Renewable energy giant Orsted increased its profits guidance for 2022 despite what its CEO described as “unprecedented times” of financial volatility.
The Danish group now expects operating profits (Ebitda) for the year to come in DKr1bn ($131m) higher than previously forecast at DKr21-23bn, excluding one offs from new partnerships.
The increase is mostly down to higher profits from its combined heat and power (CHP) plants buoyed by higher power prices, and excludes Orsted’s income from its divestments of 50% of its Hornsea 2 and Borkum Riffgrund 3 offshore wind project off the UK and Germany respectively.
Orsted – which recently announced a major organisational shake-up with a more regional focus – posted an Ebitda of DKr25.4bn for the first nine months, of which DKr10.9bn related to the ‘farm-downs’ of the stakes in the giant offshore projects.
However, Ebitda at its offshore wind operations fell back by DKr1.4bn in the most recent third quarter, partly as a result of "overhedging" against lower-than-forecast wind speeds that forced the company to buy expensive power on the merchant market to fulfil contracts.
Orsted CEO Mads Nipper said: “Despite the highly unusual and volatile period with war, high inflation, and increasing interest rates Orsted has continued the build-out of renewable energy and the delivery of power and heat to our communities. Most of the power delivered was under fixed-price agreements or hedged.
“In these unprecedented times, I am very pleased that we have been able to increase our Ebitda guidance.”
Orsted in the third quarter agreed a tie-up with Danish compatriot CIP over potential development of 5.2GW in its home market, and completed the takeover of the German onshore developer Ostwind.
