Ørsted (ORSTED) Q3 2024 earnings summary

Executive summary

• Achieved significant milestones in Q3 2024, including 3.5 GW UK CFD awards, favorable Ocean Wind 1 contract settlements, and a new partnership agreement.

• Commissioned 550 MW of renewable capacity, increasing total installed renewable capacity to 18.2 GW.

• Divested a minority stake in four UK offshore wind farms to Brookfield for DKK 15.7 billion.

• Shut down the last coal-fueled power plant in Denmark, advancing the goal of fossil-free energy generation by 2025.

• Progressed on US projects, facing construction challenges and impairments, especially at Revolution Wind.

Financial highlights

• Q3 2024 reported EBITDA was DKK 9.5 billion; underlying EBITDA (excluding new partnerships and cancellation fees) was DKK 4.4 billion.

• EBITDA for the first nine months of 2024 rose 22% year-over-year to DKK 23.6 billion; adjusted EBITDA up 12% to DKK 17.2 billion.

• Net profit for Q3 was DKK 5.2 billion, driven by reversal of Ocean Wind 1 cancellation fees; net profit for 9M 2024 was DKK 6.1 billion.

• Impairments totaled DKK 3.4 billion in 9M 2024, mainly from FlagshipONE and Revolution Wind.

• Net interest-bearing debt at quarter-end was DKK 62.8 billion.

Outlook and guidance

• 2024 EBITDA guidance narrowed to DKK 24–26 billion, excluding new partnerships and cancellation fees.

• Gross investments for 2024 expected at DKK 36–40 billion, down DKK 8 billion from prior guidance due to project timing.

• No dividend payout for 2023–2025; target to reinstate dividend for 2026.

• Renewable share of energy generation reached 97% YTD.

• Bioenergy & Other earnings expected to be lower due to slow Tyra ramp-up and less favorable gas/storage developments.