The company reported Ebitda for the first half of DKK 13.044 billion (€1.75 billion), almost the same as for H1 2021 (DKK 13.059 billion). However, the Q2 Ebitda of DKK 3.615 billion was down from the roughly DKK 9.4 billion recorded for the previous quarter, which benefitted from higher power prices and stake sales in offshore wind farms.
H1 net profit came in at DKK 5.97 billion (€776 million), down 16% from 2021 (DKK 7.142 billion).
The company increased its Ebitda guidance (excluding new partnership agreements) by DKK 1.0 billion to DKK 20-22 billion, primarily due to higher earnings in its bioenergy business and onshore.
Shares were down 4.6% in early trading, according to Reuters, which reported that analysts had expected higher core earnings in the offshore wind business. However, Ørsted's CEO Mads Nipper said he was pleased with the first half of the year, pointing to significant milestones.
Hornsea 2
The company expects to complete commissioning at 1320MW Hornsea Project Two this month, it said in its investor report. All the turbines are commissioned and final reliability runs are being carried out. In contrast, at Greater Changhua in Taiwan Covid effects will delay commissioning of the last turbines until 2023.
The company saw a significant rise in wind generation in the second quarter.
Offshore, ramping up generation at Hornsea 2 and higher wind speeds resulted in a 32% increase in power generated, compared with the same quarter in 2021, although wind speeds of 7.8m/s remained below average for the period (8.7m/s). This helped offset delays in commissioning. Revenue from offshore wind farms increased by 42% in the quarter to DKK 4.8 billion, partly due to the increased production and partly due to higher prices being realised for merchant assets.
Onshore
Onshore generation in the quarter almost doubled, with major contributions from commissioning of the Western Trail, Haystack and Lincoln Land wind farms. The US assets benefitted from high power prices during the ramp-up phase, before power purchase agreements (PPAs) take effect, and from PPAs where Ørsted gains from capturing extra revenue.
Acquisition
Since its financial close, Orsted has agreed to acquire the German and French onshore wind platform Ostwind for €689 million. The acquisition brings Ørsted 152MW in operation and under construction, 526MW of advanced development projects (for completion by 2026) and approximately a further 1GW development pipeline. The acquisition is due to complete in H2 2022.
.png)
.png)
