Eurowind, Wind Estate set up EUR-400m wind JV in Denmark
Sep 18, 2024 11:01 CESTDanish energy group Ørsted A/S (CPH:ORSTED) on Thursday reported a net loss of DKK 1.7 billion (USD 251m/EUR 228m) for the second quarter of 2024 as it booked DKK 3.9 billion in impairment losses mainly related to a decision to stop the FlagshipONE e-fuel project in Sweden and a delay at the Revolution Wind offshore wind project in the US.
The commercial operation date of Revolution Wind will be pushed from 2025 into 2026 due to construction delay of the onshore substation, as permitting and site preparation on the military landfill site where it is located have proven more challenging than expected.
“The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE,” said chief executive Mads Nipper.
“We will continue our focus and development efforts within renewable hydrogen, which is essential for decarbonising key industries in Europe and closer to our core business,” the CEO added.
The company otherwise said its operations are performing well, with increased earnings from its offshore wind farms.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half year came in at DKK 14.1 billion, up from DKK 10.2 billion a year ago, of which DKK 1.3 billion related to a net reversal of cancellation fees, mainly Ocean Wind 1.
Earnings from the company’s offshore sites increased by DKK 2.3 billion to DKK 11.3 billion on ramp-up of generation, higher wind speeds, higher prices on the inflation-indexed contracts for difference (CfDs), and green certificates.
DKK million | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
EBITDA | 6,570 | 3,320 | 14,058 | 10,230 |
EBITDA excl. new partnerships and cancellation fees | 5,270 | 3,320 | 12,758 | 10,230 |
Profit (loss) for the period | (1,678) | (538) | 931 | 2,664 |
Free cash flow | 782 | (7,089) | (3,970) | (5,754) |
Ørsted kept its full-year EBITDA guidance of DKK 23 billion-26 billion, excluding earnings from new partnerships and impact from cancellation fees, but raised the directional guidance in Offshore and lowered the directional guidance in Bioenergy & Other. It also reduced its gross investments guidance by DKK 4 billion to DKK 44 billion-48 billion because of timing effects across its project portfolio.
(DKK 1 = USD 0.148/EUR 0.134)
Eurowind, Wind Estate set up EUR-400m wind JV in Denmark
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