Annual report for 2023 – strong underlying results and strategic progress in a challenging year


Ørsted A/S (Orsted)

Annual Report 2023 – strong underlying results and strategic progress during a challenging year

7.2.2024 08:06:17 CET | Ørsted A/S | Annual financial report

Today the Ørsted Board of Directors approved the annual report for 2023.

Operating profit (EBITDA) for the year amounted to DKK 18.7 billion. Excluding new partnerships and cancellation fees, EBITDA stood at DKK 24.0 billion, above our target of DKK 20-23 billion.

EBITDA from offshore sites more than doubled to DKK 20.2 billion in 2023 due to the ramp-up in production at Hornsea 2 and Greater Changhua 1 and 2a, and as the negative effects of hedging in 2022 did not repeat in 2023.

EBITDA in 2023 was impacted by a provision of DKK 9.6 billion for cancellation costs related to our decision to stop development of Ocean Wind 1. In addition, we recognized impairment losses of 26. 8 billion DKK in 2023. The majority of them (19.9 billion DKK) linked to Ocean Wind 1.

Net profit amounted to -20.2 billion Danish crowns and return on capital employed (ROCE) to -14%. Net profit and ROCE excluding depreciation and cancellation costs amounted to DKK 14.9 billion and 12.9%, respectively.

As part of our capital markets update announced earlier today, the Board of Directors has decided to suspend dividend payments for fiscal years 2023 to 2025. The goal is now to reinstate dividend payments. dividends.

In 2024, EBITDA excluding new partnership agreements and cancellation fees is expected to be DKK 23-26 billion, and gross investments are expected to be DKK 48-52 billion.

Mads Nipper, Group Chairman and CEO of Ørsted, said:
“Despite a year marked by strong underlying business progress, 2023 was a year marked by significant challenges for Ørsted. Our financial results are negatively affected by the writedowns we took on our offshore projects in the United States in the third quarter of 2023 and by the provision for cancellation costs linked to the cessation of development of the Ocean Wind 1 offshore project.

“We have thoroughly reviewed the events that led to our decision to cease development of our Ocean Wind 1 project and are implementing the lessons learned into our operating model to reduce risks associated with project development and execution . Despite near-term challenges, our momentum and underlying momentum were strong in 2023. We delivered strong operating results in 2023 with adjusted EBITDA slightly above our guidance and several important milestones achieved. Revenues from our offshore sites more than doubled compared to last year and, in 2023, we have advanced three large offshore wind projects with a total capacity of 4.5 GW to final investment decision, one each in the UK, US and Taiwan, respectively.

“Today we presented an updated business plan, including a strategic ambition of 35 to 38 GW of installed renewable capacity by 2030, based on a comprehensive portfolio review. We have revisited our portfolio to prioritize growth options with the highest potential for value creation and at the same time reduce risks in the development and execution of our projects. We remain optimistic about the future of the renewable energy sector and are confident that we can make a key contribution to accelerating the development of renewable energy in the years to come.

Key financial figures 2023:

Millions of Danish crowns

Q4 2023

Q4 2022

%

2023

2022

%

EBITDA

(686)

6,696

n / A

18,717

32,057

(42%)

– New partnerships

317

77

312%

4,324

10,993

(61%)

– Cancellation fees

(9,621)

0

n / A

(9,621)

0

n / A

– EBITDA excluding VAT from new partnerships and
cancellation fees

8,618

6,619

30 %

24,014

21,064

14%

Profit (loss) for the period

(284)

(329)

(14%)

(20,182)

14,996

n / A

Cash flow from operating activities

6,170

20,915

(70%)

28,532

11,924

139%

Gross investments

(13,039)

(9,826)

33%

(38,509)

(37,447)

3%

Investments

1,861

983

89%

1,542

25,636

(94%)

Free movement of capital

(5,008)

12,072

n / A

(8,435)

113

n / A

Net interest-bearing debt

47,379

30,571

55%

47,379

30,571

55%

FFO/adjusted net debt

28.6%

42.7%

(14%p)

28.6%

42.7%

(14%p)

ROCE

(14.2%)

16.8%

(31%p)

(14.2%)

16.8%

(31%p)

Presentation of annual results and update on the capital markets
Mads Nipper, Chief Executive Officer of the Ørsted Group, and Rasmus Errboe, Acting CFO of Ørsted, will present the annual results as well as an update on the capital markets on Wednesday, February 7 at 1:00 p.m. CET.

To join the live stream, please click here: Ørsted 2023 Annual Results and Capital Markets Update (getvisualtv.net)

Presentation slides will be available ahead of the Capital Markets Update on Investors | Ørsted (orsted.com)

press conference
Ørsted will host a telephone press briefing for journalists on Wednesday, February 7, 2024 at 09:00 CET to elaborate and answer questions on the Capital Markets Update and annual results for 2023.

Call numbers for the press briefing:

Denmark: +45 89 87 50 45
United Kingdom: +44 20 3936 2999
Access code: 421285

To participate in the press briefing, please register here: NetRoadshow

For more information, please contact:

Global Media Relations
Martin Barlebo
+45 99 55 95 52

Investor Relations
Rasmus Keglberg Haervig
+45 99 55 90 95
[email protected]

About Ørsted
Ørsted's vision is of a world running entirely on green energy. Ørsted develops, builds and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuel plants and bioenergy plants. Ørsted is recognized on the CDP Climate Change A List as a global leader in climate action and was the first energy company in the world to have its science-based net zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,900 people. Ørsted shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group's turnover amounted to DKK 79.3 billion (EUR 10.6 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram and

Attachments

  • Company Announcement_Annual Report 2023 – strong underlying results and strategic progress during a challenging year.pdf

  • Ørsted Annual Report 2023.pdf

  • Orsted-2023-12-31-fr.zip

Information source: Ritzau



Source link

Scroll to Top