Ørsted's Q1 profit slightly down, but wind earnings grow

Source: orsted.com

May 1 (Renewables Now) - Danish offshore wind major Ørsted A/S (CPH:ORSTED) today reported a slightly reduced profit for the first quarter of 2019 after EBITDA contracted by 7%, in line with expectations.

The company’s profit from continuing operations amounted to DKK 2.64 billion (USD 396.4m/EUR 354m), down 13% year-on-year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased to DKK 5.13 billion mainly due to a positive one-off effect in the year-ago period and cyclically lower earnings from the gas portfolio in the Customer Solutions division. A 13% increase in offshore and onshore wind earnings could not fully offset such negative effects.

The offshore wind business saw its EBITDA from sites, O&M and power purchase agreements (PPAs) rise by 13% to DKK 3.64 billion. The division’s total EBITDA was DKK 4 billion, up 1% in annual terms and accounting for 78% of Ørsted’s EBITDA. Offshore wind power production grew by 3% thanks to the ramp-up of generation at the 659-MW Walney Extension and 450-MW Borkum Riffgrund 2 parks, as well as higher availability.

Ørsted’s return on capital employed (ROCE) climbed to 28% from 27% in the first quarter of 2018. In offshore wind, ROCE jumped to 34.5% from 29.8%.

The quarterly results are available in the table.

Results in DKK million Q1 2019 Q4 2018 Q1 2018
Revenue 17,239 23,527 19,808
EBITDA 5,130 19,206 5,519
- of which offshore wind 3,999 18,791 3,956
- of which onshore wind 152 44 N/A
- of which bioenergy 435 203 439
- of which Customer Solutions 567 156 1,214
EBIT 3,512 18,112 4,137
- of which offshore wind 2,701 N/A 2,937
Profit from continuing operation 2,639 15,160 3,032

Ørsted said the share of renewables in generation has reached 80% in the first quarter of 2019, up from 68% before. Offshore and onshore wind accounted for 66%.

The company is further expanding its wind fleet, both on- and offshore. In April it announced final investment decisions (FIDs) for the 338-MW Sage Draw onshore wind farm in the US and the 900-MW Greater Changhua 1 & 2a offshore wind project in Taiwan. It is also participating in tenders and auctions for offshore wind in France, the Netherlands and the US, the results of which will be known in the next three months.

The guidance for 2019 remains unchanged.

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