Orsted has reported a 313% increase in operating profit in the third quarter of 2022, prompting the Danish offshore wind giant to increase its full-year guidance.
Third quarter operating profit was Dkr12.3bn (€1.6bn) this year, compared to Dkr2.9bn in the same period in 2021.
Operating profit for the first nine months of 2022 reached Dkr25bn (€3bn), compared to Dkr16bn in the same period last year.
Of the Dkr25bn, Dkr10.9bn related to the 50% farm-downs of Hornsea 2 and Borkum Riffgrund 3.
The Danish renewables developer has increased its full-year EBITDA guidance with Dkr1bn to Dkr21-23bn, excluding earnings from new partnerships during the year (excluding the gains from the 50% farm-downs of Borkum Riffgrund 3 and Hornsea 2).
The increase is primarily due to higher earnings from Orsted’s CHP plants.
Orsted has lowered its gross investments guidance by Dkr5bn to Dkr38-42bn, mainly due to timing effects on projects, with lower spend in 2022 than originally planned.
Mads Nipper, Group President and CEO of Orsted, said: “Despite the highly unusual and volatile period with war, high inflation, and increasing interest rates Ørsted has continued the build-out of renewable energy and the delivery of power and heat to our communities.
“Most of the power delivered was under fixed-price agreements or hedged.
“In these unprecedented times, I am very pleased that we have been able to increase our EBITDA guidance to Dkr21-23bn for the year.”
“We reached several strategic milestones in the build-out of renewable energy during the quarter, including the acquisition of Ostwind, which expands our European onshore portfolio into Germany and France with more than 1.5GW of development pipeline projects, and a pioneering partnership with Copenhagen Infrastructure Partners (CIP) with the aim to develop approximately 5.2GW of offshore wind in Denmark.
“I am also proud that we just entered into a new five-year global partnership with WWF to unite action on climate and ocean biodiversity.
“The partnership aims to drive a fundamental change in the approach to integrating action on climate and biodiversity by advancing offshore wind that strives to achieve a net-positive biodiversity impact.”