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.

• Operational portfolio delivered strong earnings; underlying Q3 EBITDA (excluding partnerships/cancellation fees) was DKK 4.4 billion, with reported Q3 EBITDA at DKK 9.5 billion.

• Commissioned 550 MW of new renewable capacity, bringing total installed to 18.2 GW; U.S. solar projects completed.

• Divested minority stake in four UK offshore assets to Brookfield for DKK 15.7 billion, supporting the farm down program.

• Shut down last coal-fueled power plant in Denmark, advancing toward nearly 99% renewable energy by 2025.

Financial highlights

• Reported EBITDA for first nine months: DKK 23.6 billion, up 22% year-over-year; adjusted EBITDA: DKK 17.2 billion, up 12%.

• Q3 total EBITDA (including cancellation fees): DKK 9.5 billion; net profit for Q3: DKK 5.2 billion, driven by reversal of Ocean Wind 1 cancellation fees.

• Net profit for 9M 2024 was DKK 6.1 billion, a DKK 26 billion improvement year-over-year, mainly due to prior year impairments.

• Net debt at Q3 end: DKK 62.8 billion; gross investments in Q3: DKK 9.8 billion; free cash flow was negative DKK 15.3 billion.

• Impairments totaled DKK 3.4 billion in 9M 2024, mainly from FlagshipONE and Revolution Wind, partly offset by a reversal on Sunrise Wind.

Outlook and guidance

• 2024 EBITDA guidance narrowed to DKK 24–26 billion (excluding partnerships/cancellation fees), reflecting strong 9M results.

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

• Proceeds from partnerships/divestments targeted at DKK 70–80 billion for 2024–2026, evenly split.

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

• Renewable share of energy generation at 97% for Q1 2024, up from 92% year-over-year.