A8Jq1oXUyCRgu6OYhC91VbPjh666d0fpmDzDMzFN7LX-mif6UzLfOMmvVQo8tcc1w0bci8ruBeyoZIClrKEI6ViABYu0EksGL5wpFfJ5Cmt6gUXkE7--lmxA1JZGdCI2LtjLwTOWoFtfuDR9M4k8FQMx9zT9luDza2aAvHrfYK4z65DBVaQbsjHKOZnAxmKRNFt
https://orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
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, and bioenergy plants, and
provides energy products to its customers. Ørsted ranks #1 in
Corporate Knights' 2020 index of the Global 100 most sustainable
corporations in the world and is recognised on the CDP Climate Change A
List as a global leader on climate action. Headquartered in Denmark,
Ørsted employs 6,500 people. Ørsted's shares are listed on
Nasdaq Copenhagen (Orsted). In 2019, the group's revenue was DKK 67.8
billion (EUR 9.1 billion). Visit orsted.com or follow us on Facebook,
LinkedIn, Instagram and Twitter.
Attachments
-- 29APR2020_Company announcement_Ørsted_Q1 2020
https://ml-eu.globenewswire.com/Resource/Download/761751d2-a7ce-4cc2-aaf2-b0c6c3c5e4df
-- Ørsted - Q1 2020 - Investor presentation - 20200429
https://ml-eu.globenewswire.com/Resource/Download/db9c91ac-50c5-49c8-981a-234872e89699
-- Ørsted - Interim financial report - Q1 2020
https://ml-eu.globenewswire.com/Resource/Download/68c5a922-58b1-4998-9d81-9db3060db894
(END) Dow Jones Newswires
April 29, 2020 02:16 ET (06:16 GMT)
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