TIDM44ZX
Orsted A/S
12 August 2021
Interim report for the first half year of 2021
Significant US offshore capacity awarded, and several strategic
partnerships established in the first half. Full-year EBITDA
guidance maintained despite low wind speeds.
Today, Ørsted's Board of Directors approved the interim report
for the first half year of 2021.
Our operating profit (EBITDA) for the first half year amounted
to DKK 13.1 billion, a DKK 3.3 billion increase compared to the
same period last year. The increase was driven by a gain of DKK 5.4
billion from the 50 % farm-down of our Dutch offshore wind farm
Borssele 1 & 2.
Earnings from our offshore and onshore wind farms in operation
were DKK 0.3 billion lower compared to the same period last year.
The increased generation capacity from new wind farms in operation
was more than offset by significantly lower wind speeds across our
portfolio. As expected, higher TNUoS tariffs due to more UK wind
farms, lower earnings from Horns Rev 2 due to subsidy period ending
in October 2020, and lower ROC recycle prices also had a negative
impact.
Earnings from existing partnerships decreased by DKK 1.8 billion
compared with the same period last year. H1 2020 saw high earnings
from the construction agreement related to the Hornsea 1
transmission asset, whereas H1 2021 was negatively impacted by a
warranty provision towards partners related to cable protection
system issues at some of our offshore wind farms, as announced
earlier this year.
Our Bioenergy & Other business managed to achieve earnings
in line with the same period last year despite the divestment of
our Danish power distribution, residential customer, and city light
businesses in August 2020. This was due to exceptional performance
by our CHP plants and high earnings from our gas business.
Net profit amounted to DKK 7.1 billion and return on capital
employed (ROCE) came in at 12.5 %.
We maintain our full-year EBITDA guidance of DKK 15-16 billion.
However, due to the significantly lower than normal wind speeds
across our entire offshore wind portfolio (including in July) and
the warranty provision towards our partners related to cable
protection system issues at some of our wind farms, we currently
expect the outcome in the low end of the guided range. The guidance
is based on an assumption of normal wind speeds in the last five
months of the year. In line with previous years, our EBITDA
guidance does not include earnings from new partnerships during the
year, which means that the gain from the Borssele 1 & 2
farm-down is excluded from our full-year guidance.
With the closing of the acquisition of the European onshore
growth platform Brookfield Renewable Ireland in June and the
expected acquisition of the fully constructed 302 MW US onshore
wind project Lincoln Land later this year, we increase our
full-year gross investment guidance from DKK 32-34 billion to DKK
39-41 billion.
Mads Nipper, Group President and CEO of Ørsted, says in a
comment to the interim report for the first half year of 2021:
"In the first half of 2021, we've delivered good operational
performance, while reaching multiple significant milestones and
engaging in a range of strategic partnerships. Within our Offshore
business, Ocean Wind 2 was awarded a 1,148 MW contract in New
Jersey, fully utilising our Ocean Wind lease area. Our total
awarded US portfolio now exceeds 4 GW. We also entered into several
new strategic partnerships in Norway, Korea, Scotland, and Japan.
In our Onshore business, we commissioned our combined solar PV and
storage facility Permian Energy Center and our so far biggest
onshore wind farm Western Trail, both located in Texas.
At our Capital Markets Day in June, we updated our long-term
financial guidance and raised our strategic ambition for renewable
capacity to approx. 50 GW in 2030. As our industry's sustainability
leader, we've set the ambition that no later than 2030, all new
projects commissioned must have a net-positive biodiversity impact.
Furthermore, we commit to either reuse, recycle, or recover all of
the wind turbine blades in our global portfolio upon
decommissioning. In addition, in our H1 2021 report, we have taken
the first steps to commence reporting of our revenue, EBITDA, and
CAPEX according to the new EU taxonomy whose purpose is to support
the green transition."
Financial key figures for H1 2021:
DKK million Q2 2021 Q2 2020 % H1 2021 H1 2020 %
=========================== ========= ======== ======= ========= ======== ======
EBITDA 8,196 2,956 177 % 13,059 9,761 34 %
Profit (loss) for 186
the period 5,544 (825) n.a. 7,142 2,493 %
Cash flows from operating
activities 3,147 8,197 (62 %) 11,234 7,769 45 %
107
Gross investments (12,133) (3,757) 223 % (18,798) (9,065) %
Divestments 10,591 45 n.a. 10,560 52 n.a.
Free cash flow 1,605 4,485 (64 %) 2,996 (1,244) n.a.
Net interest-bearing (46
debt 12,067 22,272 (46 %) 12,067 22,272 %)
FFO/adjusted net
debt 63 % 43 % 20 %p 63 % 43 % 20 %p
ROCE 13 % 11 % 2 %p 13 % 11 % 2 %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 Thursday,
12 August 2021 at 14:00 CEST.
Denmark: +45 78 15 01 09
UK: +44 333 300 9268
USA: +1 833 823 0590
The earnings call can be followed live at:
https://edge.media-server.com/mmc/p/vps2auvq
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
This information is provided by Reach, the non-regulatory press
release distribution service of RNS, part of the London Stock
Exchange. 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.
Reach is a non-regulatory news service. By using this service an
issuer is confirming that the information contained within this
announcement is of a non-regulatory nature. Reach announcements are
identified with an orange label and the word "Reach" in the source
column of the News Explorer pages of London Stock Exchange's
website so that they are distinguished from the RNS UK regulatory
service. Other vendors subscribing for Reach press releases may use
a different method to distinguish Reach announcements from UK
regulatory news.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NRAGLGDIUXBDGBD
(END) Dow Jones Newswires
August 12, 2021 02:38 ET (06:38 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
