Ørsted’s Projects On Track as Planned

Ørsted’s construction projects are all progressing according to plans, the offshore wind developer reported on 25 March, referring to the current situation with the world fighting the COVID-19 pandemic.

The company said it did not see any permits, consents, tax credits, or offtake agreements in relation to its construction projects being at risk due to delays.

Following the outbreak of COVID-19, the company activated its Corporate Crisis Management Organisation, headed by the Executive Committee and chaired by CEO Henrik Poulsen.

Ørsted states that its operational and financial situation remains stable and that its first priority is the health and well-being of its employees and their families, as well as the communities Ørsted is a part of.

The company has implemented preventive measures in accordance with national guidelines and regulations in countries in which it operates.“We will implement further measures as deemed necessary, and in accordance with the development of local authorities’ guidelines,” the company said.

Regarding its financial status amid the global crisis, Ørsted said that it remained largely shielded in the short to medium term from the current extreme market volatility due to its extensive hedging programme.

The company has more than DKK 30 billion (approx. EUR 4 billion) in liquidity reserves (cash, cash equivalents, and committed facilities), which can support operations and construction programmes through 2020 and 2021 without further funding.  

While everything remains on track, for the time being, the company still sees some risks potentially impacting its activities further down the road, if the current global situation pertains.

These are mostly related to travel restrictions and quarantines that might affect employee availability, critical component suppliers, as well as permitting and consenting authorities.

“While we recognise the significantly increased global uncertainty, our business model remains resilient, our operations remain stable, and we maintain our financial guidance for 2020,” Ørsted said.