REG-Ørsted A/S Interim report for the first nine months of 2023 – Ceased the development of Ocean Wind 1 and Ocean Wind 2, took final investment decision on Revolution Wind, and impairment losses of DKK 28.4 billion

Oersted A/SAnnouncement

31/10/2023 23:45

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   Ørsted A/S (Orsted)
   Interim report for the first nine months of 2023 – Ceased the development
   of Ocean Wind 1 and Ocean Wind 2, took final investment decision on
   Revolution Wind, and impairment losses of DKK 28.4 billion

   01-Nov-2023 / 00:40 CET/CEST

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   1.11.2023 00:40:00 CET | Ørsted A/S | Quarterly report

   Today, Ørsted’s Board of Directors approved the interim report for the
   first nine months of 2023.

   Operating profit (EBITDA) for the first nine months amounted to DKK 19.4
   billion. Excluding new partnerships, EBITDA amounted to DKK 15.4 billion,
   DKK 1.0 billion higher than in the same period last year.

   Earnings from offshore sites amounted to DKK 13.0 billion, which was DKK
   6.8 billion higher than in the same period last year, and were positively
   affected by ramp-up at Hornsea 2 and Greater Changhua 1 and 2a and the
   negative impact from hedges in 2022 not being repeated.

   Due to adverse impacts relating to supply chain delays, increased interest
   rates, and the lack of an OREC adjustment on Sunrise Wind, we have
   recognised impairment losses of DKK 28.4 billion in 9M 2023. The majority
   of these (DKK 19.9 billion) relates to our US offshore project Ocean Wind
   1.

   Net profit amounted to DKK -19.9 billion, and return on capital employed
   (ROCE) came in at -14 %. Net profit and ROCE excluding impairment losses
   amounted to DKK 8.5 billion and 13 %, respectively.

   Our previously guided EBITDA for 2023, excluding new partnership
   agreements, of DKK 20-23 billion remains unchanged, when excluding a
   provision of approximately DKK 8-11 billion related to potential
   cancellation fees following our decision to cease the development of Ocean
   Wind 1. Due to a later timing across our project portfolio and the
   termination of investments on Ocean Wind 1, our gross investment for 2023
   is now expected to amount to DKK 40-44 billion, a reduction of DKK 4
   billion.

   Mads Nipper, Group President and CEO of Ørsted, says in a comment to the
   interim financial report for the first nine months of 2023:
   “We’re pleased with the performance of our operating assets in the first
   nine months of 2023, which drives a satisfactory development in our
   earnings. Our operating profit (EBITDA) excluding new partnerships
   increased by DKK 1 billion compared to the same period last year, and
   earnings from our offshore sites have more than doubled compared to last
   year.

   “The current market situation with supply chain challenges, project
   delays, and rising interest rates has challenged our offshore projects in
   the US, and in particular our offshore project Ocean Wind 1, which has led
   to significant impairments in Q3 2023.

   “Therefore, as part of our ongoing review of our US offshore wind
   portfolio, we’ve decided to cease the development of Ocean Wind 1 and
   Ocean Wind 2. At the same time, we’ve taken final investment decision on
   the 704 MW Revolution Wind project, progressing it to the construction
   phase with an attractive forward-looking value creation.

   “Based on the challenged US portfolio and the current market conditions,
   we’ve initiated numerous actions to ensure our capital structure and
   rating and to improve our competitiveness and value creation.”

   Financial key figures for 9M 2023:

   DKK million             Q3 2023  Q3 2022  %       9M 2023  9M 2022  %
   EBITDA                  9,173    12,317   (26 %)  19,403   25,361   (23 %)
   - New partnerships      4,007    9,346    (57 %)  4,007    10,916   (63 %)
   - EBITDA excl. new      5,166    2,971    74 %    15,396   14,445   7 %
   partnerships
   Profit (loss) for the   (22,562) 9,355    n.a.    (19,898) 15,325   n.a.
   period
   Cash flow from          9,796    (11,309) n.a.    22,362   (8,991)  n.a.
   operating activities
   Gross investments       (9,204)  (14,417) (36 %)  (25,470) (27,621) (8 %)
   Divestments             1,735    22,459   (92 %)  (319)    24,653   n.a.
   Free cash flow          2,327    (3,267)  n.a.    (3,427)  (11,959) (71 %)
   Net interest-bearing    42,892   45,701   (6 %)   42,892   45,701   (6 %)
   debt
   FFO/adjusted net debt   20.9 %   35.3 %   (14 %p) 20.9 %   35.3 %   (14
                                                                       %p)
   ROCE                    (13.7 %) 24.4 %   (38 %p) (13.7 %) 24.4 %   (38
                                                                       %p)

   Earnings call
   In connection with the presentation of the interim report for the first
   nine months of the year, an earnings call for investors and analysts will
   be held on Wednesday, 1 November 2023 at 14:00 CET.

   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 Ørsted | Interim report for the first nine months of 2023
   (eventcdn.net)  

   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 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. 8,700 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 Company announcement 9M 2023.pdf
     •  10 Interim financial report 9M 2023.pdf
     •  11 Ørsted - Q3 2023 - Investor presentation.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: QRT
   TIDM:          Orsted
   Sequence No.:  281807
   EQS News ID:   1762055


    
   End of Announcement EQS News Service

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