Ørsted (ORSTED) Investor Update summary

Financial performance and guidance

• 2024 EBITDA excluding new partnership agreements and cancellation fees is expected at DKK 24.8 billion, matching guidance, driven by stable operational earnings from offshore and onshore assets.

• No update provided on 2026 EBITDA target; further details to be shared with full-year results.

Impairments and project challenges

• Aggregate impairments of DKK 12.1 billion in Q4 2024 stem from US interest rate hikes, seabed lease revaluations, and Sunrise Wind execution issues.

• US interest rate increases led to a 75-basis-point rise in WACC, causing a DKK 4.3 billion impairment for the US portfolio.

• Seabed lease impairments off New Jersey, Maryland, and Delaware total DKK 3.5 billion, reflecting market uncertainties and now immaterial on the balance sheet.

• Sunrise Wind project delays and cost overruns resulted in a DKK 4.3 billion impairment and commissioning pushed to H2 2027, with challenges including supply chain, vessel, and installation issues.

Project execution and risk management

• Installation delays at Sunrise Wind stem from less efficient feeder barge solutions and learnings from Revolution Wind's winter construction.

• Majority of the DKK 4.3 billion impairment is cash-effective and will impact CapEx over 2025–2027, with most costs in the latter years.

• All necessary vessel charters and federal permits for Sunrise and Revolution Wind are secured, mitigating risk of further major delays.

• Project remains profitable with a mid-single-digit life cycle IRR, even if ITC bonus adders are lost, and cancellation is not under consideration.

• Project will supply power to nearly 600,000 homes and create hundreds of long-term US jobs.