RCS - Orsted A/S - Interim report for the first nine months of 2020

Oersted A/SAnnouncement

28/10/2020 07:15

RNS Number : 4562D
  
Orsted A/S
  
28 October 2020
  
 

 
Interim report for the first nine months of 2020
 
Strong financial results. Portfolio transformation completed.

Today, Ørsted's Board of Directors approved the interim report for the first nine months (9M) of 2020. Our operating profit (EBITDA) amounted to DKK 13.1 billion, a 2% increase compared to the same period last year. 
 
Earnings from offshore and onshore wind farms in operation increased by 16% to DKK 11.6 billion driven by the ramp-up of power generation from Hornsea 1, Borssele 1 & 2, Lockett, Sage Draw, and Plum Creek. 
 
In August, we closed the divestment of our Danish power distribution, residential customer, and city light businesses. The transaction resulted in a gain of DKK 11.1 billion. As a result, net profit amounted to DKK 14.6 billion. 
 
Return on capital employed (ROCE) came in at 9%. 
 
The green share of our heat and power generation increased from 83% to 89%. 
 
Our EBITDA guidance is unchanged relative to the guidance in our interim financial report for H1 2020, and thus we reiterate our EBITDA guidance of DKK 16-17 billion in 2020. We maintain our expectations for gross investments of DKK 28-30 billion in 2020.
 
Henrik Poulsen, CEO and President of Ørsted, says:
"Despite the tenacious COVID-19 pandemic, our operations and financial performance in Q3 remain stable and fully in line with our expectations from the beginning of the year.



In Q3 2020, we reached an important strategic milestone for Ørsted as we completed our portfolio transformation into a global renewable energy company with the divestment of our Danish power distribution (Radius), residential customer, and city light businesses to the Danish energy company SEAS-NVE.
 
The construction of offshore wind, onshore wind, and solar PV assets across the globe is progressing satisfactorily, despite the challenges caused by the COVID-19 pandemic. In Q3, we commissioned our onshore wind farm Willow Creek in Nebraska, US, and installed the last wind turbine at our offshore wind farm Borssele 1 & 2 in the Netherlands.
 
We took final investment decision on the onshore wind farm Western Trail in Texas in September. The greenfield project has a capacity of 367MW, is eligible for 100% PTC, and is expected to be commissioned during Q3 2021.
 
In addition, we acquired Haystack, a 298MW onshore wind development project in Nebraska, in October. The late-stage project further expands our portfolio in the SPP region. Haystack is expected to be commissioned during Q4 2021 and is also eligible for 100% PTC.    
 
In October, we have submitted bids in the up to 2.5GW auction in New York. We expect to receive the outcome of the auction before year end.
 
Together with Yara, the world's leading fertilizer company, we have launched a joint renewable hydrogen project in the Netherlands. The project will include a 100MW electrolyser plant generating renewable hydrogen based on Ørsted's offshore wind farms. The renewable hydrogen will replace fossil-based hydrogen in the production of green ammonia at Yara's ammonia manufacturing facility with the potential to abate more than 100,000 tonnes of carbon emissions per year.
 
In mid-October, the Renescience plant in Northwich, UK, was successfully commissioned after passing the final performance test. With the commissioning of Renescience, we reached an important milestone, and we will now continue to monitor the plant's performance, while exploring the broader commercial potential of the waste treatment technology.



In September, the Board of Directors appointed Mads Nipper my successor as CEO of Ørsted. Mads is a highly accomplished leader, and with his visionary thinking and strategic skills, Ørsted's continued global expansion is in very good hands. It has been an exceptional privilege to be part of the Ørsted team over the past eight years. This will be my last report as CEO, and therefore I will conclude by expressing my deepest gratitude to Ørsted's shareholders, the Board of Directors, the management team and not least Ørsted's employees for their relentless pursuit of our vision and their confidence and support during my tenure."
 
 
Financial key figures for Q3 2020 and 9M 2020:



DKK million


Q3 2020 


Q3 2019


%


9M 2020


9M 2019


%




EBITDA


3,360


4,116


(18%)


13,121


12,871


2%




Profit (loss) for the period from cont. operations


12,016


1,443


n.a.


14,553


5,175


181% 




Profit (loss) for the period from discont. operations


18


34


(47%) 


(26) 


(27)


(4%)




Profit (loss) for the period


12,034


1,477


n.a.


14,527


5,148


182%




Cash flows from operating activities


1,941


871


123%


9,710


8,263


18%




Gross investments


(9,263)


(7,222)


28%


(18,328)


(14,489)


26%




Divestments


20,506


260


n.a.


20,558


2,927


n.a.




Free cash flow


13,184


(6,091)


n.a.


11,940


(3,299)


n.a.




Net interest-bearing debt


8,216


12,082


(32%)


8,216


12,082


(32%)




FFO/adjusted net debt 


36%


47%


(11%p)


36%


47%


(11%p)




ROCE 


9%


29%


(20%p)


9%


29%


(20%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, 28 October 2020 at 14:00 CEST.



Denmark: +45 82 33 31 94  
International: +44 333 300 9274
USA: +1 833 526 8398
 
The earnings call can be followed live at:
https://edge.media-server.com/mmc/p/79p2v9ea
 
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 
 





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.

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
 
 
NRAPPGWUUUPUUMR