Orsted has reported its “highest ever” operating profit (EBITDA) for the year in 2022, partly thanks to gains from the 50% farm downs of the Hornsea 2 and Borkum Riffgrund 3 projects.
The Danish developer achieved an EBITDA Dkr32.1bn (€4.3bn), up from Dkr25bn in the year-ago period, with the farm downs contributing Dkr11bn in total.
EBITDA excluding new partnership agreements amounted to Dkr21.1bn, an increase of Dkr5.3bn compared to 2021.
Orsted said it benefitted from its diverse portfolio and achieved significantly higher earnings from onshore wind and solar PV, combined heat and power plants, and gas activities than expected at the beginning of the year, while earnings in offshore decreased.
This was primarily due to adverse impacts from hedges and delays at its Hornsea 2 and Greater Changhua 1 & 2a construction projects, Orsted said.
Net profit amounted to DKK 15bn, and return on capital employed (ROCE) came in at 17%.
In 2023, EBITDA excluding new partnership agreements is expected to be DKK 20-23bn, and gross investments are expected to be DKK 50-54bn.
Orsted group president and chief executive Mads Nipper (pictured) 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 operating profit for 2022.
“We achieved strong operational performance with our assets remaining fully operational and having robust availability rates.
“Our CHP plants supported the much-needed security of supply in Denmark.
“Furthermore, we achieved significant strategic results across our business, and we remain confident in our long-term financial estimates and growth ambitions.
“The world is facing a climate crisis, and it’s indisputable that a transition to a sustainable energy system is needed.
“We’re ready to be part of this much-needed renewable energy build-out.”