Orsted’s operating profit (EBITDA) for the first quarter of 2021 was just under Dkr5bn (€659m), compared with nearly Dkr7bn in the same period last year.
The Dkr1.9bn decrease to Dkr4.9bn – a fall of 28% – was mainly due to high earnings from the construction agreement related to the Hornsea 1 transmission assets in the first quarter of 2020 not being repeated in the first quarter of this year.
Other factors included very strong wind speeds in the first quarter of last year and the divested distribution, residential customer, and city light businesses last year.
Orsted said the first quarter of this year was also impacted by a Dkr800m warranty provision related to cable protection system issues at some of its offshore wind farms.
The operational performance of the group was good during the first quarter of 2021, slightly exceeding Orsted’s expectations.
“Our availability rates have been solid, we have seen higher than expected performance from our CHP plants, and we have achieved additional earnings from finalised construction projects,” the company stated.
Earnings from Orsted’s offshore and onshore wind farms in operation were in line with the same period last year.
More wind farms in operation were offset by significantly lower wind speeds across the offshore portfolio.
The company is maintaining its full-year EBITDA guidance of Dkr15-16bn.
Orsted also reiterated its current full-year gross investment expectation of Dkr32-34bn and once the Brookfield Renewable Ireland acquisition closes, the purchase price will be added to the current guidance.
Net profit for the first quarter amounted to Dkr1.6bn and return on capital employed (ROCE) came in at 7.5 %.
Orsted chief executive Mads Nipper said, in the interim report for the first quarter of 2021: “Orsted’s operational performance was good during Q1 2021 and slightly exceeded our expectations, and we’ve reached multiple strategic milestones.
“In our Offshore business, the Polish Baltica 2 & 3 projects with a total capacity of up to 2.5 GW were awarded contracts for difference and we’ve entered a new partnership in the Baltic States.
“We also signed an agreement to farm down 50 % of Borssele 1 & 2. In our Onshore business, we’ve made a strategic acquisition in Ireland and the UK, which provides us with a platform for future growth in the European onshore renewables market.
“We’re looking forward to presenting an update of our strategy and long-term targets at our Capital Markets Day on 2 June.”