RCS - Orsted A/S - Interim report for the first half year of 2023

Oersted A/SAnnouncement

10/08/2023 08:00

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RNS Number : 9228I  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 %
 FFO/adjusted net debt                17.7 %   39.0 %   (21 %p)  17.7 %    39.0 %    (21 %p)
 ROCE                                 13.2 %   14.8 %   (2 %p)   13.2 %    14.8 %    (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
(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) (https://orsted.com/en/investors)

 

The interim report is available for download at:
https://orsted.com/financial-reports (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
(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
(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
(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 (mailto: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 (https://orsted.com/) or follow us on
Facebook (https://www.facebook.com/orsted) , LinkedIn
(https://www.linkedin.com/company/orsted) , Instagram, and Twitter
(https://www.twitter.com/orsted) .

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