RCS - Orsted A/S - Annual report for 2021

Oersted A/SAnnouncement

02/02/2022 07:40

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RNS Number : 4439A  Orsted A/S  02 February 2022

 

Annual report for 2021

 

Ørsted achieved significant results, both strategically, operationally, and
financially, despite an extraordinary year with various external factors
significantly impacting the markets where we operate.

Today, Ørsted's Board of Directors approved the annual report for 2021.

 

Our operating profit (EBITDA) totalled DKK 24.3 billion, an increase of
DKK 6.2 billion compared to 2020. Our earnings included a gain of DKK 8.5
billion from the 50 % farm-downs of Borssele 1 & 2 and Greater Changhua 1.
Operating profit excluding these new partnerships amounted to DKK 15.8
billion, which compares to our guidance of DKK 15-16 billion at the beginning
of the year.

 

Thus, we came in well in line with our expectations and delivered strong
financial results despite unforeseen negative impacts during the year,
including lower wind speeds, the European energy crunch, and provisions due to
updated wake assumptions and cable protection system issues at some of our
offshore wind farms. This was due to exceptionally good performance by our CHP
plants and our gas business.

 

Net profit amounted to DKK 10.9 billion, and return on capital employed (ROCE)
came in at 15 %.

 

Our green share of heat and power generation ended at 90 % in 2021, the same
as last year.

 

The Board of Directors recommends a dividend of DKK 12.5 per share (DKK 5.3
billion in total), up 8.7 % and in line with our dividend policy.

 

 

Mads Nipper, Group President and CEO of Ørsted, says in a comment to the
annual report for 2021:

"We successfully navigated the challenges during the year, and we have
achieved significant results in 2021, both strategically, operationally, and
financially.

 

We secured 4.5 GW of firm offshore wind capacity in tenders and auctions,
corresponding to 25 % of the total awarded capacity in 2021 and 50 % above our
strategic ambition of adding 3 GW offshore wind per year. This strongly
solidifies our global leadership position and proves our ability to
differentiate and compete in offshore wind despite increasing competition. In
the US, we were awarded 1,148 MW in New Jersey for our Ocean Wind 2 project
and 846 MW in Maryland for our Skipjack 2 project. In Poland, we were awarded
2,543 MW for our Baltica 2 & 3 projects together with our partner PGE.

 

Within Onshore, we added 1.2 GW of firm capacity through organic growth and
acquisitions in Europe and the US, and we installed our 1,000th onshore wind
turbine.

 

These very strong contributions increased our firm capacity to 26.1 GW from
20.4 GW at the end of 2020 and keeps us well on track to deliver on our 2030
ambition of 50 GW renewable capacity.

 

In our renewable hydrogen and green fuels business, we also saw strong
progress during the year, with four of our European projects progressing in
the Important Projects of Common European Interest (IPCEI) funding process in
the EU programme, and we now await the final IPCEI approval by the EU
Commission and the subsequent funding commitment. In addition, we have entered
into several other partnerships with the aim of exploring and developing
renewable hydrogen and green fuels, including e-methanol, both in the US and
in Europe.

 

We achieved a strong operational performance in 2021, with our assets
remaining fully operational and with normal availability rates. We are
currently constructing two of the world's largest offshore wind farms, Hornsea
2 in the UK and Greater Changhua 1 & 2a in Taiwan, and we expect to
commission the two wind farms in the first and second half of 2022,
respectively.

 

We expect operating profit, excluding new partnerships, to be DKK 19-21
billion in 2022, positively impacted by ramp-up from new wind and solar
assets. Gross investments for 2022 are expected to amount to DKK 38-42
billion, reflecting a high level of activity in our build-out of renewable
assets.

 

We have come a long way, and we have built a strong position as the undisputed
global leader in offshore wind. As we have demonstrated that large-scale
offshore wind is feasible and scalable, we will continue to apply our courage
and capability to innovate, scale, and accelerate the transformation of the
world's energy systems and thereby continue to be a catalyst for a world that
runs entirely on green energy."

 

 

 

Financial key figures for 2021:

 

 DKK million                          Q4 2021   Q4 2020  %        FY 2021   FY 2020   %
 EBITDA                               8,253     5,003    65 %     24,296    18,124    34 %
 Profit (loss) for the period         3,258     2,189    49 %     10,887    16,716    (35 %)
 Cash flow from operating activities  668       6,756    (90 %)   12,148    16,466    (26 %)
 Gross investments                    (11,752)  (8,639)  36 %     (39,307)  (26,967)  46 %
 Divestments                          10,952    (1,519)  n.a.     21,519    19,039    13 %
 Free cash flow                       (132)     (3,402)  (96 %)   (5,640)   8,538     n.a.
 Net interest-bearing debt            24,280    12,343   97 %     24,280    12,343    97 %
 FFO/adjusted net debt                31 %      65 %     (34 %p)  31 %      65 %      (34 %p)
 ROCE                                 15 %      10 %     5 %p     15 %      10 %      5 %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 annual report, an earnings call for
investors and analysts will be held on Wednesday, 2 February 2022 at 14:00
CET.

 

Denmark: +45 78 72 32 50

The UK: +44 333 300 9031

The US: +1 833 249 8404

 

The earnings call can be followed live at:

https://edge.media-server.com/mmc/p/qr8ym6nd
(https://edge.media-server.com/mmc/p/qr8ym6nd)

 

Presentation slides will be available prior to the earnings call at:

www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
(http://www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0)
 

 

The annual report is available for download at:

www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
(http://www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0)
 

 

Attachments to this company announcement:

Annual report 2021 (pdf)

Company announcement (pdf)

Investor presentation (pdf)

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