Ørsted has revised its business plan to reinforce its capital structure through a more focused investment approach. The company will prioritise high-value growth opportunities with a reduced, self-funded investment programme.
In 2024, Ørsted reported EBITDA of DKK 24.8 billion (excluding new partnerships and cancellation fees) and commissioned 2.4 GW of new renewable capacity. Key developments included securing 3.5 GW of offshore wind capacity in the UK and making the final investment decision on the Baltica 2 offshore wind farm in Poland.
Despite meeting financial expectations, challenges in the US offshore wind sector have put pressure on Ørsted’s credit metrics. Combined with wider difficulties in the renewable energy industry, these factors have led the company to scale back its investment programme by around 25% compared to previous targets. The revised strategy aims to maintain a solid investment-grade credit rating.
Ørsted will improve its financial position by reducing investments, ensuring timely execution of construction projects, and continuing asset divestments. The investment programme will be funded through operating cash flow, partnerships, divestments, tax equity, and debt issuance, without requiring new equity. The company will also focus on geographies and technologies with the strongest value potential while continuing its efficiency programme to cut costs beyond the DKK 1 billion savings achieved in 2024.
These adjustments will not affect the 9 GW of renewable projects currently under construction, which will expand Ørsted’s capacity from 18 GW to over 27 GW.
Revised Financial Targets and Policies
Ørsted has set new financial targets for 2024-2030:
- Investment programme of DKK 210-230 billion.
- EBITDA (excluding new partnerships and cancellation fees) expected to rise to DKK 29-33 billion in 2026.
- Return on capital employed (ROCE) projected to average 13%.
- Commitment to maintaining a solid investment-grade credit rating.
- Target to reinstate dividends from the 2026 financial year.
Ørsted has discontinued its previous ambition of installing 35-38 GW of renewable capacity by 2030 and its EBITDA target of DKK 39-43 billion for that year.
