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August 13, 2021

Ørsted reports increase in second-half operating profit

Ørsted estimates that its profits for this year are likely to come in at the low end of its guided range.

By Umesh Ellichipuram

Danish energy company Ørsted has reported an operating profit of kr13.1bn ($2.07bn) in the first half of the year, a kr3.3bn ($521m) increase from the same period of last year.

The company’s earnings from operational offshore and onshore wind farms stood at kr0.3bn ($47.4m), lower than in the prior-year period.

Earnings from existing partnerships also witnessed a kr1.8bn ($284m) decrease against the first half of last year.

Ørsted said that its Bioenergy and Other business unit achieved earnings in line with the same period of last year due to good performance by the company’s combined heat and power (CHP) plants and higher earnings from its gas business.

The company’s net profit stood at kr7.1bn ($1.12bn), while its return on capital employed (ROCE) came in at 12.5%.

Ørsted has increased its full-year gross investment guidance to between kr39bn ($6.1bn) and kr41bn ($6.4bn).

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This updated guidance takes into account Ørsted’s completion of the Brookfield Renewable Ireland growth platform in June, as well as its expected acquisition of the Lincoln Land onshore wind project in the US later this year.

Ørsted Group president and CEO Mads Nipper said: “In the first half of [this year], we’ve delivered good operational performance while reaching multiple significant milestones and engaging in a range of strategic partnerships.

“Within our Offshore business, Ocean Wind II was awarded a 1,148MW contract in New Jersey, fully utilising our Ocean Wind lease area.

“Our total awarded US portfolio now exceeds 4GW. We also entered into several new strategic partnerships in Norway, Korea, Scotland and Japan.

“In our Onshore business, we commissioned our combined solar [photovoltaic] and storage facility, Permian Energy Centre, and our biggest onshore wind farm [to date], Western Trail, both located in Texas.”

In June, Ørsted announced plans to invest kr350bn ($57bn) in renewable energy by 2027.

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