Orsted has released its operating profits for 2022, predicting a company record for its EBITDA.
The EBITDA results, based on preliminary and unaudited reporting and excluding new partnership agreements, amounted to 21.1bn krone (€2.8bn) for 2022. This marked an increase of 5.3bn (€711m) krone (compared to 2021.
Including new partnership agreements, Orsted expects its EBITDA results to total 32.1bn krone (€4.3bn) in 2022, its highest EBITDA to date.
The company said that this was above its initial expectations for the year.
Orsted noted that the gain from its 50% farm-downs of Hornsea 2 and Borkum Riffgrund 3 accounted for 11bn krone (€1.5bn) of the total.
It added that it achieved higher earnings from its onshore wind and solar PV business, while earnings in offshore decreased. This was primarily due to adverse impacts from hedges, and delays at the company’s Hornsea 2 and Greater Changhua 1 & 2a construction projects.
The company provided an EBITDA guidance for 2023 of 20-23bn krone.
Mads Nipper, Group President and CEO of Orsted, said: “In a year with unusual market conditions, not least the very volatile energy prices and a substantial increase in inflation, we’re happy to achieve a record-high EBITDA for 2022 within our latest guidance and above our initial expectations for the year.
“The composition and development of our earnings mix was significantly different than expected and once again showed the benefits from having a diverse portfolio.
“We expect that earnings from our operational renewable energy assets will increase significantly in 2023 and contribute to reaching a group EBITDA excluding new partnerships of 20-23bn krone, and we remain confident in our long-term financial estimates and growth ambitions.”