Mads Nipper, Group President and CEO of Ørsted, says in a comment to the interim financial report for the first half year of 2023: “We're pleased with the results for the first half year of 2023, where our Offshore business is back with strong earnings. We’re also very pleased to have announced several strategic updates and partnerships leading up to and during our Capital Markets Day in London in June.
Among significant strategic milestones during the quarter, we received development consent for Hornsea 4, one of the world’s largest offshore wind farms with a capacity of up to 2.6 GW. Furthermore, we entered into a partnership with ESB, Ireland’s leading utility company, to jointly develop an Irish offshore wind portfolio and signed an agreement to acquire Eversource’s 50 % interest in Lease Area 500 in the US. With this added seabed, our portfolio of north-eastern US lease rights amounts to more than 4 GW, making Ørsted’s lease capacity the largest in the region.
We’re pleased that New Jersey has enacted a law that allows Ocean Wind 1 to access and retain all federal tax credits without any additional costs to New Jersey ratepayers. This is an important and necessary step to ensure the project’s viability following the substantial cost increases experienced across the US offshore projects.
Finally, as the first energy developer, we’ve committed to reuse or recycle all solar panels from our global portfolio of solar farms with immediate effect.
We maintain our EBITDA guidance of DKK 20-23 billion excluding earnings from new partnerships during the year. However, compared to the guidance provided in our annual report for 2022, we now expect higher earnings in Offshore than initially announced. In contrast, we expect earnings for our CHP plants to drop by approx. DKK 4 billion compared to 2022, rather than by approx. DKK 3 billion.
We lower our gross investment guidance for 2023 by DKK 6 billion to DKK 44-48 billion, primarily due to timing. However, we expect to spend approx. DKK 6 billion on acquiring PSEG’s ownership share of Ocean Wind 1 and Eversource’s ownership share of Lease Area 500 in the US. As these transactions are with non-controlling shareholders, they are not included in ‘Gross investments’, but they are included in ‘Net investments’.
Financial key figures for H1 2023:
|
DKK million
|
Q2 2023
|
Q2 2022
|
%
|
H1 2023
|
H1 2022
|
%
|
|
EBITDA
|
3,320
|
3,615
|
(8 %)
|
10,230
|
13,044
|
(22 %)
|
|
- New partnerships
|
0
|
0
|
n.a.
|
0
|
1,610
|
n.a.
|
|
- EBITDA excl. new partnerships
|
3,320
|
3,615
|
(8 %)
|
10,230
|
11,434
|
(11 %)
|
|
Profit (loss) for the period
|
(538)
|
269
|
n.a.
|
2,664
|
5,970
|
(55 %)
|
|
Cash flow from operating activities
|
2,447
|
2,355
|
4 %
|
12,566
|
2,318
|
442 %
|
|
Gross investments
|
(7,498)
|
(6,372)
|
18 %
|
(16,266)
|
(13,204)
|
23 %
|
|
Divestments
|
(2,038)
|
267
|
n.a.
|
(2,054)
|
2,194
|
n.a.
|
|
Free cash flow
|
(7,089)
|
(3,750)
|
89 %
|
(5,754)
|
(8,692)
|
(34 %)
|
|
Net interest-bearing debt
|
43,924
|
41,449
|
6 %
|
43,924
|
41,449
|
6 %
|
|
FFO/adjusted net debt
|
17.7 %
|
39.0 %
|
(21 %p)
|
17.7 %
|
39.0 %
|
(21 %p)
|
|
ROCE
|
13.2 %
|
14.8 %
|
(2 %p)
|
13.2 %
|
14.8 %
|
(2 %p)
|
