Ørsted's prelim 2022 EBITDA excl partnerships meet guidance

Danish clean energy group Ørsted A/S (CPH:ORSTED) said on Thursday it expects to book EBITDA excluding earnings from new partnerships of DKK 21.1 billion (USD 3.08bn/EUR 2.84bn) in 2022, in line with its latest guidance and higher than its initial expectations for the year.

Citing preliminary and unaudited figures, the offshore wind major estimates that earnings before interest, tax, depreciation and amortisation (EBITDA) excluding new partnerships will be DKK 5.3 billion more than in 2021. The year-on-year growth comes on the back of considerably higher earnings from onshore wind and solar activities, as well as the contribution from the heat and power and gas businesses. Nevertheless, the company suffered an unexpected drop in offshore wind, mainly resulting from adverse impacts from hedges and construction delays.

EBITDA including new partnership agreements is seen at DKK 32.1 billion, which will be a record result, fuelled by the 50% farm-downs of Hornsea 2 and Borkum Riffgrund 3 offshore wind projects.

Ørsted noted it will book an impairment of DKK 2.5 billion on its 50% partnership in the Sunrise Wind project in US waters due to the unprecedented inflation, rising interest rates and increased project capex.

“The composition and development of our earnings mix was significantly different than expected and once again showed the benefits from having a diverse portfolio,” said CEO Mads Nipper.

In 2023, Ørsted expects to achieve EBITDA excluding new partnership agreements of between DKK 20 billion and DKK 23 billion.

(DKK 1.0 = USD 0.146/EUR 0.134)

Choose your newsletter by Renewables Now. Join for free!