Annual report for 2023 – strong underlying results and strategic progress in a challenging year

Today, Ørsted’s Board of Directors approved the annual report for 2023.

Operating profit (EBITDA) for the year amounted to DKK 18.7 billion. Excluding new partnerships and cancellation fees, EBITDA amounted to DKK 24.0 billion, above our guidance of DKK 20-23 billion.

EBITDA from offshore sites more than doubled to DKK 20.2 billion in 2023 due to ramp-up of generation at Hornsea 2 and Greater Changhua 1 and 2a, and as the negative effects from hedges in 2022 were not repeated in 2023.

EBITDA in 2023 was impacted by a provision of DKK 9.6 billion for cancellation fees related to our decision to cease the development of Ocean Wind 1. In addition, we recognised impairment losses of DKK 26.8 billion in 2023. The majority of these (DKK 19.9 billion) related to Ocean Wind 1.

Net profit amounted to DKK -20.2 billion, and return on capital employed (ROCE) came in at -14 %. Net profit and ROCE excluding impairment losses and cancellation fees amounted to DKK 14.9 billion and 12.9 %, respectively.

As part of our Capital Markets Update announced earlier today, the Board of Directors have decided to pause dividend payments for the financial years 2023-2025. Hereafter, the target is to reinstate dividend payments.

In 2024, EBITDA excluding new partnership agreements and cancellation fees is expected to be DKK 23-26 billion, and gross investments are expected to be DKK 48-52 billion.

Mads Nipper, Group President and CEO of Ørsted, says:

“Despite a year with strong underlying business progress, 2023 marked a year with substantial challenges for Ørsted. Our financial results are adversely affected by the impairments we took on our US offshore projects in the third quarter of 2023 and the provision for cancellation fees related to ceasing the development of the offshore project Ocean Wind 1.

“We’ve thoroughly reviewed the events leading up to our decision to cease the development of our Ocean Wind 1 project and are implementing the learnings into our operating model to reduce risks in the development and execution of projects. Despite the short-term challenges, our traction and underlying momentum was strong in 2023. We delivered strong operational results in 2023 with an adjusted EBITDA slightly above our guidance and with several important milestones achieved. Earnings from our offshore sites more than doubled compared to last year, and in 2023, we advanced three large offshore wind projects with a total capacity of 4.5 GW to final investment decision, one in the UK, the US, and Taiwan, respectively.

“Today, we’ve presented an updated business plan, including a strategic ambition of 35-38 GW installed renewable capacity by 2030, based on a comprehensive portfolio review. We’ve revisited our portfolio to prioritise growth options with the highest potential for value creation and at the same time reduce risks in the development and execution of our projects. We remain optimistic about the future of the renewable energy industry, and we’re confident we can be a key contributor in accelerating the renewable build-out in the years to come.”

Financial key figures for 2023:

DKK million
Q4 2023
Q4 2022
2023 2023
EBITDA -686 6,696
18,717 32,057 -42%
- New partnership 317 77 312% 4,324 10,993
(61  %)
- Cancellation fees -9,621 0
-9,621 0
- EBITDA excl. new partnerships and cancellation fees 8,618 6,619 30% 24,014 21,064 14%
Profit (loss) for the period -284 -329 -14% -20,182 14,996
Cash flow from operating activities 6,170 20,915 -70% 28,532 11,924 139%
Gross Investments -13,039 -9,826 33% -38,509 -37,447 3%
Divestments 1,861 983 89% 1,542 25,636 -94%
Free cash flow -5,008 12,072
-8,435 113
Net Interest-bearing debt 47,379 30,571 55% 47,379 30,571 55%
FFO/adjusted net debt  28.60% 42.70%
(14 %p)
28.60% 42.70%
(14 %p)
ROCE -14.20% 16.80%
(31 %p)
-14.20% 16.80%
31 %p)

For further information, please contact: 

Ørsted Asia-Pacific Media Relations
Rachel Chan
+886 933 529 367