Balance Sheet: Ørsted Posts Positive Result After Nine Months - Annual Forecast Raised - Share Under Pressure Due to US Election

Fredericia, Denmark - Ørsted has presented its figures for the first nine months of 2024. Although turnover has fallen, the Danish energy company has significantly improved its operating result compared to the same period last year and raised its forecast for the year as a whole.

However, the share price has fallen significantly this week due to the outcome of the US election.

Overall, Ørsted achieved a turnover of around DKK 50 billion (EUR 6.7 billion) from January to September. Compared to the same period last year, this represents a decline of 13.5 percent (9M 23: DKK 57.7 billion / EUR 7.7 billion). The operating result (EBITDA) amounted to DKK 23.6 billion (EUR 3.16 billion) in the 9-month period, which corresponds to an increase of almost 22 percent compared to the previous year (9M 23: DKK 19.4 billion / EUR 2.6 billion).

Income from the offshore locations amounted to around DKK 15.3 billion (EUR 2.1 billion). Compared to the same period last year, this is an increase of a good DKK 2.2 billion (9M 23: around DKK 13.0 billion / EUR 1.7 billion). According to Ørsted, the increase is due to the ramp-up of generation at the offshore wind farms Greater Changhua 1 and 2a, South Fork and Gode Wind 3, higher wind speeds and higher prices for the inflation-indexed CfDs and green certificates.

Following a loss in the same period last year, Ørsted is back in the black from January to September 2024 with a net profit of DKK 6.1 billion (EUR 0.8 billion) (9M 23: DKK -19.9 billion / EUR -2.7 billion). The return on capital employed (ROCE) amounted to 8.1 percent. Adjusted for impairments and cancellation fees, ROCE amounted to 11.5 percent in the nine-month period.

Mads Nipper, CEO of Ørsted: “I am pleased with our operational performance and financials results. Based on solid 9M earnings, we have narrowed our EBITDA guidance for the year. Furthermore, we have successfully renegotiated and settled contracts related to the close-down of Ocean Wind with a positive outcome, resulting in a net reversal of cancellation fees of DKK 6.4 billion.”

Based on the solid results for the first nine months, Ørsted has raised its EBITDA guidance for the full year to DKK 24-26 billion (EUR 3.2-3.5 billion) (previously DKK 23-26 billion / EUR 3.1-3.5 billion).

In the current trading week, the Ørsted share has not been able to benefit from the positive business figures in light of the results of the US presidential election and the uncertain development of the offshore wind business in the USA. After four trading days, the share is down 8.7 percent at EUR 50.52 (closing price, November 8, 2024, Stuttgart Stock Exchange).

Source: IWR Online, 08 Nov 2024