Ørsted raises 2022 EBITDA guidance by EUR 134m

In the first half of 2022, Danish clean energy group Ørsted A/S (CPH:ORSTED) generated an operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), of DKK 13 billion (USD 1.79bn/EUR 1.75bn), which is on par with the year-ago figure.

Excluding new partnerships, EBITDA rose 48% to DKK 11.4 billion, the company’s report showed today.

Ørsted increased its guidance for full-year EBITDA excluding farm-down gains by DKK 1 billion to a range of DKK 20 billion-22 billion, prompted by higher earnings in the Bioenergy & Other and Onshore segments.

In the first half of the year, earnings from the company’s wind and solar assets in operation increased somewhat to DKK 8 billion on the ramp-up of generation from new assets and higher wind speeds, which was partly offset by overhedging and ineffective hedges due to later than expected commissioning of Hornsea 2. The combined heat and power (CHP) plants continued to show strong results amid high power prices.

First-half revenue grew 85% to DKK 60.1 billion mainly as a result of substantially increased gas and power prices across all markets. Power generation from offshore and onshore assets was up 39% to 14.8 TWh.

Some figures from the company's interim report:

Ørsted’s head Mads Nipper expressed satisfaction with the first half of the year. In addition to the increased full-year EBITDA guidance, he highlighted the award of a contract for difference (CfD) for the 2,852-MW Hornsea 3 offshore wind farm in the UK and said the company is well on track to achieve its target of 30 GW offshore wind by 2030.

The CEO also highlighted the expansion of the Onshore business, including an entry into the Spanish market and the deal to acquire Ostwind, an onshore wind developer in Germany and France.

“Both the EU and the US have presented very ambitious plans to accelerate the build-out of renewable energy, which ensures a strong platform for continued growth within the development of renewable energy,” Nipper further said.

Ørsted also increased its 2022 gross investment guidance by DKK 5 billion to DKK 43 billion-47 billion to account for the expected closing of the Ostwind purchase.

(DKK 1 = USD 0.138/EUR 0.134)

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