TIDM44ZX
Orsted A/S
10 August 2023
Interim report for the first half year of 2023 - continued
strong financial performance with high earnings in our offshore
business and several new partnerships
Today, Ørsted's Board of Directors approved the interim report
for the first half year of 2023.
Operating profit (EBITDA) for the first half year was in line
with our expectations and amounted to DKK 10.2 billion.
Earnings from offshore sites amounted to DKK 9.0 billion, which
was DKK 3.3 billion higher than in the same period last year.
Net profit amounted to DKK 2.7 billion, and return on capital
employed (ROCE) came in at 13 %.
Mads Nipper, Group President and CEO of Ørsted, says in a
comment to the interim financial report for the first half year of
2023:
"We're pleased with the results for the first half year of 2023,
where our Offshore business is back with strong earnings. We're
also very pleased to have announced several strategic updates and
partnerships leading up to and during our Capital Markets Day in
London in June.
Among significant strategic milestones during the quarter, we
received development consent for Hornsea 4, one of the world's
largest offshore wind farms with a capacity of up to 2.6 GW.
Furthermore, we entered into a partnership with ESB, Ireland's
leading utility company, to jointly develop an Irish offshore wind
portfolio and signed an agreement to acquire Eversource's 50 %
interest in Lease Area 500 in the US. With this added seabed, our
portfolio of north-eastern US lease rights amounts to more than 4
GW, making Ørsted's lease capacity the largest in the region.
We're pleased that New Jersey has enacted a law that allows
Ocean Wind 1 to access and retain all federal tax credits without
any additional costs to New Jersey ratepayers. This is an important
and necessary step to ensure the project's viability following the
substantial cost increases experienced across the US offshore
projects.
Finally, as the first energy developer, we've committed to reuse
or recycle all solar panels from our global portfolio of solar
farms with immediate effect."
We maintain our EBITDA guidance of DKK 20-23 billion excluding
earnings from new partnerships during the year. However, compared
to the guidance provided in our annual report for 2022, we now
expect higher earnings in Offshore than initially announced. In
contrast, we expect earnings for our CHP plants to drop by approx.
DKK 4 billion compared to 2022, rather than by approx. DKK 3
billion.
We lower our gross investment guidance for 2023 by DKK 6 billion
to DKK 44-48 billion, primarily due to timing. However, we expect
to spend approx. DKK 6 billion on acquiring PSEG's ownership share
of Ocean Wind 1 and Eversource's ownership share of Lease Area 500
in the US. As these transactions are with non-controlling
shareholders, they are not included in 'Gross investments', but
they are included in 'Net investments'.
Financial key figures for H1 2023:
DKK million Q2 2023 Q2 2022 % H1 2023 H1 2022 %
================================= ======== ======== ======== ========= ========= ========
EBITDA 3,320 3,615 (8 %) 10,230 13,044 (22 %)
- New partnerships 0 0 n.a. 0 1,610 n.a.
- EBITDA excl. new partnerships 3,320 3,615 (8 %) 10,230 11,434 (11 %)
Profit (loss) for the
period (538) 269 n.a. 2,664 5,970 (55 %)
Cash flow from operating
activities 2,447 2,355 4 % 12,566 2,318 442 %
Gross investments (7,498) (6,372) 18 % (16,266) (13,204) 23 %
Divestments (2,038) 267 n.a. (2,054) 2,194 n.a.
Free cash flow (7,089) (3,750) 89 % (5,754) (8,692) (34 %)
Net interest-bearing
debt 43,924 41,449 6 % 43,924 41,449 6 %
17.7 39.0 17.7 39.0
FFO/adjusted net debt % % (21 %p) % % (21 %p)
13.2 14.8 13.2 14.8
ROCE % % (2 %p) % % (2 %p)
================================= ======== ======== ======== ========= ========= ========
Earnings call
In connection with the presentation of the interim report for
the first half year, an earnings call for investors and analysts
will be held on Thursday, 10 August 2023 at 15:00 CEST.
Denmark: +45 78 76 84 90
International: +44 203 769 6819
USA: +1 646 787 0157
PIN: 994005
The earnings call can be followed live at:
https://orsted-events.eventcdn.net/events/interim-report-Q2-2023
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
Attachments to this company announcement:
Interim financial report H1 2023 -
http://www.rns-pdf.londonstockexchange.com/rns/9228I_3-2023-8-10.pdf
Company announcement -
http://www.rns-pdf.londonstockexchange.com/rns/9228I_1-2023-8-10.pdf
Investor presentation -
http://www.rns-pdf.londonstockexchange.com/rns/9228I_2-2023-8-10.pdf
For further information, please contact:
Media Relations
Martin Balebo
+45 99 55 95 52
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. 8,700 people. Ørsted's shares are listed on
Nasdaq Copenhagen (Orsted). In 2022, the group's revenue was DKK
132.3 billion (EUR 17.8 billion). Visit orsted.com or follow us on
Facebook , LinkedIn , Instagram, and Twitter .
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END
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