TIDM44ZX
Orsted A/S
03 November 2021
Interim report for the first nine months of 2021
Our robust business model, active approach to risk management,
and strong earnings in 'Bioenergy & Other' ensured good
financial results despite low wind speeds and unusual market
conditions . We are on track to meet our full-year guidance.
Today, Ørsted's Board of Directors approved the interim report
for the first nine months of 2021.
Our operating profit (EBITDA) totalled DKK 16.0 billion, an
increase of DKK 2.9 billion compared to the same period last year.
Our earnings included a gain of DKK 5.3 billion from the 50 % farm
down of Borssele 1 & 2 in Q2 2021.
In most of Q3, we continued to see lower than normal wind
speeds, which had an adverse impact on earnings from renewable
assets in operation, which amounted to DKK 10.3 billion for the
first nine months of the year. This was a decrease of DKK 1.3
billion compared to 9M 2020 despite ramp-up of generation from new
assets and the receipt of CFDs for the last 400 MW of capacity from
Hornsea 1. The total effect from lower wind speeds in 9M 2021
amounted to approx. DKK 2.5 billion compared to 9M 2020.
Our Bioenergy & Other business achieved significantly higher
earnings compared with the same period last year, despite the
divestment of our Danish power distribution, residential customer,
and city light businesses in August 2020. This was due to
exceptional performance by our CHP plants and high earnings from
our gas business.
Our active approach to risk management, with a strategy to hedge
prices in order to protect Ørsted against market price volatility,
has significantly limited the impact of market prices on our
earnings in the third quarter which had very bullish and volatile
energy prices. Our trading department has done a great job
navigating Ørsted well through these unusual market conditions.
Net profit amounted to DKK 7.6 billion and return on capital
employed (ROCE) came in at 12.9 %.
EBITDA in 2021 is expected to be DKK 15-16 billion excl. new
partnerships. We expect an outcome in the low end of the guided
range, which is unchanged relative to the guidance in the H1 2021
report. This guidance is based on an assumption of normal wind
speeds in the remainder of the year. Our EBITDA guidance does not
include earnings from new partnerships during the year, which means
that the gain from the Borssele 1 & 2 farm-down is excluded
from our full-year guidance.
We also maintain our full-year gross investment guidance of DKK
39-41 billion.
Mads Nipper, Group President and CEO of Ørsted, says in a
comment to the interim report for the first nine months of
2021:
"We are very pleased that our robust business model and active
approach to risk management, together with strong earnings in
'Bioenergy & Other' resulted in good financial results in the
third quarter despite low wind speeds and unusual market
conditions. We are still on track to meet our full-year
guidance.
We made good progress on the commercial development of our
Borkum Riffgrund 3 project, which we are preparing for a final
investment decision by the end of 2021. First, we signed an
agreement with Glennmont Partners to farm-down 50 % of the 900 MW
German wind project Borkum Riffgrund 3. We have also signed
long-term power purchase agreements on Borkum Riffgrund 3 with REWE
(100 MW), Covestro (100 MW), and Amazon (250 MW) and have an
advanced pipeline of additional PPAs. These agreements are a strong
testament to the attractiveness of our offshore wind assets and an
important milestone in making the project fully ready for the final
investment decision of these strategically important assets, which
will further reinforce our market position in Germany.
In our emerging offshore markets, we entered into new strategic
partnerships in Vietnam and Poland. Both countries have ambitious
renewable energy targets, and we want to be a reliable long-term
partner in these countries.
We also made very good progress on our renewable hydrogen and
green fuel business, with both the Green Fuels for Denmark (GFDK)
project, our Lingen Green Hydrogen project with bp, and the
HySCALE100 project being shortlisted as Important Projects of
Common European Interest (IPCEI). We continue to see strong
momentum within renewable hydrogen both in Europe and worldwide and
are, indeed, pleased to be able to progress these key projects in
our hydrogen pipeline.
Overall, we are very pleased with our strategic and commercial
progress. This year, we have been able to secure 3.6 GW of new
offshore wind capacity in 2021 and now have 18 GW of firm offshore
wind capacity secured towards our 30 GW target by 2030, which is a
critical step in reaching our ambition of 50 GW of installed
renewable capacity by 2030 and a strong testament to our commercial
strength in offshore wind."
Financial key figures for 9M 2021:
DKK million Q3 2021 Q3 2020 % 9M 2021 9M 2020 %
=========================== ======== ======== ======== ========= ========= ========
EBITDA 2,984 3,360 (11 %) 16,043 13,121 22 %
Profit (loss) for the (47
period 487 12,034 (96 %) 7,629 14,527 %)
Cash flows from operating
activities 246 1,941 (87 %) 11,480 9,710 18 %
Gross investments (8,757) (9,263) (5 %) (27,555) (18,328) 50 %
(100
Divestments 7 20,506 %) 10,567 20,558 (49 %)
Free cash flow (8,504) 13,184 n.a. (5,508) 11,940 n.a.
Net interest-bearing
debt 21,211 8,216 158 % 21,211 8,216 158 %
FFO/adjusted net debt 42 % 80 % (38 %p) 42 % 80 % (38 %p)
ROCE 13 % 9 % 4 %p 13 % 9 % 4 %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
Earnings call
In connection with the presentation of the interim report, an
earnings call for investors and analysts will be held on Wednesday,
3 November 2021 at 14:00 CET.
Denmark: +45 78 15 01 08
The UK: +44 333 300 9035
The US: +1 844 625 1570
The earnings call can be followed live at:
https://edge.media-server.com/mmc/p/v757tb3e
Presentation slides will be available prior to the earnings call
at:
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
The interim report is available for download at:
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
Attachments to this company announcement:
Interim financial report 9M 2021 (pdf)
Company announcement (pdf)
Investor presentation (pdf)
This information is provided by Reach, the non-regulatory press
release distribution service of RNS, part of the London Stock
Exchange. 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.
Reach is a non-regulatory news service. By using this service an
issuer is confirming that the information contained within this
announcement is of a non-regulatory nature. Reach announcements are
identified with an orange label and the word "Reach" in the source
column of the News Explorer pages of London Stock Exchange's
website so that they are distinguished from the RNS UK regulatory
service. Other vendors subscribing for Reach press releases may use
a different method to distinguish Reach announcements from UK
regulatory news.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NRAUPGMWGUPGUMW
(END) Dow Jones Newswires
November 03, 2021 03:42 ET (07:42 GMT)
Orsted 40 (LSE:44ZX)
Historical Stock Chart
From Nov 2024 to Dec 2024
Orsted 40 (LSE:44ZX)
Historical Stock Chart
From Dec 2023 to Dec 2024
