Ørsted affirms 2020 forecast in COVID-19 update

Source: Ørsted (orsted.co.uk)

March 25 (Renewables Now) - Ørsted A/S (CPH:ORSTED) today confirmed its 2020 financial forecast and said it has a strong liquidity position to steer through the COVID-19 crisis and the increased global market uncertainty.

The Danish pure-play renewables company currently has more than DKK 30 billion (USD 4.35bn/EUR 4.02bn) in available reserves, giving it confidence it can support its business and construction initiatives through 2020 and 2021 without further funding. In an update regarding the coronavirus pandemic, it said its business is stable, both in operational and financial aspects, but highlighted some risks that the unfolding crisis could bring.

A major challenge could be to keep some wind farms operational as the imposed travel restrictions and quarantine measures could harm the work of internationally-staffed service operation vessels. So far, no impact on the availability wind farms has been identified.

Those same restrictions may also put a hazard on the delivery of critical components for under-construction sites, protract the permitting schedules for projects under development and cause delays in the approval of already signed divestments.

Ørsted sees only a limited risk of being materially impacted by the falling gas and power rates and said all of its assets are currently fully operational, while the company manages to fulfil its heating and electricity supply obligations. Its construction projects, meanwhile, are so far progressing as planned.

Another update related to the COVID-19 effects will be provided in the company’s first-quarter financial report on April 29, 2020, if not sooner, Ørsted said.

(DKK 1.0 = USD 0.145/EUR 0.134)

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