REG-Ørsted A/S Ørsted expects EBITDA excluding new partnership agreements of DKK 21.1 billion for 2022. EBITDA guidance for 2023 of DKK 20-23 billion excluding new partnership agreements

Oersted A/SAnnouncement

19/01/2023 21:00

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   Ørsted A/S (Orsted)
   Ørsted expects EBITDA excluding new partnership agreements of DKK 21.1
   billion for 2022. EBITDA guidance for 2023 of DKK 20-23 billion excluding
   new partnership agreements

   19-Jan-2023 / 21:50 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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   19.1.2023 21:50:18 CET | Ørsted A/S | Inside information

   Ørsted presents operating profit (EBITDA) for 2022 based on preliminary
   and unaudited reporting.

   It has been a year with unusual market conditions, not least very volatile
   energy prices and a substantial increase in inflation. Despite this, we
   achieved 2022 results (EBITDA) within our latest guidance from 3 November
   2022 and above our initial expectations for the year.

   EBITDA including new partnership agreements is expected to total DKK 32.1
   billion in 2022, our highest EBITDA to date, of which the gain from the 50
   % farm-downs of Hornsea 2 and Borkum Riffgrund 3 amounted to DKK 11.0
   billion in total.

   EBITDA excluding new partnership agreements is expected to be DKK 21.1
   billion, an increase of DKK 5.3 billion compared to 2021. We benefitted
   from our diverse portfolio and achieved significantly higher earnings from
   our onshore wind and solar PV business, our combined heat and power
   plants, and our gas activities than expected at the beginning of the year,
   while earnings in Offshore decreased. The unexpected decrease in Offshore
   was primarily due to adverse impacts from hedges, and delays at our
   Hornsea 2 and Greater Changhua 1 & 2a construction projects.

   Preliminary and unaudited EBITDA  

   DKK billion                          2022 2021 ∆
   Group EBITDA                         32.1 24.3 7.8
   Group EBITDA excl. new partnerships  21.1 15.8 5.3
      Offshore                          19.6 18.0 1.6
        - New partnerships              11.0 8.5  2.5
        - EBITDA excl. new partnerships 8.6  9.5  (0.9)
      Onshore                           3.6  1.3  2.3
      Bioenergy & Other                 8.6  4.7  3.9
      Other                             0.2  0.2  0

   Impairment of Sunrise Wind
   As a result of project-specific CAPEX increases, an unprecedented cost
   inflation, and rapidly rising interest rates in 2022, we will recognise an
   impairment of DKK 2.5 billion on our 50 % owned US-based offshore wind
   development project Sunrise Wind in 2022.

   EBITDA outlook for 2023
   EBITDA excluding new partnership agreements is expected to be DKK 20-23
   billion in 2023. Our EBITDA guidance assumes significantly higher earnings
   in Offshore, the same level in Onshore, and significantly lower earnings
   in Bioenergy & Other compared to 2022.

   Mads Nipper, Group President and CEO of Ørsted, says:
   “In a year with unusual market conditions, not least the very volatile
   energy prices and a substantial increase in inflation, we’re happy to
   achieve a record-high EBITDA for 2022 within our latest guidance and above
   our initial expectations for the year. The composition and development of
   our earnings mix was significantly different than expected and once again
   showed the benefits from having a diverse portfolio.

   We expect that earnings from our operational renewable energy assets will
   increase significantly in 2023 and contribute to reaching a Group EBITDA
   excluding new partnerships of DKK 20-23 billion, and we remain confident
   in our long-term financial estimates and growth ambitions.”

   Daniel Lerup, CFO of Ørsted, says:
   “During the year, we have seen adverse impacts from overhedging,
   ineffective hedges, and delays at Hornsea 2 and Greater Changhua 1 & 2a,
   which is not satisfactory. As a response to the unintended impacts from
   hedges, we have established and are in the process of implementing a new
   risk management framework to reduce the volatility from financial
   instruments and bring back the inherent predictability of earnings that
   our contracted and regulated activities possess.”

   Presentation slides are available at
    1 https://orsted.com/q4-conference-call-presentation.

   Investor and analyst call
   In connection with the publication of the preliminary results for 2022 and
   guidance for 2023, a call for investors and analysts will be held on
   Friday, 20 January 2023 at 08:00 CET.

   Dial in numbers for the call:

   Denmark: +45 78 76 84 90
   The UK: +44 203 769 6819
   The US: +1 646 787 0157

   PIN: 994005

   The investor and analyst call can be followed live at
    2 https://orsted-events.eventcdn.net/events/conference-call-january-2023

   Press briefing
   In order to elaborate on today’s announcement and answer questions about
   the preliminary results for 2022 and guidance for 2023, a press briefing
   will be held for journalists on Friday, 20 January 2023 at 09:00 CET.

   Dial-in numbers for the press briefing:

   Denmark: +45 78 73 78 92
   UK: +44 33 0551 0203

   Passcode: Ørsted

   Ørsted will publish its annual report for 2022 on Wednesday, 1 February
   2023.        

   For further information, please contact:

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

   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. 7,700 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  5 orsted.com or
   follow us on Facebook, LinkedIn, Instagram, and Twitter.

       Attachments

     •  6 Ørsted expects EBITDA excluding new partnership agreements of DKK
       21.1 billion for 2022.pdf

   News Source: Ritzau

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   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  217086
   EQS News ID:   1539617


    
   End of Announcement EQS News Service

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