September 26 (Renewables Now) - Ørsted A/S (CPH:ORSTED) on Wednesday lifted its EBITDA guidance for 2019 by DKK 500 million (USD 73.3m/EUR 67m) after reversing a financial provision related to legal proceedings against its predecessor Elsam and thanks to favourable wind conditions in August.
The Danish energy major now expects to record earnings before interest, tax, depreciation and amortisation (EBITDA) of between DKK 16 billion and DKK 17 billion, as compared to DKK 15.5 billion-16.5 billion previously. The increased outlook comes after the resolution of a legal case related to Danish electrical power producer Elsam, which became part of Ørsted, then Dong Energy, in 2005.
The firm was accused of breaching Danish competition rules by taking advantage of its dominant position on the wholesale electricity market in Western Denmark in the period between January 1, 2005, to June 30, 2006. Simultaneously, it was involved in a similar case for a previous period -- the second half of 2003 and the whole of 2004. After the competition council confirmed Elsam’s abuse, the proceedings were later moved to the Copenhagen Maritime and Commercial Court but were stayed until a resolution for the more recent case are issued. This case was subsequently dismissed, with Elsam being awarded DKK 1.5 million in costs only.
Concerning the January 2005-December 2006 period, Elsam’s abuse was confirmed by the Danish Competition Council, with the decision being upheld by the Danish Competition Appeals Tribunal. The case was brought before the Copenhagen Maritime and Commercial Court and then the High Court, which acquitted Ørsted and dismissed the claims.
The Danish energy group had set aside some DKK 298 million, plus litigation interest, to cover damages related to the two cases, as well as a case for damages initiated by Danish plaintiffs headed by Danish energy trading company Energi Danmark.
Both cases between Elsam and the competition authorities are now closed, Ørsted said.
(DKK 1.0 = USD 0.147/EUR 0.134)