Orsted reported a robust surge in its first-quarter operating profit (EBITDA), excluding new partnerships and cancellation fees, compared to the same period last year.
The company announced a noteworthy increase in EBITDA to Dkr7.5 billion (€1 billion), up from Dkr6.9 billion in 2023. This growth was primarily fueled by an 18% rise in earnings from Orsted's offshore sites, reaching Dkr6.9 billion, marking a significant stride from the previous year.
Mads Nipper, Group President and chief executive of Orsted, highlighted the pivotal achievements during the quarter, stating, “During this quarter, we have been constructing 7.6GW of offshore wind across our regions, and we have reached significant milestones by finalising the construction of Greater Changhua 1 and 2a in Taiwan and South Fork in the US.”
The surge in earnings from offshore sites was attributed to several factors, including increased wind production, the ramp-up of key projects such as Greater Changhua 1 and 2a and South Fork, and higher prices on inflation-indexed Contracts for Difference (CfDs) and green certificates.
However, the positive momentum was tempered by challenges, notably a reduction in capacity in the export transmission cables at Hornsea 1 due to an issue with electrical infrastructure. Orsted reassured stakeholders that this issue is being addressed and resolved during the second quarter.
Despite the impressive EBITDA growth, Orsted reported a net profit of Dkr2.6 billion, which fell below the figures for the same period last year. This dip was attributed to various factors, including tax expenses impacted by the recognition of a deferred tax liability related to an initial tax equity contribution for Orsted's US onshore project, Eleven Mile.
Nipper emphasized the company's commitment to project execution and addressing supply chain challenges in the industry. He also highlighted strategic moves in partnerships and divestments, including the divestment of a share of four onshore wind farms in the US to Stonepeak and a strategic decision to prioritize other markets for onshore renewables in Europe, resulting in an agreement with ENGIE for the acquisition of Orsted's onshore wind and solar assets in France.
