Ørsted’s 2020 Op Profit Grows

Strong results for 2020, both operationally and financially, reaffirmed its recently updated 2021 earnings guidance as its operations remained “stable” during the pandemic, and said wind conditions are the most significant uncertainty for its operating profit. 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. The Danish company brought online five onshore and offshore wind parks, among which is the 752-MW Borssele 1 & 2 complex in Dutch waters. The year also marked the divestment of its power distribution, residential customer and city light businesses as part of its transformation into a global renewable energy company.

Danish pure-play renewables company closed 2020 with earnings before interest, tax, depreciation and amortization (EBITDA) of DKK 18.12 billion (USD 2.93bn/EUR 2.44bn), up 4% in annual terms and exceeding its forecast of DKK 16 billion-17 billion. The increase mirrors a 14% rise in earnings from offshore and onshore wind farms in operation thanks to the commissioning of the Hornsea 1, Borssele 1 & 2, Plum Creek and Willow Creek wind farms, as well as the start of receiving Contract for Difference (CfD) payments for a 400-MW portion of the Hornsea 1 project off the Yorkshire coast. Higher wind speeds also contributed to the improvement, which was partly offset by lower earnings from trading and the adverse effects caused by the pandemic. Ørsted reiterated its guidance for 2021 EBITDA of between DKK 15 billion and DKK 16 billion and said it expects its gross investments to stand at DKK 32 billion-34 billion. It also added it is fully on track to lower its greenhouse gas emissions and become a carbon-neutral company in 2025.

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