As a consequence of opposed impacts relating to produce chain delays, elevated rates of interest, and the dearth of an Offshore Wind Renewable Power Credit score (OREC) on Dawn Wind, Ørsted has recognised impairment losses of DKK 28.4 billion (about EUR 3.8 billion) within the first 9 months of 2023.
The vast majority of impairment losses, DKK 19.9 billion, relate to the Ørsted’s Ocean Wind 1 offshore wind mission. The corporate unveiled it ceased the event of the 1.1 GW Ocean Wind 1 and the 1,148 MW Ocean Wind 2 tasks offshore New Jersey.
Web revenue amounted to DKK -19.9 billion, and return on capital employed (ROCE) got here in at -14 per cent. Web revenue and ROCE excluding impairment losses amounted to DKK 8.5 billion and 13 per cent, respectively, stated the Danish renewable power developer.
“The present market state of affairs with provide chain challenges, mission delays, and rising rates of interest has challenged our offshore tasks within the US, and particularly our offshore mission Ocean Wind 1, which has led to important impairments in Q3 2023,” stated Mads Nipper, Group President and CEO of Ørsted.
“Subsequently, as a part of our ongoing overview of our US offshore wind portfolio, we’ve determined to stop the event of Ocean Wind 1 and Ocean Wind 2. On the identical time, we’ve taken last funding choice on the 704 MW Revolution Wind mission, progressing it to the development section with a gorgeous forward-looking worth creation.”
In August, Ørsted stated it might e-book impairments of DKK 16 billion (EUR 2.15 billion) on its US portfolio resulting from opposed impacts regarding the availability chain, lack of favorable progress in Funding Tax Credit score (ITC) steering, and elevated rates of interest.
Working revenue (EBITDA) for the primary 9 months amounted to DKK 19.4 billion and, excluding new partnerships, EBITDA amounted to DKK 15.4 billion, DKK 1.0 billion increased than in the identical interval final 12 months, in response to the corporate.
Earnings from offshore websites amounted to DKK 13.0 billion, which was DKK 6.8 billion increased than in the identical interval final 12 months, and had been positively affected by ramp-up at Hornsea Two and Larger Changhua 1 and 2a and the detrimental impression from hedges in 2022 not being repeated, Ørsted stated.
The corporate’s beforehand guided EBITDA for 2023, excluding new partnership agreements, of DKK 20-23 billion is alleged to stay unchanged when excluding a provision of roughly DKK 8-11 billion associated to potential cancellation charges following Ørsted’s choice to stop the event of Ocean Wind 1.
As a consequence of a later timing throughout its mission portfolio and the termination of investments on Ocean Wind 1, the corporate’s gross funding for 2023 is now anticipated to quantity to DKK 40-44 billion, a discount of DKK 4 billion.
“We’re happy with the efficiency of our working belongings within the first 9 months of 2023, which drives a passable improvement in our earnings. Our working revenue (EBITDA) excluding new partnerships elevated by DKK 1 billion in comparison with the identical interval final 12 months, and earnings from our offshore websites have greater than doubled in comparison with final 12 months,” stated Mads Nipper.
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