Orsted has added over 2.4 GW of renewable capacity for the first nine months, with further growth secured in the UK, including 3.5 GW in new awards for the Hornsea 3 and 4 projects, supporting long-term capacity goals.
Offshore wind projects Revolution Wind and Sunrise Wind in the US are advancing, though Revolution Wind faces construction challenges, especially in the onshore substation and offshore substation monopile installation, leading to added contingencies.
Orsted said its operating profit (EBITDA) for the first nine months was DKK 23.6 billion, a significant increase from DKK 19.4 billion in the same period last year. This included a DKK 6.4 billion net reversal of cancellation fees following the renegotiation of contracts for Ocean Wind.
Orsted has narrowed its full-year EBITDA guidance to DKK 24-26 billion, excluding new partnerships and cancellation impacts. Additionally, gross investment guidance was reduced by DKK 8 billion, now expected between DKK 36-40 billion due to timing shifts across projects.
Impairment losses amounted to DKK 3.4 billion for 9M 2024, driven by delays and increased risks in Revolution Wind and the decision to cease FlagshipONE execution. Offsets included a higher OREC award for Sunrise Wind from New York and benefits from reduced US long-term interest rates.
Earnings from offshore sites reached DKK 15.3 billion, a DKK 2.2 billion increase due to increased production at Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, along with higher wind speeds and inflation-indexed price boosts.
Return on Capital Employed (ROCE) was 8.1 percent, with an adjusted ROCE of 11.5 percent after accounting for impairments and cancellation fees.
Orsted CEO Mads Nipper highlighted Orsted’s strong financial performance and operational achievements, including progress on strategic divestments and new growth opportunities, while noting ongoing efforts to mitigate risks in US projects.