Orsted’s operating profit (EBITDA) excluding new partnerships and cancellation fees for the first quarter of this year increased compared with the same period of 2023.
The company reported Dkr7.5bn (€1bn) in EBITDA (excluding new partnerships and cancellation fees), compared with Dkr6.9bn in 2023.
The result was driven by an 18% increase in Orsted’s offshore site earnings, in line with expectations, and the company has reiterated its full-year EBITDA guidance.
Earnings from Orsted’s offshore sites amounted to Dkr6.9bn, Dkr1.1bn higher than in the same period last year.
The increase was due to higher wind, ramp-up of Greater Changhua 1 and 2a and South Fork, and higher prices on the inflation-indexed CfDs and green certificates.
This was partly offset by reduced capacity in the export transmission cables at Hornsea 1 due to an issue with the electrical infrastructure, which is being resolved during the second quarter.
Net profit amounted to Dkr2.6bn, which was below the same period last year.
While net profit was positively impacted by higher EBITDA and an impairment reversal on the Sunrise Wind project, tax expenses were affected by the recognition of a deferred tax liability related to an initial tax equity contribution for Orsted’s US onshore project, Eleven Mile.
Group President and chief executive Mads Nipper said: “During this quarter, we have been constructing 7.6GW of offshore wind across our regions, and we have reached significant milestones by finalising the construction of Greater Changhua 1 and 2a in Taiwan and South Fork in the US.
“Both wind farms are expected to reach final commissioning during second quarter.
“We remain focused on project execution and on de-risking the continued supply chain challenges in the industry.
“As part of our partnership and divestment programme, we have executed on two milestones.
“In the US, we have divested a share of four onshore wind farms with a total capacity of 957MW to Stonepeak, and in Europe, we’ve taken the strategic decision to prioritise other markets for onshore renewables, and consequently, we’ve signed an agreement with ENGIE under which they will acquire our onshore wind and solar assets in France.”