REG-Ørsted A/S Annual report for 2022: Ørsted achieved strong operational performance and significant strategic progress

Oersted A/SAnnouncement

01/02/2023 07:00

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   Ørsted A/S (Orsted)
   Annual report for 2022: Ørsted achieved strong operational performance and
   significant strategic progress

   01-Feb-2023 / 07:59 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   1.2.2023 07:59:37 CET | Ørsted A/S | Annual Financial Report

   Today, Ørsted’s Board of Directors approved the annual report for 2022.

   Our operating profit (EBITDA) for the year amounted to DKK 32.1 billion,
   our highest EBITDA ever, of which the gain from the 50 % farm-downs of
   Hornsea 2 and Borkum Riffgrund 3 amounted to DKK 11.0 billion in total.

   EBITDA excluding new partnership agreements amounted to DKK 21.1 billion,
   an increase of DKK 5.3 billion compared to 2021. We benefitted from our
   diverse portfolio and achieved significantly higher earnings from our
   onshore wind and solar PV business, our combined heat and power plants,
   and our gas activities than expected at the beginning of the year, while
   earnings in Offshore decreased. The unexpected decrease in Offshore was
   primarily due to adverse impacts from hedges and delays at our Hornsea 2
   and Greater Changhua 1 & 2a construction projects.

   Net profit amounted to DKK 15.0 billion, and return on capital employed
   (ROCE) came in at 17 %.

   The Board of Directors recommends a dividend of DKK 13.5 per share (DKK
   5.7 billion in total), up 8.0 % and in line with our dividend policy.

   In 2023, EBITDA excluding new partnership agreements is expected to be DKK
   20-23 billion, and gross investments are expected to be DKK 50-54 billion.

   Mads Nipper, Group President and CEO of Ørsted, says:
   “In a year with unusual market conditions, not least the very volatile
   energy prices and a substantial increase in inflation, we’re happy to
   achieve a record-high operating profit for 2022.

   We achieved strong operational performance with our assets remaining fully
   operational and having robust availability rates. Our CHP plants supported
   the much-needed security of supply in Denmark.

   Furthermore, we achieved significant strategic results across our
   business, and we remain confident in our long-term financial estimates and
   growth ambitions. The world is facing a climate crisis, and it’s
   indisputable that a transition to a sustainable energy system is needed.
   We’re ready to be part of this much-needed renewable energy build-out.”

   Ørsted achieved significant strategic results during 2022, including:

   Offshore

     • In the UK, we were awarded a contract for difference for building
       Hornsea 3, the world’s single biggest offshore wind farm, and we
       commissioned Hornsea 2, the world’s largest operating wind farm.
     • In the US, we continued the development of our portfolio of offshore
       wind projects off the East Coast, including taking final investment
       decision on South Fork.
     • Despite challenges in Taiwan, we continued the progress in all areas
       of the construction of Greater Changhua 1 & 2a and expect to
       commission the wind farm in H2 2023.
     • We took significant steps into floating wind in Scotland and Spain.

   Onshore

     • We took further steps in Europe by completing the acquisition of
       Ostwind, which has a development project pipeline of more than 1.5 GW
       in Germany and France.
     • We entered new partnerships in Spain to pursue early-stage solar and
       onshore wind projects.
     • In the US, we added 1.3 GW to our portfolio following our final
       investment decision of three large onshore and solar PV farms
       (Sunflower, Mockingbird, and Eleven Mile), which will increase our
       installed capacity with more than 30 %.

   P2X

     • We took FID and acquired the remaining 55 % of FlagshipONE, the
       largest e-methanol project under construction in Europe.
     • Our ‘Green Fuels for Denmark’ project and our Haddock P2X project in
       the Netherlands received IPCEI funding.
     • We signed a landmark letter of intent with A.P. Moller – Maersk to
       deliver 300,000 tonnes of e-methanol on the US Gulf Coast.

   Financial key figures for 2022:

   DKK million                Q4 2022 Q4 2021  %      2022     2021     %
   EBITDA                     6,696   8,253    (19 %) 32,057   24,296   32 %
   - New partnerships         77      3,211    (98 %) 10,993   8,507    29 %
   - EBITDA excl. new         6,619   5,042    31 %   21,064   15,789   33 %
   partnerships
   Profit (loss) for the      (329)   3,258    n.a.   14,996   10,887   38 %
   period
   Cash flow from operating   20,915  668      n.a.   11,924   12,148   (2 %)
   activities
   Gross investments          (9,826) (11,752) (16 %) (37,447) (39,307) (5 %)
   Divestments                983     10,952   (91 %) 25,636   21,519   19 %
   Free cash flow             12,072  (132)    n.a.   113      (5,640)  n.a.
   Net interest-bearing debt  30,571  24,280   26 %   30,571   24,280   26 %
   FFO/adjusted net debt      43 %    26 %     16 %p  43 %     26 %     16 %p
   ROCE                       17 %    15 %     2 %p   17 %     15 %     2 %p

   Earnings call
   In connection with the presentation of the annual report, an earnings call
   for investors and analysts will be held on Wednesday, 1 February 2023 at
   14:00 CET.

   Denmark: +45 78 76 84 90
   The UK: +44 203 769 6819
   The US: +1 646 787 0157

   PIN: 994005

   The earnings call can be followed live at:
    1 https://orsted-events.eventcdn.net/events/annual-report-2022

   Presentation slides will be available prior to the earnings call at:
    2 Investors | Ørsted (orsted.com)

   The annual report and reports about remuneration, sustainability and ESG
   performance are available for download at:
    3 https://orsted.com/en/investors/ir-material/annual-reporting-2022 

   For further information, please contact:

   Media Relations
   Martin Barlebo
   +45 99 55 95 52

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    4 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. 7,700 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the group's
   revenue was DKK 77.7 billion (EUR 10.4 billion). Visit  5 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  6 Company announcement_Ørsted achieved strong operational performance
       and significant strategic progress.pdf
     •  7 Ørsted annual report 2022.pdf
     •  8 Orsted-2022-12-31-en.zip
     •  9 Ørsted - Q4 2022 - Investor presentation.pdf

   News Source: Ritzau

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   ISIN:          DK0060094928
   Category Code: ACS
   TIDM:          Orsted
   Sequence No.:  219786
   EQS News ID:   1548277


    
   End of Announcement EQS News Service

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