Orsted operating profit soared 94% in the first three months of 2022, compared with the same period last year, boosted by the 50% farm-down of Borkum Riffgrund 3.
The Danish energy giant said EBITDA in the first quarter of the year totalled Dkr9.4bn (€1.3bn), an increase of Dkr4.6bn on Q1 2021.
The gain from the sale of the stake in Borkum Riffgrund 3 amounted to Dkr1.6bn, Orsted said.
EBITDA excluding new partnerships amounted to Dkr7.8bn, Dkr3.0bn higher than in the same period last year.
Net profit amounted to Dkr5.7bn, up from Dkr1.60bn in 2021 and return on capital employed (ROCE) came in at 19%.
Orsted reiterated its full-year EBITDA guidance of Dkr19-21bn.
The EBITDA guidance does not include earnings from new partnerships during the year, which means that the gain from the Borkum Riffgrund 3 farm-down in Q1 2021 and the farm-down of Hornsea 2, expectedly during the second half of 2022, is excluded from our full-year guidance.
The company also reiterated its full-year gross investment guidance of Dkr38-42bn.
Orsted group president and chief executive Mads Nipper (pictured) said: “I’m very pleased with our start to the year. We managed to achieve strong operational and financial results and continued strategic progress in the first quarter of 2022.
“We reported an EBITDA of Dkr9.4bn, almost doubled compared to the same period last year.
“The continued very high power prices had a significant opposite impact on our financial performance in our offshore and bioenergy businesses.
“In offshore, we had a negative impact due to later than expected commissioning of turbines at Hornsea 2, which led us to being overhedged.
“In contrast, we fully benefited from the high power prices on our power generation at our CHP plants. At Group level, these effects to a large degree offset each other during the quarter.
“We remain deeply concerned about the Russian aggression against Ukraine.
“We are taking every step possible to stop our cooperation with Russian companies, including ceasing all sourcing of biomass and coal for our power stations.
“Orsted rejects the claim from Gazprom Export to pay in roubles for the gas delivered. Gas is not a core business for Orsted, and we are not entering into new long-term contracts or extending our current contracts.
“If we make a net profit from the Gazprom Export contract in 2022 it will be donated to humanitarian aid in Ukraine.
“We welcome the EU’s focus to stop its dependence on Russian oil and gas and speed up the green transformation of EU’s energy sector, and we are ready to help drive the accelerated green build-out.”