Orsted has reported an operating profit (EBITDA) amounted to DKK18.1bn (€2.43bn) in 2020, a 4 % increase on last year and above its target of DKK16-17bn (€2.15bn – 2.29bn).
Earnings from offshore and onshore wind farms in operation increased by 14 % to DKK16.9bn (€2.27bn), driven by the ramp-up of power generation from Hornsea 1, Borssele 1 & 2, Lockett, Sage Draw, Plum Creek, and Willow Creek.
In addition, year-on-year development was positively impacted by the receipt of CfDs of another 400MW of Hornsea 1 from April, and higher wind speeds.
This was partly offset by adverse COVID-19 impacts on especially the UK power market and lower earnings from trading activities.
During the report period, Orsted closed the divestment of its Danish power distribution, residential customer, and city light businesses.
The transaction resulted in proceeds of DKK20.5bn (€2.76bn)and a gain of DKK10.9bn (€1.47bn) which will be deployed into our global renewable energy build-out plan.
Net profit amounted to DKK 16.7bn (€2.25bn), and return on capital employed (ROCE) came in at 10 %, in line with Orsted’s target.
Its green share of heat and power generation continued to increase and reached an all-time high of 90 % in 2020, driven by continued ramp-up of our offshore and onshore wind farms.
As a result, the directors recommended a dividend of DKK11.5 (€1.55) per share (DKK4.8bn [€0.65bn] in total), up 9.5 % and in line with its dividend policy.
Orsted group president and chief executive Mads Nipper said: “Orsted delivered a strong set of results in 2020, both operationally and financially.
“Despite the challenges posed by COVID-19, our colleagues have done an outstanding job to keep our energy production assets fully operational at normal availability rates.
“During 2020, we’ve also commissioned five new wind farms and managed to move our construction projects forward.
“This demonstrates the resilience of our business model and the skills and spirit of our people.
“Safety continues to remain our key priority, and we continue to do our utmost to keep our colleagues safe across our locations.
“In January 2021, we were named the world’s most sustainable energy company for the third consecutive year, and our focus on sustainability remains stronger than ever.
“We are fully on track with our plan to reduce our greenhouse gas emissions to become carbon-neutral as a company in 2025.
Excluding new partnership agreements, Orsted expects EBITDA to be DKK 15-16bn (€2.02-2.15bn) in 2021.
Gross investments for 2021 are expected to amount to DKK32-34bn (€4.30-4.57bn), reflecting a high level of construction activity related to offshore wind, onshore wind, and solar PV projects.