By City A.M – Nov 05, 2024, 12:00 PM CST
Orsted has hiked its full-year earnings guidance as the Danish group’s offshore wind projects drove profits upward in the first nine months of the year.
Full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) is expected to come in at between DKK 24bn to 26bn (£2.6bn to £2.9bn), narrowed from a prior forecast of 23bn to 26bn DKK.
The Danish state-backed energy group said operating profit had risen from DKK 19.4bn to DKK 23.6bn compared with the prior year.
In a statement, chief executive Mads Nipper flagged the “value-creating” opportunities of Orsted’s award to deliver 3.5 GW of capacity for the world’s biggest offshore wind farm, Hornsea 3, which is expected to power more than 3m homes in the UK upon completion.
Orsted announced in September it had been awarded the contract, which also included 2,400 capacity at Hornsea 4, as part of Britain’s most recent renewables auction.
“We have secured additional value-creating renewable growth opportunities in the UK with the 3.5 GW award for Hornsea 3 and 4, which is a significant contribution to Ørsted’s long-term renewable capacity goals,” he said.
Total earnings from Orsted’s offshore sites amounted to DKK 15.3bn, an increase 2.2bn year-on-year.
This was driven in part by higher wind speeds and higher prices, as well as the ramp-up of generation at farms including Greater Changua, South Fork and Gode Wind 3, the firm said.
Nipper added: “Revolution Wind and Sunrise Wind, our two offshore wind projects in the US, are progressing according to the updated construction plan.
“However, we have seen risks impacting the construction of Revolution Wind, and we are working diligently and with a strong focus to de-risk the continued project execution.”
By City AM
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