REG-Ørsted A/S Interim report for the first half year of 2023 – continued strong financial performance with high earnings in our offshore business and several new partnerships

Oersted A/SAnnouncement

10/08/2023 07:00

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   Ørsted A/S (Orsted)
   Interim report for the first half year of 2023 – continued strong
   financial performance with high earnings in our offshore business and
   several new partnerships

   10-Aug-2023 / 07:59 CET/CEST

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   10.8.2023 07:59:03 CEST | Ørsted A/S | Half Year financial report

   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       3,320   3,615   (8 %)   10,230   11,434   (11 %)
   partnerships
   Profit (loss) for the    (538)   269     n.a.    2,664    5,970    (55 %)
   period
   Cash flow from operating 2,447   2,355   4 %     12,566   2,318    442 %
   activities
   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     43,924  41,449  6 %     43,924   41,449   6 %
   debt
   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:
    1 https://orsted-events.eventcdn.net/events/interim-report-Q2-2023  

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

   The interim report is available for download at:
    3 https://orsted.com/financial-reports

   For further information, please contact:

   Media Relations
   Martin Balebo
   +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. 8,700 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  5 orsted.com or
   follow us on  6 Facebook,  7 LinkedIn, Instagram, and  8 Twitter.

       Attachments

     •  9 Interim financial report H1 2023.pdf
     •  10 Ørsted - Q2 2023 - Investor presentation.pdf
     •  11 Company announcement_Interim report for the first half year of
       2023.pdf

   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: IR
   TIDM:          Orsted
   Sequence No.:  263569
   EQS News ID:   1700321


    
   End of Announcement EQS News Service

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