TIDM44ZX
Orsted A/S
08 August 2019
Interim report for the first half-year of 2019
Strong first half with two major US offshore wind projects
awarded
Today, Ørsted's Board of Directors approved the interim report
for the first half-year (H1) of 2019. We achieved an operating
profit (EBITDA) of DKK 8.8 billion, up 2% compared to H1 2018 and
we are well on track to deliver on our full-year guidance.
Earnings from our offshore wind farms in operation increased by
18%, driven by ramp-up of generation from new wind farms in
operation. In addition, our onshore wind business contributed
positively to the year-on-year development as did higher earnings
from trading related to hedging of our energy exposures as well as
strong margins in our gas portfolio. This was partly offset by
higher project development costs, a positive outcome of a gas
sourcing arbitration case in 2018, and a temporarily negative
effect from our gas at storage due to the substantial drop in gas
prices during H1 2019.
The green share of generation increased from 71% to 82%.
Return on capital employed (ROCE) increased to 29%, up 6
percentage points compared to H1 2018.
Our guidance for 2019 is unchanged relative to the guidance in
the annual report for 2018. EBITDA, excluding new partnerships, is
expected to amount to DKK 15.5-16.5 billion, and gross investments
are expected to amount to DKK 21-23 billion.
CEO and President Henrik Poulsen says:
"2019 has been a very good year for Ørsted so far. Operating
profit for the first half of the year amounted to DKK 8.8 billion,
which was in line with our expectations and keeps us well on track
to deliver on our full-year guidance of DKK 15.5-16.5 billion.
We were selected as preferred bidder in the auctions in both New
Jersey with our Ocean Wind project (1.1GW) and New York with the
Sunrise Wind project (880MW) which we own in a JV with Eversource.
Subject to final investment decisions, the wind farms are expected
to be completed by 2024. We are very pleased with these awards and
are well on track to reach our ambition of 15GW offshore wind
capacity by 2025 as we continue to pioneer the global offshore wind
industry.
In June, we officially inaugurated the Borkum Riffgrund 2
offshore wind farm in Germany and in July, we commissioned the
Lockett onshore wind farm in the US well ahead of schedule.
In June, we acquired the 103MW construction-ready onshore wind
project Willow Creek in South Dakota in the US. The project is
expected to be commissioned by Q4 2020 and will expand our
operations in the Southwest Power Pool market, covering the central
US.
Over the past decade, we have undertaken one of the most
ambitious green transformations in the global energy industry,
guided by our vision of creating a world that runs entirely on
green energy and our strong commitment to the Paris Agreement and
the UN Sustainable Development Goals. We are fully on track to meet
our target of a 98% reduction of the carbon emission intensity from
our energy generation by 2025, making it essentially carbon
free.
We now take the next major step in our decarbonisation strategy
and announce a new target that covers the indirect carbon emissions
related to our business, which primarily relate to the sale of
natural gas and fossil-based power in our customer business, and to
the goods and services we source for construction of wind farms. By
2032, we want to reduce our indirect emissions by 50%, compared to
2018.
To further drive out carbon emissions from our business
operations, we today announce a new target to phase out
fossil-fuelled cars from our company car fleet and fully convert to
electric vehicles by 2025.
We remain very pleased with the operational and financial
performance of the company as we continue to expand our position as
a global leader in green energy."
Financial key figures for Q2 and H1 2019:
DKK million Q2 2019 Q2 2018 % H1 2019 H1 2018 %
============================== ======== ======== ====== ======== ======== =====
EBITDA 3,625 3,079 18% 8,755 8,598 2%
Profit (loss) for the period
from cont. operations 1,093 876 25% 3,732 3,908 (5%)
Profit (loss) for the period
from discount. Operations (18) (19) (5%) (61) (11) 455%
Profit (loss) for the period 1,075 857 25% 3,671 3,897 (6%)
Cash flows from operating
activities 7,510 3,293 128% 7,392 2,895 155%
Gross investments (3,368) (3,109) 8% (7,267) (5,180) 40%
Divestments (11) (14) (21%) 2,667 821 225%
Free cash flow 4,131 170 n.a. 2,792 (1,464) n.a.
Net interest-bearing debt 4,980 4,603 8% 4,980 4,603 8%
FFO/adjusted net debt (last
12 months) 58% 44% 13%p 58% 44% 13%p
ROCE (last 12 months) 29% 23% 6%p 29% 23% 6%p
============================== ======== ======== ====== ======== ======== =====
For further information, please contact:
Media Relations Investor Relations
Martin Barlebo Daniel Lerup
+45 99 55 95 52 +45 99 55 97 22
Conference call
In connection with the presentation of the interim financial
report a conference call for investors and analysts will be held on
Thursday 8 August 2019 at 14:00 CEST.
Denmark: +45 35 44 55 83
UK: +44 203 194 0544
US: +1 855 269 2604
The conference call can be followed live at:
https://orsted.eventcdn.net/201908H1/
Presentation slides will be available prior to the conference
call at:
https://orsted.com/financial-reports
The interim report is available for download at:
https://orsted.com/financial-reports
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NRAGUGDIDUGBGCI
(END) Dow Jones Newswires
August 08, 2019 02:02 ET (06:02 GMT)
Orsted 40 (LSE:44ZX)
Historical Stock Chart
From Dec 2024 to Jan 2025
Orsted 40 (LSE:44ZX)
Historical Stock Chart
From Jan 2024 to Jan 2025
