Orsted revenue drops 25% to DKK 19.2 bn in first-quarter

By Editor


Orsted said its revenue decreased 25 percent in Q1 2024 to DKK 19.2 billion primarily due to lower power prices across markets.

Orsted has generated sales revenue of DKK 13,991 million from Offshore, DKK 705 million from Onshore and DKK 4,586 million from Bioenergy in the first-quarter.

Orsted says gross investments in 2024 are expected to amount to DKK 48-52 billion, which is unchanged relative to the guidance in the annual report.

Orsted’s revenue from construction agreements was DKK 846 million in Q1 2024 and mainly related to the construction of Borkum Riffgrund 3 and Gode Wind 3 for partners. Income from government grants in Offshore increased due to lower power prices, which led to a higher subsidy per MWh produced.

Power generation from offshore and onshore assets increased by 6 percent and totalled 9.4 TWh in Q1 2024. The increase was due to ramp-up of generation from our offshore wind farms Greater Changhua 1 and 2a and South Fork and our onshore wind farm Sunflower as well as higher offshore wind speeds.


During Q1 2024, Orsted has been constructing 7.6 GW of offshore wind across three regions.

In Taiwan, the Greater Changhua 1 and 2a wind farms are close to being completed, with all 111 wind turbines installed in February. Final commissioning (COD) is expected in Q2 2024.

In the US, all turbines were installed at offshore wind farm South Fork in February, and final commissioning is expected in Q2 2024.

In Germany, installation of foundations has now begun at Borkum Riffgrund 3, and at Gode Wind 3, the first of 23 array cables were installed in March. Borkum Riffgrund 3 continues to be on a compressed schedule.

Orsted has started construction on offshore wind farms Greater Changhua 2b and 4 in Taiwan, Revolution Wind and Sunrise Wind in the US, and Hornsea 3 in the UK.

In Onshore, its four US construction projects show good progress. Eleven Mile Solar Center (600 MWAC), a solar and battery energy storage system in Arizona, is conducting final testing, and commissioning remains on track for Q2 2024.

In Texas, the construction of 471 MWAC Mockingbird Solar Center is progressing as planned, with COD expected in H2 2024. For the two solar projects Old 300 (430 MWAC) and Sparta Solar (part of Helena Energy Center, 250 MWAC), all modules are now in the US and final installations have commenced.

It expects COD on both projects during 2024.

As part of updated business plan, Orsted revised build-out targets for onshore renewables towards 2030 and is concentrating build-out on the UK, Irish, German, and Spanish markets.

Consequently, Orsted agreed to divest onshore wind and solar assets in France to ENGIE. Orsted signed an agreement with Stonepeak to divest a share of four operational US onshore assets (957 MW).


Operating profit (EBITDA) excluding new partnerships and cancellation fees for the first quarter amounted to DKK 7.5 billion, DKK 0.6 billion higher than in the same period last year.

Earnings from offshore sites amounted to DKK 6.9 billion, which was DKK 1.1 billion higher than in the same period last year. The increase was due to higher wind, ramp-up of Greater Changhua 1 and 2a and South Fork, and higher prices on the inflation-indexed CfDs and green certificates. This was partly offset by reduced capacity in the export transmission cables at Hornsea 1 due to an issue with the electrical infrastructure, which is being resolved during the second quarter.

Net profit amounted to DKK 2.6 billion, which was below the same period last year. While net profit was positively impacted by higher EBITDA and an impairment reversal on our Sunrise Wind project, our tax expenses were affected by the recognition of a deferred tax liability related to an initial tax equity contribution for our US onshore project, Eleven Mile.

Return on capital employed (ROCE) came in at -12 percent, primarily due to the impairment losses and cancellation fees impacting EBIT during the 12-month period. ROCE adjusted for impairment losses and cancellation fees in Q1 2024 was 12.5 percent.

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