Ørsted’s Earnings from Operational Offshore Wind Farms Up 20 Pct

Ørsted has reported 2024 earnings from its operational offshore wind farms of DKK 23.8 billion (approximately EUR 3.2 billion), up by 20 per cent compared to 2023.

The global offshore wind developer said on 6 February the increase was mainly due to the ramp-up of generation at Greater Changhua 1 and 2a offshore wind project in Taiwan, South Fork in the US, and Gode Wind 3 in Germany, as well as higher wind speeds, higher pricing of the inflation-indexed CfDs and green certificates. The increase in 2024 was dampened by lower availability, according to the company.

In 2024, Ørsted recognised net impairments of DKK 15.6 billion (approx. EUR 2.1 billion), with the majority (DKK 14.1 billion, approx. EUR 1.9 billion) related to its US projects and the decision to cease construction of FlagshipONE (DKK 1.5 billion; approx. EUR 201 million).

“The US impairments were due to 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”, the company said after posting its full-year results for 2024.

Ørsted’s profit for 2024 amounted to DKK 0.0 billion and excluding impairments (after tax) and cancellation fees, profit for the year was DKK 6.4 billion (around EUR 858 million).

Looking at the company’s operating profit for 2024, Ørsted’s EBITDA was DKK 32 billion (around EUR 4.3 billion), up from DKK 18.7 billion (approx. EUR 2.5 billion) in 2023, of which DKK 7.3 billion (approx. EUR 979 million) was related to a net reversal of provisions for cancelled projects. EBITDA excluding new partnerships and cancellation fees amounted to DKK 24.8 billion (around EUR 3.3 billion), an increase of DKK 700 million (approx. EUR 94 million) compared to 2023 and in line with the company’s guidance of DKK 24-26 billion (around EUR 3.2-3.5 billion).

“We are pleased with our operational performance and financials results, where we ended the year in line with our updated expectations. Furthermore, we successfully renegotiated and settled contracts related to the close-down of Ocean Wind with an outcome better than assumed, resulting in a net reversal of cancellation fees of DKK 7.3 billion”, said Rasmus Errboe, Group President and CEO of Ørsted.

“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.”

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