Danish clean energy group Ørsted A/S (CPH:ORSTED) on Wednesday reported EBITDA of DKK 16 billion (USD 2.5bn/EUR 2.2bn) for the first nine months of 2021, up 22% year-over-year.
Excluding a DKK-5.3-billion gain from the sale of a 50% stake in the 752-MW Borssele 1 & 2 offshore wind farm, however, earnings before interest, tax, depreciation and amortisation (EBITDA) showed a decline of DKK 2.4 billion.
Earnings from wind and solar assets in operation fell by DKK 1.3 billion to DKK 10.3 billion as the ramp-up of new generation could not offset the impact of lower wind speeds that persisted in most of the third quarter.
Ørsted estimates the negative effect from lower wind speeds in the nine-month period at DKK 2.5 billion compared to the first nine months of 2020 and at DKK 1.7 billion compared to a normal wind year.
Despite the slower winds, the company said it is on track to meet its full-year guidance, buoyed by a strong performance by its combined heat and power (CHP) plants and high earnings from its gas business.
As a result of its strategy to hedge prices, market prices had a limited impact on Ørsted’s earnings in the third quarter.
“We are very pleased that our robust business model and active approach to risk management, together with strong earnings in ‘Bioenergy & Other’ resulted in good financial results in the third quarter despite low wind speeds and unusual market conditions,” chief executive Mads Nipper summarised the company’s performance.
Some financial figures are in the table below:
| Figures in DKK million |
Q3 2021 |
Q3 2020 |
9-mo 2021 |
9-mo 2020 |
| EBITDA |
2,984 |
3,360 |
16,043 |
13,121 |
| Profit (loss) for the period |
487 |
12,034 |
7,629 |
14,527 |
| Cash flows from operating activities |
246 |
1,941 |
11,480 |
9,710 |
| Gross investments |
(8,757) |
(9,263) |
(27,555) |
(18,328) |
Ørsted reiterated it expects full-year EBITDA to be at the low end of its guided range of DKK 15 billion-16 billion, which excludes new partnerships. The projection assumes normal wind speeds by the end of the year. It also confirmed its full-year gross investment guidance of DKK 39 billion-41 billion.
The company aims to achieve 50 GW of installed renewable energy capacity by 2030, 30 GW of which offshore.
(DKK 1 = USD 0.156/EUR 0.134)
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The Borssele I&II offshore wind farm. Image by Ørsted (www.orsted.com)
