Ørsted reports an operating profit (EBITDA) for 2024 based on preliminary and unaudited figures. EBITDA, excluding new partnership agreements and cancellation fees, is expected to reach DKK 24.8 billion, aligning with the company’s latest guidance. Earnings from Offshore and Onshore operations were the primary contributors, performing as anticipated.
In the fourth quarter of 2024, a 75-basis-point rise in long-term US interest rates increased the weighted average cost of capital, negatively affecting the value-in-use of the US portfolio, particularly offshore wind projects. This led to an impairment charge of DKK 4.3 billion.
Additionally, updated market valuations for seabed leases off New Jersey, Maryland, and Delaware, reflecting broader market uncertainties, resulted in a further impairment of DKK 3.5 billion. Although this significantly reduces the book value of these leases, Ørsted maintains that they retain strategic value, given the long-term potential of the US offshore wind market.
The Sunrise Wind project faces a tight construction schedule with supply chain and construction challenges. Insights gained from Revolution Wind, currently under construction, have prompted adjustments to Sunrise Wind’s timeline and cost estimates. Key revisions include delays in the installation of the first US offshore HVDC system and increased costs, particularly for monopile foundations. Consequently, the project’s commissioning has been postponed to the second half of 2027, and additional expenses have driven a DKK 4.3 billion impairment for Q4 2024.
The combined impact of rising interest rates, seabed lease revaluations, and Sunrise Wind execution costs has resulted in total impairments of DKK 12.1 billion for Q4 2024.
