REG-Ørsted A/S Annual report for 2023 – strong underlying results and strategic progress in a challenging year

Oersted A/SAnnouncement

07/02/2024 07:15

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   Ørsted A/S (Orsted)
   Annual report for 2023 – strong underlying results and strategic progress
   in a challenging year

   07-Feb-2024 / 08:06 CET/CEST

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   7.2.2024 08:06:17 CET | Ørsted A/S | Annual Financial Report

   Today, Ørsted’s Board of Directors approved the annual report for 2023.

   Operating profit (EBITDA) for the year amounted to DKK 18.7 billion.
   Excluding new partnerships and cancellation fees, EBITDA amounted to DKK
   24.0 billion, above our guidance of DKK 20-23 billion.

   EBITDA from offshore sites more than doubled to DKK 20.2 billion in 2023
   due to ramp-up of generation at Hornsea 2 and Greater Changhua 1 and 2a,
   and as the negative effects from hedges in 2022 were not repeated in 2023.

   EBITDA in 2023 was impacted by a provision of DKK 9.6 billion for
   cancellation fees related to our decision to cease the development of
   Ocean Wind 1. In addition, we recognised impairment losses of DKK 26.8
   billion in 2023. The majority of these (DKK 19.9 billion) related to Ocean
   Wind 1.

   Net profit amounted to DKK -20.2 billion, and return on capital employed
   (ROCE) came in at -14 %. Net profit and ROCE excluding impairment losses
   and cancellation fees amounted to DKK 14.9 billion and 12.9 %,
   respectively.

   As part of our Capital Markets Update announced earlier today, the Board
   of Directors have decided to pause dividend payments for the financial
   years 2023-2025. Hereafter, the target is to reinstate dividend payments.

   In 2024, EBITDA excluding new partnership agreements and cancellation fees
   is expected to be DKK 23-26 billion, and gross investments are expected to
   be DKK 48-52 billion.

   Mads Nipper, Group President and CEO of Ørsted, says:
   “Despite a year with strong underlying business progress, 2023 marked a
   year with substantial challenges for Ørsted. Our financial results are
   adversely affected by the impairments we took on our US offshore projects
   in the third quarter of 2023 and the provision for cancellation fees
   related to ceasing the development of the offshore project Ocean Wind 1.

   “We’ve thoroughly reviewed the events leading up to our decision to cease
   the development of our Ocean Wind 1 project and are implementing the
   learnings into our operating model to reduce risks in the development and
   execution of projects. Despite the short-term challenges, our traction and
   underlying momentum was strong in 2023. We delivered strong operational
   results in 2023 with an adjusted EBITDA slightly above our guidance and
   with several important milestones achieved. Earnings from our offshore
   sites more than doubled compared to last year, and in 2023, we advanced
   three large offshore wind projects with a total capacity of 4.5 GW to
   final investment decision, one in the UK, the US, and Taiwan,
   respectively.

   “Today, we’ve presented an updated business plan, including a strategic
   ambition of 35-38 GW installed renewable capacity by 2030, based on a
   comprehensive portfolio review. We’ve revisited our portfolio to
   prioritise growth options with the highest potential for value creation
   and at the same time reduce risks in the development and execution of our
   projects. We remain optimistic about the future of the renewable energy
   industry, and we’re confident we can be a key contributor in accelerating
   the renewable build-out in the years to come.”

   Financial key figures for 2023:

   DKK million             Q4 2023  Q4 2022 %       2023     2022     %
   EBITDA                  (686)    6,696   n.a.    18,717   32,057   (42 %)
   - New partnerships      317      77      312 %   4,324    10,993   (61 %)
   - Cancellation fees     (9,621)  0       n.a.    (9,621)  0        n.a.
   - EBITDA excl. new
   partnerships and        8,618    6,619   30 %    24,014   21,064   14 %
   cancellation fees
   Profit (loss) for the   (284)    (329)   (14 %)  (20,182) 14,996   n.a.
   period
   Cash flow from          6,170    20,915  (70 %)  28,532   11,924   139 %
   operating activities
   Gross investments       (13,039) (9,826) 33 %    (38,509) (37,447) 3 %
   Divestments             1,861    983     89 %    1,542    25,636   (94 %)
   Free cash flow          (5,008)  12,072  n.a.    (8,435)  113      n.a.
   Net interest-bearing    47,379   30,571  55 %    47,379   30,571   55 %
   debt
   FFO/adjusted net debt   28.6 %   42.7 %  (14 %p) 28.6 %   42.7 %   (14 %p)
   ROCE                    (14.2 %) 16.8 %  (31 %p) (14.2 %) 16.8 %   (31 %p)

   Presentation of full-year results and Capital Markets Update 
   Mads Nipper, Group President and CEO of Ørsted, and Rasmus Errboe, interim
   CFO of Ørsted, will present the full-year results and a Capital Markets
   Update on Wednesday, 7 February at 13:00 CET.

   To join the live streaming, please click here:  1 Ørsted full-year results
   2023 and Capital Markets Update (getvisualtv.net)

   Presentation slides will be available prior to the Capital Markets Update
   at  2 Investors | Ørsted (orsted.com)

   Press briefing
   Ørsted will host a phone press briefing for journalists on Wednesday, 7
   February 2024 at 09:00 CET to elaborate on and answer questions about the
   Capital Markets Update and the annual results for 2023.

   Dial-in numbers for the press briefing:

   Denmark: +45 89 87 50 45
   UK: +44 20 3936 2999
   Access code: 421285

   For participation in the press briefing, please register here:
    3 NetRoadshow

   For further information, please contact:

   Global 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. 8,900 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group's
   revenue was DKK 79.3 billion (EUR 10.6 billion). Visit  5 orsted.com or
   follow us on  6 Facebook,  7 LinkedIn, Instagram, and  8 X.

       Attachments

     •  9 Company announcement_Annual report for 2023 – strong underlying
       results and strategic progress in a challenging year.pdf
     •  10 Ørsted annual report 2023.pdf
     •  11 Orsted-2023-12-31-en.zip

   News Source: Ritzau

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DK0060094928
   Category Code: ACS
   TIDM:          Orsted
   Sequence No.:  302085
   EQS News ID:   1831913


    
   End of Announcement EQS News Service

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