TIDM44ZX
Orsted A/S
28 October 2020
Interim report for the first nine months of 2020
Strong financial results. Portfolio transformation
completed.
Today, Ørsted's Board of Directors approved the interim report
for the first nine months (9M) of 2020. Our operating profit
(EBITDA) amounted to DKK 13.1 billion, a 2% increase compared to
the same period last year.
Earnings from offshore and onshore wind farms in operation
increased by 16% to DKK 11.6 billion driven by the ramp-up of power
generation from Hornsea 1, Borssele 1 & 2, Lockett, Sage Draw,
and Plum Creek.
In August, we closed the divestment of our Danish power
distribution, residential customer, and city light businesses. The
transaction resulted in a gain of DKK 11.1 billion. As a result,
net profit amounted to DKK 14.6 billion.
R eturn on capital employed (ROCE) came in at 9%.
The green share of our heat and power generation increased from
83% to 89%.
Our EBITDA guidance is unchanged relative to the guidance in our
interim financial report for H1 2020, and thus we reiterate our
EBITDA guidance of DKK 16-17 billion in 2020. We maintain our
expectations for gross investments of DKK 28-30 billion in
2020.
Henrik Poulsen, CEO and President of Ørsted, says:
"Despite the tenacious COVID-19 pandemic, our operations and
financial performance in Q3 remain stable and fully in line with
our expectations from the beginning of the year.
In Q3 2020, we reached an important strategic milestone for
Ørsted as we completed our portfolio transformation into a global
renewable energy company with the divestment of our Danish power
distribution (Radius), residential customer, and city light
businesses to the Danish energy company SEAS-NVE.
The construction of offshore wind, onshore wind, and solar PV
assets across the globe is progressing satisfactorily, despite the
challenges caused by the COVID-19 pandemic. In Q3, we commissioned
our onshore wind farm Willow Creek in Nebraska, US, and installed
the last wind turbine at our offshore wind farm Borssele 1 & 2
in the Netherlands.
We took final investment decision on the onshore wind farm
Western Trail in Texas in September. The greenfield project has a
capacity of 367MW, is eligible for 100% PTC, and is expected to be
commissioned during Q3 2021.
In addition, we acquired Haystack, a 298MW onshore wind
development project in Nebraska, in October. The late-stage project
further expands our portfolio in the SPP region. Haystack is
expected to be commissioned during Q4 2021 and is also eligible for
100% PTC.
In October, we have submitted bids in the up to 2.5GW auction in
New York. We expect to receive the outcome of the auction before
year end.
Together with Yara, the world's leading fertilizer company, we
have launched a joint renewable hydrogen project in the
Netherlands. The project will include a 100MW electrolyser plant
generating renewable hydrogen based on Ørsted's offshore wind
farms. The renewable hydrogen will replace fossil-based hydrogen in
the production of green ammonia at Yara's ammonia manufacturing
facility with the potential to abate more than 100,000 tonnes of
carbon emissions per year.
In mid-October, the Renescience plant in Northwich, UK, was
successfully commissioned after passing the final performance test.
With the commissioning of Renescience, we reached an important
milestone, and we will now continue to monitor the plant's
performance, while exploring the broader commercial potential of
the waste treatment technology.
In September, the Board of Directors appointed Mads Nipper my
successor as CEO of Ørsted. Mads is a highly accomplished leader,
and with his visionary thinking and strategic skills, Ørsted's
continued global expansion is in very good hands. It has been an
exceptional privilege to be part of the Ørsted team over the past
eight years. This will be my last report as CEO, and therefore I
will conclude by expressing my deepest gratitude to Ørsted's
shareholders, the Board of Directors, the management team and not
least Ørsted's employees for their relentless pursuit of our vision
and their confidence and support during my tenure."
Financial key figures for Q3 2020 and 9M 2020:
DKK million Q3 2020 Q3 2019 % 9M 2020 9M 2019 %
============================== ======== ======== ======= ========= ========= =======
EBITDA 3,360 4,116 (18%) 13,121 12,871 2%
Profit (loss) for the period
from cont. operations 12,016 1,443 n.a. 14,553 5,175 181%
Profit (loss) for the period
from discont. operations 18 34 (47%) (26) (27) (4%)
Profit (loss) for the period 12,034 1,477 n.a. 14,527 5,148 182%
Cash flows from operating
activities 1,941 871 123% 9,710 8,263 18%
Gross investments (9,263) (7,222) 28% (18,328) (14,489) 26%
Divestments 20,506 260 n.a. 20,558 2,927 n.a.
Free cash flow 13,184 (6,091) n.a. 11,940 (3,299) n.a.
Net interest-bearing debt 8,216 12,082 (32%) 8,216 12,082 (32%)
FFO/adjusted net debt 36% 47% (11%p) 36% 47% (11%p)
ROCE 9% 29% (20%p) 9% 29% (20%p)
============================== ======== ======== ======= ========= ========= =======
For further information, please contact:
Media Relations Investor Relations
Martin Barlebo Allan Bødskov Andersen
+45 99 55 95 52 +45 99 55 79 96
Earnings call
In connection with the presentation of the interim report, an
earnings call for investors and analysts will be held on Wednesday,
28 October 2020 at 14:00 CEST.
Denmark: +45 82 33 31 94
International: +44 333 300 9274
USA: +1 833 526 8398
The earnings call can be followed live at:
https://edge.media-server.com/mmc/p/79p2v9ea
Presentation slides will be available prior to the earnings call
at:
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
The interim report is available for download at:
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0
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END
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