Orsted A/S Interim report for the first nine months of 2022

TIDM44ZX

Orsted A/S

03 November 2022

Interim report for the first nine months of 2022 - full-year EBITDA guidance increased and strategic milestones achieved with new partnerships and acquisitions

Today, Ørsted's Board of Directors approved the interim report for the first nine months of 2022.

Our operating profit (EBITDA) for the first nine months of the year amounted to DKK 25.4 billion, of which DKK 10.9 billion related to the 50 % farm-downs of Hornsea 2 and Borkum Riffgrund 3.

EBITDA excluding new partnerships increased by 3.8 billion and amounted to DKK 14.4 billion.

Net profit amounted to DKK 15.3 billion, and return on capital employed (ROCE) came in at 24 %.

We have increased our full-year EBITDA guidance with DKK 1 billion to DKK 21-23 billion excluding earnings from new partnerships during the year, i.e. excluding the gains from the 50 % farm-downs of Borkum Riffgrund 3 and Hornsea 2. The increase is primarily due to higher earnings from our CHP plants.

We have lowered our gross investments guidance by DKK 5.0 billion to DKK 38-42 billion, mainly due to timing effects on projects, with lower spend in 2022 than originally planned.

Mads Nipper, Group President and CEO of Ørsted, says in a comment to the interim financial report for the first nine months of 2022:

"Despite the highly unusual and volatile period with war, high inflation, and increasing interest rates Ørsted has continued the build-out of renewable energy and the delivery of power and heat to our communities. Most of the power delivered was under fixed-price agreements or hedged.

In these unprecedented times, I am very pleased that we have been able to increase our EBITDA guidance to DKK 21-23 billion for the year.

We reached several strategic milestones in the build-out of renewable energy during the quarter, including the acquisition of Ostwind, which expands our European onshore portfolio into Germany and France with more than 1.5 GW of development pipeline projects, and a pioneering partnership with Copenhagen Infrastructure Partners (CIP) with the aim to develop approx. 5.2 GW of offshore wind in Denmark.

I am also proud that we just entered into a new five-year global partnership with WWF to unite action on climate and ocean biodiversity. The partnership aims to drive a fundamental change in the approach to integrating action on climate and biodiversity by advancing offshore wind that strives to achieve a net-positive biodiversity impact."

Financial key figures for Q3 and 9M 2022:

 
 DKK million                         Q3 2022   Q3 2021        %    9M 2022    9M 2021       % 
=================================  =========  ========  =======  =========  =========  ====== 
 EBITDA                               12,317     2,984    313 %     25,361     16,043    58 % 
 - New partnerships                    9,346      (59)     n.a.     10,916      5,296   106 % 
 - EBITDA excl. New partnerships       2,971     3,043    (2 %)     14,445     10,747    34 % 
                                                           1821 
 Profit (loss) for the period          9,355       487        %     15,325      7,629   101 % 
 Cash flow from operating 
  activities                        (11,309)       246     n.a.    (8,991)     11,480    n.a. 
 Gross investments                  (14,417)   (8,757)     65 %   (27,621)   (27,555)     0 % 
 Divestments                          22,459         7     n.a.     24,653     10,567   133 % 
 Free cash flow                      (3,267)   (8,504)   (62 %)     11,959    (5,508)   117 % 
 Net interest-bearing debt            45,701    21,211    115 %     45,701     21,211   115 % 
                                        35.3      42.5                35.3       42.5 
 FFO/adjusted net debt                     %         %    (7 %)          %          %   (7 %) 
                                        24.4      12.9                24.4       12.9 
 ROCE                                      %         %    12 %p          %          %   12 %p 
=================================  =========  ========  =======  =========  =========  ====== 
 

For further information, please contact:

   Media Relations                 Investor Relations 
   Martin Barlebo                    Rasmus Keglberg Hærvig 
   [phone]                  [phone] 

Earnings call

In connection with the presentation of the interim report for the first nine months, an earnings call for investors and analysts will be held on Thursday, 3 November 2022 at 14:00 CET.

Denmark: [phone]

The UK: [phone]

The US: [phone]

The earnings call can be followed live at:

https://edge.media-server.com/mmc/p/a6p6zq4d

Presentation slides will be available prior to the earnings call at:

Investors | Ørsted (orsted.com)

The interim report is available for download at:

www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0

Attachments to this company announcement:

Interim financial report 9M 2022

http://www.rns-pdf.londonstockexchange.com/rns/1986F_1-2022-11-3.pdf

Company announcement

http://www.rns-pdf.londonstockexchange.com/rns/1986F_2-2022-11-3.pdf

Investor presentation

http://www.rns-pdf.londonstockexchange.com/rns/1986F_3-2022-11-3.pdf

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November 03, 2022 04:00 ET (08:00 GMT)