Ørsted Posts Strong Results, Sees No Significant Impact from COVID-19

Hornsea One Boosts Ørsted’s Full-Year Guidance

Ørsted has reported an increase of DKK 1 billion (circa EUR 134 million) in its full-year EBITDA guidance due to updated assumptions regarding the divestment of the transmission asset for the Hornsea One offshore wind farm.

The Danish company said it now expects EBITDA excluding earnings from new partnership agreements to be DKK 16-17 billion this year.

Illustration; Ørsted

Following further progress in the divestment process, Ørsted has lowered its assumption regarding the preferred bidder’s expected return requirement on the transmission asset.

“The implication of this is twofold. A positive NPV impact on our own share of the transmission asset, as we will be paying lower than assumed tariffs going forward, and higher profit on the 50% share of the transmission asset we divest on behalf of our partner,” Ørsted stated.

The impact of the latter will be recognized in EBITDA in 2020, while the EBITDA impact on Ørsted’s share will materialize over the lifetime of the asset.

To remind, Ofgem recently selected Diamond Transmission Partners as the preferred bidder for the offshore transmission of Hornsea Project One.

The 1.2GW project comprises 174 Siemens Gamesa 7MW turbines commissioned in January.