Ørsted Powers Through Pandemic

World’s leading offshore wind developer Ørsted reported a 17 per cent increase in earnings from offshore and onshore wind farms in operation in the first half of 2020.

The earnings, which stood at DKK 8.2 billion (EUR 1.08 billion), were driven by the ramp-up of power generation from the Hornsea Project One offshore wind farm, and Lockett and Sage Draw onshore wind farms, together with high wind speeds.

The revenue from offshore wind farms for the period was DKK 17.3 billion, with gross investments amounting to DKK 7.1 billion.

The wind speeds in the first half of 2020 averaged 10.1 m/s, as compared to 9.2 m/s in the same period a year earlier.

Power generation from offshore and onshore wind increased by 42 per cent and totalled 9.8 TWh in the first half of 2020, mainly due to the ramp-up of generation from Hornsea One, Lockett and Sage Draw, and to some extent the Borssele 1 & 2 offshore wind farm, as well as higher wind speeds throughout the period.

Power generation offshore increased by 36 per cent to 7.2 TWh for the period compared to H1 2019 when it stood at 5.3 TWh.

The production-based availability offshore amounted to 93 per cent, up one percentage point compared to the same period last year.

Overall, Ørsted’s operating profit (EBITDA) amounted to DKK 9.8 billion, an 11 per cent increase compared to the same period last year.

Net profit amounted to DKK 2.5 billion and return on capital employed (ROCE) came in at eleven per cent. The company’s green share of the heat and power generation increased from 82 per cent to 88 per cent.

The EBITDA guidance for the year is unchanged and stands at DKK 16-17 billion in 2020. The expectations of gross investments were lowered by DKK 2 billion to DKK 28-30 billion in 2020 due to the changed timing of payments.

“Despite the comprehensive health, social, and economic consequences of COVID-19, Ørsted has maintained stable operations and strong earnings during 2020. Our asset base has continued to be fully operational and we have maintained normal availability rates on our offshore and onshore wind farms,” Henrik Poulsen, CEO and President of Ørsted, said.

”We have however seen negative COVID-19 related effects on European power markets, especially in the UK, driven by lower demand for electricity. The negative impact on our Q2 earnings was approx. DKK 150 million. A contained impact which does not change our full-year expectations.”