Ørsted's operations have performed well, particularly earnings from its offshore wind farms. In the first half of the year, the company successfully executed its updated business plan, bringing nearly 2 GW of renewable energy capacity online.
However, despite encouraging progress on its US offshore wind project, Revolution Wind, construction of the onshore substation has been delayed, pushing the commercial operation date from 2025 to 2026, resulting in an impairment.
The European liquid e-fuel market has developed more slowly than expected, leading Ørsted to strategically de-prioritise its efforts in this market and cease the development of FlagshipONE. The company will instead focus on renewable hydrogen development.
Operating profit (EBITDA) for the first half of the year reached DKK 14.1 billion, up from DKK 10.2 billion in the same period last year, with DKK 1.3 billion related to a net reversal of provisions for cancelled projects. Excluding new partnerships and cancellation fees, EBITDA in the first half of 2024 amounted to DKK 12.8 billion, reflecting an underlying increase of 25% compared to last year.
Earnings from Ørsted’s offshore sites amounted to DKK 11.3 billion, an increase of DKK 2.3 billion compared to the same period last year. This growth was driven by the ramp-up of generation at offshore wind farms Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, alongside higher wind speeds, inflation-indexed contract-for-difference prices, and green certificates.
Impairment losses negatively impacted the first half of 2024 by DKK -3.2 billion, largely due to the cessation of FlagshipONE (DKK -1.5 billion), the construction delay at Revolution Wind (DKK -2.1 billion), an updated fair value measurement of Ocean Wind seabeds (DKK -0.6 billion), and an increase in US long-term interest rates (DKK -1.0 billion across the US portfolio). However, previously booked impairment losses on Sunrise Wind were reversed (DKK 1.8 billion) after it was selected to negotiate an offshore renewable energy certificate agreement by New York State.
Ørsted maintains its full-year EBITDA guidance of DKK 23-26 billion, excluding earnings from new partnerships and cancellation fees. The company has lowered its gross investment guidance by DKK 4 billion to DKK 44-48 billion due to timing effects across its project portfolio.
