TIDM44ZX
Orsted A/S
29 October 2019
Interim report for the first nine months of 2019
Strong results and continued strategic progress
Today, Ørsted's Board of Directors approved the interim report
for the first nine months (9M) of 2019. We achieved an operating
profit (EBITDA) of DKK 12.9 billion, up 19% compared to 9M 2018,
which keeps us well on track to deliver on our full-year
guidance.
Earnings from our offshore wind farms in operation increased by
23%, driven by ramp-up of generation from new wind farms. In
addition, our onshore wind business contributed positively to the
year-on-year development as did higher earnings from our trading
activities. This was partly offset by higher project development
costs, a positive outcome of a gas sourcing arbitration case in
2018, and a temporarily negative effect from our gas at storage due
to the substantial drop in gas prices during 2019.
The green share of power and heat generation increased from 71%
to 83%.
Return on capital employed (ROCE) increased to 29%, up 6
percentage points compared to 9M 2018.
On 25 September 2019, we increased our EBITDA (business
performance) guidance from DKK 15.5-16.5 billion to DKK 16-17
billion due to the dismissal of the claims in the Elsam competition
case as well as strong wind speeds in August.
Our directional EBITDA for each business unit and gross
investment guidance are unchanged relative to the guidance in the
interim report for the first half year of 2019. Gross investments
are expected to amount to DKK 21-23 billion.
Today, we have announced an update to our long-term financial
targets that were presented at our Capital Markets Day on 28
November 2018. We refer to the separate company announcement.
CEO and President Henrik Poulsen says:
"We had a very strong third quarter with high wind speeds and
ramp-up generation from new wind farms. Operating profit for the
first nine months of the year amounted to DKK 12.9 billion, which
was in line with our expectations and keeps us well on track to
deliver on the full-year guidance of DKK 16-17 billion.
In September, we signed an agreement to divest our Danish power
distribution (Radius), residential customer and city light
businesses to SEAS-NVE. The agreement ensures an attractive
transaction for Ørsted's shareholders and provides a good future
home for the customers and our highly skilled employees. We will
use the proceeds from the divestment to continue our global
investments in green energy. We expect that the transaction will be
closed in the first half of 2020.
In early October 2019, the last of the 174 turbines was
installed at Hornsea 1. The offshore wind farm is currently
undergoing a period of extensive testing and commissioning and is
expected to be commercially operational in Q4 2019. Hornsea 1 is
the world's largest offshore wind farm with a capacity of 1,218MW
and will supply green power to more than 1 million UK homes.
We have selected GE as preferred turbine supplier for our
Mid-Atlantic cluster (Ocean Wind and Skipjack) in the US. These
projects will pioneer the deployment of GE's Haliade-X 12MW
turbine, continuing our track record as a first mover on new
technology. We have also signed contracts with Siemens Gamesa to
supply turbines for our offshore wind projects in Taiwan (Greater
Changhua 1 & 2a) and the Northeast cluster in the US (Sunrise
Wind, Revolution Wind and South Fork).
In July, New York selected Sunrise Wind as the preferred bidder
for an 880MW offshore wind farm. In October, Sunrise Wind signed a
25-year power purchase agreement with the New York State Energy
Research & Development Authority (NYSERDA). The fixed all-in
price is USD 110.37 per MWh(1) . Sunrise Wind is a 50-50
partnership between Ørsted and Eversource, our partner in the New
England area. Subject to Ørsted's and Eversource's final investment
decision, the offshore wind farm is expected to be completed by
2024.
In Poland, we have been selected by PGE, Polska Grupa
Energetyczna, to commence discussions regarding their sale of a 50%
stake in two offshore wind projects in the Baltic Sea with a total
capacity of up to 2.5GW.
In August, we decided to build the 230MW onshore wind farm Plum
Creek in Nebraska, USA. Construction has commenced, and we expect
the wind farm to be completed during Q4 2020.
We are very pleased with the strong results and strategic
progress during the third quarter as we continue to expand our
position as a global leader in green energy."
Financial key figures for Q3 and 9M 2019:
DKK million Q3 2019 Q3 2018 % 9M 2019 9M 2018 %
============================== ======== ======== ====== ========= ======== ======
EBITDA 4,116 2,225 85% 12,871 10,823 19%
Profit (loss) for the period
from cont. operations 1,443 418 245% 5,175 4,326 20%
Profit (loss) for the period
from discont. operations 34 (13) Na. (27) (24) 13%
Profit (loss) for the period 1,477 405 265% 5,148 4,302 20%
Cash flows from operating
activities 871 (117) Na. 8,263 2,778 197%
Gross investments (7,222) (4,385) 65% (14,489) (9,565) 51%
Divestments 260 380 (32%) 2.927 1,201 144%
Free cash flow (6,091) (4,122) 48% (3,299) (5,586) (41%)
Net interest-bearing debt 12,082 8,957 35% 12,082 8,957 35%
FFO/adjusted net debt (last
12 months) 47% 42% 5%p 47% 42% 5%p
ROCE (last 12 months) 29% 23% 6%p 29% 23% 6%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 financial
report a conference call for investors and analysts will be held on
Wednesday 30 October 2019 at 10:00 CET.
Denmark: +45 35 44 55 83
UK: +44 203 194 0544
US: +1 855 269 2604
The conference call can be followed live at:
https://orsted.eventcdn.net/2019q3/
Presentation slides will be available prior to the conference
call at:
orsted.com/en/Financial-reports-and-presentations
The interim report is available for download at:
orsted.com/en/Financial-reports-and-presentations
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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