Ørsted raises expectations for 2020

Ørsted has increased its full-year earnings guidance by DKK 1 billion (€130 million) as it gets closer to selling the transmission assets for its 1.2GW Hornsea One offshore wind farm.

by Craig Richard 4 March 2020

Ørsted confirmed the 1,218MW Hornsea One as fully operational earlier this year

It now expects Ebitda — excluding earnings from new partnerships — to be DKK 16-17 billion in 2020.

Having confirmed 1218MW Hornsea Project One as fully operational in January, the developer has made “further progress” in fulfilling its regulatory obligation to sell the project’s transmission assets, it explained.

Under the UK’s offshore transmission owner (OFTO) regime, offshore wind developers design and install the transmission links to connect their projects to shore, before energy regulator Ofgem auctions off the connection to a special transmission operator.

The preferred bidder for the connection is expected to need a lower return on the investment than previously assumed,Ørsted added.

This means the developer will pay lower than assumed tariffs, boosting the net present value of its share of the asset, Ørsted,which owns a 50% stake in project off the east coast of England,explained.

Global Infrastructure Partners owns the other 50% share.