Orsted Reports Financial Results for the First Nine Months of 2023

By Editor


Orsted, a global leader in renewable energy, has released its financial report for the first nine months of 2023, showcasing both accomplishments and challenges.

Key Financial Highlights:

Operating profit (EBITDA) for the first nine months amounted to DKK 19.4 billion. Excluding new partnerships, EBITDA reached DKK 15.4 billion, representing a DKK 1.0 billion increase compared to the same period in the previous year.

Earnings from offshore sites amounted to DKK 13.0 billion, reflecting a remarkable DKK 6.8 billion increase year-on-year. This positive performance was attributed to the ramp-up at projects such as Hornsea 2 and Greater Changhua 1 and 2a and the absence of negative impacts from hedges that occurred in 2022.

Challenges Leading to Impairment:

Despite these promising results, Orsted faced challenges resulting from supply chain delays, increased interest rates, and the lack of an Offshore Renewable Energy Certificate (OREC) adjustment for the Sunrise Wind project. These issues prompted impairment losses of DKK 28.4 billion in the first nine months of 2023, with the majority (DKK 19.9 billion) related to the US offshore project Ocean Wind 1.

Net Profit and Capital Structure:

Net profit amounted to DKK -19.9 billion, with a return on capital employed (ROCE) of -14%. Net profit and ROCE, excluding impairment losses, were DKK 8.5 billion and 13%, respectively.

Outlook for 2023:

Orsted’s previously guided EBITDA for 2023, excluding new partnership agreements, remains unchanged at DKK 20-23 billion, with the exclusion of a provision of approximately DKK 8-11 billion related to potential cancellation fees following the decision to cease the development of Ocean Wind 1. Due to a shift in project schedules and the termination of investments in Ocean Wind 1, the gross investment for 2023 is now expected to be DKK 40-44 billion, a reduction of DKK 4 billion.

Mads Nipper, Group President and CEO of Orsted, commented on the company’s performance and the challenges faced in the US market, particularly with the Ocean Wind 1 project. He highlighted the need to take action to ensure capital structure, credit ratings, and competitiveness.

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