REG-Ørsted A/S Interim report for the first three months of 2022: Strong operational and financial results and continued strategic progress with full year EBITDA guidance reiterated

Oersted A/SAnnouncement

29/04/2022 07:15

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Ørsted A/S (Orsted)
Interim report for the first three months of 2022: Strong operational and
financial results and continued strategic progress with full year EBITDA
guidance reiterated

29-Apr-2022 / 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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29.4.2022 07:59:23 CEST | Ørsted A/S | Interim report (Q1 and Q3)

Today, Ørsted's Board of Directors approved the interim report for the first
three months of 2022.

Our operating profit (EBITDA) totalled DKK 9.4 billion, an increase of DKK 4.6
billion compared to Q1 2021. The gain from the 50 % farm-down of Borkum
Riffgrund 3 amounted to DKK 1.6 billion. EBITDA excluding new partnerships
amounted to DKK 7.8 billion, DKK 3.0 billion higher than in the same period last
year.

Net profit amounted to DKK 5.7 billion and return on capital employed (ROCE)
came in at 19 %.

We reiterate our full-year EBITDA guidance of DKK 19-21 billion. Our EBITDA
guidance does not include earnings from new partnerships during the year, which
means that the gain from the Borkum Riffgrund 3 farm-down in Q1 2021 and the
farm-down of Hornsea 2, expectedly during H2 2022, is excluded from our
full-year guidance.

We also reiterate our full-year gross investment guidance of DKK 38-42 billion.

Mads Nipper, Group President and CEO of Ørsted, says in a comment to the interim
financial report for the first three months of 2022:
'I'm very pleased with our start to the year. We managed to achieve strong
operational and financial results and continued strategic progress in the first
quarter of 2022. We reported an EBITDA of DKK 9.4 billion, almost doubled
compared to the same period last year.

The continued very high power prices had a significant opposite impact on our
financial performance in our Offshore and Bioenergy businesses. In Offshore, we
had a negative impact due to later than expected commissioning of turbines at
Hornsea 2, which led us to being overhedged. In contrast, we fully benefited
from the high power prices on our power generation at our CHP plants. At Group
level, these effects to a large degree offset each other during the quarter.

We have successfully achieved first power at Greater Changhua 1 & 2a, and the
wind farm is on track to be commissioned during H2 2022. At Hornsea 2, the
largest offshore wind farm in the world, we have successfully installed all
foundations, array cables, and wind turbines. However, the commissioning of the
individual wind turbines has been progressing slower, and the ramp-up profile
has been delayed compared to our internal expectations at year-end. We are now
electrifying and waiting for all wind turbines to pass the final tests before
commissioning the wind farm, expectedly during summer.

Our US onshore business also delivered very strong results in the first quarter.
However, we see delays on the construction of the solar PV farm Old 300 and the
solar part of the Helena Energy Center project due to continued challenges in
the solar panel supply chain.

In March, we signed a landmark green fuels letter of intent (LoI) with Maersk.
In the agreement, we will develop an e-methanol facility on the US Gulf Coast
with the aim to fuel Maersk's newly ordered fleet of 12 methanol-powered
vessels. With a capacity of 300,000 tonnes/year, it is expected to be the
largest e-methanol facility in the world when commissioned.

In Q1 2022, we signed an agreement to farm-down 50 % of Hornsea 2 and we
completed the 50 % farm-down of Borkum Riffgrund 3. These key partnerships are a
strong testament to the attractiveness of our offshore assets, and we look
forward to working together with our partners on these projects.

We have signed an agreement with Repsol to jointly identify and develop floating
offshore wind projects in Spain. This marks our first entry into the Spanish
market, following the Spanish government's announcement that they aim to install
up to 3 GW of floating offshore wind by 2030. Repsol and Ørsted have an ambition
of jointly becoming a leading developer in Spanish offshore wind by combining
their complementary strengths.

We remain deeply concerned about the Russian aggression against Ukraine. We are
taking every step possible to stop our cooperation with Russian companies,
including ceasing all sourcing of biomass and coal for our power stations.
Ørsted rejects the claim from Gazprom Export to pay in roubles for the gas
delivered. Gas is not a core business for Ørsted, and we are not entering into
new long-term contracts or extending our current contracts. If we make a net
profit from the Gazprom Export contract in 2022 it will be donated to
humanitarian aid in Ukraine.

We welcome the EU's focus to stop its dependence on Russian oil and gas and
speed up the green transformation of EU's energy sector, and we are ready to
help drive the accelerated green build-out.'

Financial key figures for Q1 2022:

DKK million                         Q1 2022 Q1 2021            %
EBITDA                              9,429   4,863              94 %
- New partnerships                  1,610                    - n.a.
- EBITDA excl. New partnerships     7,819   4,863              61 %
Profit (loss) for the period        5,701   1,598              257 %
Cash flow from operating activities (37)    8,087              n.a.
Gross investments                   (6,832) (6,665)            3 %
Divestments                         1,927   (31)               n.a.
Free cash flow                      (4,942) 1,391              n.a.
Net interest-bearing debt           30,026  13,190             128 %
FFO/adjusted net debt               25 %    59 %               (34 %p)
ROCE                                19 %    7 %                12 %p

For further information, please contact:

Media Relations
Martin Barlebo
+45 99 55 95 52

Investor Relations
Rasmus Keglberg Hærvig
+45 99 55 90 95

Earnings call
In connection with the presentation of the annual report, an earnings call for
investors and analysts will be held on Friday, 29 April 2022 at 14:00 CEST.

Denmark: +45 78 15 01 10
The UK: +44 333 300 9261
The US: +1 646 722 4956

The earnings call can be followed live at:
 1 https://edge.media-server.com/mmc/p/gk6ha8rm

Presentation slides will be available prior to the earnings call at:
 2 www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0

The interim report is available for download at:
 3 www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0

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. Moreover, Ørsted provides energy products to its customers.
Ørsted is the only energy company in the world with a science-based net-zero
emissions target as validated by the Science Based Targets initiative (SBTi).
Ørsted ranks as the world's most sustainable energy company in Corporate
Knights' 2022 index of the Global 100 most sustainable corporations in the world
and is recognised on the CDP Climate Change A List as a global leader on climate
action. Headquartered in Denmark, Ørsted employs 7,016 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  4 orsted.com or follow us on Facebook,
LinkedIn, Instagram, and Twitter.

    Attachments

  •  5 Company announcement Q1 2022.pdf
  •  6 Interim financial report Q1 2022.pdf
  •  7 Ørsted - Q1 2022 - Investor presentation.pdf

News Source: Ritzau

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   ISIN:          DK0060094928
   Category Code: QRF
   TIDM:          Orsted
   Sequence No.:  158431
   EQS News ID:   1339175


    
   End of Announcement EQS News Service

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