“The year 2024 proved to be a challenging year for the industry and for Ørsted. We’ve experienced headwinds and have therefore taken necessary actions, including the adjustment of our business plan with a reduced investment programme, to strengthen our capital structure and value creation.
“Our partnership and divestment programme is on track, with several divestments initiated and concluded during the year. Total proceeds from the transactions make up DKK 22 billion of the target of DKK 70-80 billion through 2026.
“I’d like to express my sincere gratitude to our skilled colleagues, who have, throughout a year of uncertainty and redundancies, yet again proved their unwavering commitment, and who continue to drive the energy transition forward. I remain optimistic about the future of the renewable energy industry, and I’m confident that Ørsted will continue be a key contributor in accelerating the renewable build-out in the years to come.”
Guidance
In 2025, EBITDA excluding new partnership agreements and cancellation fees is expected to be DKK 25-28 billion, and gross investments are expected to be DKK 50-54 billion.
Results 2024
Operating profit (EBITDA) for 2024 amounted to DKK 32.0 billion compared to DKK 18.7 billion in 2023, of which DKK 7.3 billion related to a net reversal of provisions for cancelled projects. EBITDA excluding new partnerships and cancellation fees amounted to DKK 24.8 billion, an increase of DKK 0.7 billion compared to 2023 and in line with our guidance of DKK 24-26 billion.
Earnings from our offshore sites amounted to DKK 23.8 billion, which was an increase of DKK 3.6 billion compared to 2023. The increase was driven by the ramp-up of generation at our offshore wind farms Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, higher wind speeds, and higher prices on our inflation-indexed CfDs and green certificates.
In 2024, we recognised impairments of DKK 15.6 billion, with the majority (DKK 14.1 billion) relating to our US projects and stemming from our decision to cease construction of FlagshipONE (DKK 1.5 billion). The US impairments were driven by an increase in the US long-dated interest rate, a lower market-informed valuation of our US seabeds, construction delays, and higher expected costs for our US projects Revolution Wind and Sunrise Wind. Profit for the year amounted to DKK 0.0 billion. Excluding impairments (after tax) and cancellation fees, profit for the year was DKK 6.4 billion.
Return on capital employed (ROCE) came in at 4.5 %. ROCE adjusted for impairment losses and cancellation fees was 10.1 %.
