REG-Ørsted A/S Ørsted continues to reject demand for payment in roubles – risk of Gazprom Export’s gas supplies to Ørsted being halted

Oersted A/SAnnouncement

30/05/2022 11:45

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   Ørsted A/S (Orsted)
   Ørsted continues to reject demand for payment in roubles – risk of Gazprom
   Export’s gas supplies to Ørsted being halted

   30-May-2022 / 12:33 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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   30.5.2022 12:33:09 CEST | Ørsted A/S | Investor News

   Gazprom Export continues to demand that Ørsted pays for gas supplies in
   roubles. We have no legal obligation under the contract to do so, and we
   have repeatedly informed Gazprom Export that we will not do so. The
   payment deadline is 31 May and Ørsted will continue to pay in Euros.

   Therefore, there is a risk that Gazprom Export will stop supplying gas to
   Ørsted. In Ørsted’s view, this will be a breach of contract.

   Since there is no gas pipeline going directly from Russia to Denmark,
   Russia will not be able to directly cut off the gas supplies to Denmark,
   and it will thus still be possible for Denmark to get gas. However, this
   means that the gas for Denmark must, to a larger extent, be purchased on
   the European gas market. We expect this to be possible.

   In Ørsted, we have been preparing for this scenario to minimise the risk
   of Ørsted's gas customers, which are primarily major companies in Denmark
   and Sweden, experiencing shortfalls in gas supplies. Ørsted has storage
   capacity in e.g. Denmark and Germany, and we are currently filling up
   these storage facilities to secure gas supplies to our customers and
   contribute to the market's security of supply.

   We are in ongoing dialogue with the authorities about potential scenarios,
   and we trust that the authorities, who have the overall overview of the
   supply situation in Denmark, are prepared for the situation. We will
   remain in close dialogue with the authorities regarding the situation.

   A potential halt of gas supplies by Gazprom Export does not change
   Ørsted’s financial outlook for the 2022 financial year or the expected
   investment level announced for 2022 and does not change our strategic
   ambition and long-term financial guidance. In the first quarter, we
   reduced the overall hedge level for the Gazprom Export contract to balance
   the risk against a scenario where the supply of Russian gas is disrupted.
   We have previously announced that Ørsted will donate all 2022 net profits
   (if any) after hedges and tax from the Gazprom Export contract to
   humanitarian aid in Ukraine.

   Since Russia attacked Ukraine, Ørsted has taken several steps to stop its
   cooperation with Russian companies. We immediately ceased all sourcing of
   coal and biomass from Russia, we have made sure that none of Ørsted’s
   direct suppliers for the build-out of renewable energy are Russian, and we
   have decided not to enter into new contracts with Gazprom. We fully
   support the ambition of the Danish government and the EU to become
   independent of Russian gas and to fast-track the green transformation of
   EU’s energy sector, and we are ready to help accelerate the green
   build-out.

   As the matter is ongoing, we cannot elaborate further at this time.

   Media Relations
   Carsten Birkeland Kjær
   + 45 99 55 77 65
    1 cabkj@orsted.com

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    2 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. 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  3 orsted.com or follow us on
   Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  4 Ørsted continues to reject demand for payment in roubles – risk of
       Gazprom Export’s gas supplies to Ørsted being halted.pdf

   News Source: Ritzau

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  164997
   EQS News ID:   1364151


    
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References

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