Ørsted building and flags

Ørsted Posts All-Time High Offshore Wind Earnings

World’s leading offshore wind developer, Ørsted, has reported DKK 6.9 billion (EUR 926 million) operating profit (EBITDA) for the first quarter of 2023, DKK 2.5 billion less compared to the same period a year earlier.


EBITDA excluding new partnerships in Q1 2023 was DKK 0.9 billion lower than Q1 2022, as Q1 2022 was positively impacted by a DKK 1.6 billion gain from the 50 per cent farm-down of the Borkum Riffgrund 3 offshore wind farm.

Earnings from the company’s wind and solar assets in operation amounted to DKK 6.9 billion, which was an increase of DKK 2.2 billion compared to the same period last year.

Ørsted said that earnings from offshore sites were at ”an all-time high” and ”back on track” as the ”key EBITDA driver” in the quarter.

Earnings from offshore sites amounted to DKK 5.9 billion, an increase of DKK 2.2 billion compared to last year.

The increase was driven by the ramp-up of generation from the Hornsea 2 and Greater Changhua 1 and 2a offshore wind farms in the UK and Taiwan, respectively.

Power generation from offshore and onshore assets increased by 16 per cent and totalled 8.9 TWh
in the quarter.

Offshore, power generation increased by 15 per cent to 5.2 TWh in Q1 2023, again due to the ramp-up of generation from Hornsea 2 and Greater Changhua 1 and 2a, partly offset by slightly lower wind

Offshore revenue increased by 12 per cent to DKK 22.1 billion, and the revenue from offshore wind farms in operation increased by 51 per cent to DKK 5.8 billion, mainly driven by higher generation, the company said.

Net profit for the quarter amounted to DKK 3.2 billion, again DKK 2.5 billion less than in the first quarter of 2022, and return on capital employed (ROCE) came in at 14 per cent.

Related Article

The company’s revenue amounted to DKK 29.4 billion in Q1 2023, a decrease of 13 per cent relative to Q1 2022 attributed to the significantly lower power prices across all markets as well as lower gas volumes sold and prices.

Ørsted has maintained its EBITDA guidance of DKK 20-23 billion excluding earnings from new partnerships during the year, as well as its gross investment guidance of DKK 50-54 billion.

Construction and Business Update

At Greater Changhua 1 and 2a, the cable and turbine scopes are progressing as
planned, and Ørsted still expects to fully commission the wind farm in the second half of 2023.

All 111 jacket foundations and 97 wind turbines have now been installed offshore Taiwan. 25 of the turbines are now fully commissioned, the developer said.

The South Fork wind farm in the USA has entered the offshore installation phase and the 130 MW wind farm is expected to be commissioned in the second half of this year, as originally planned.

Borkum Riffgrund 3 and Gode Wind 3 in Germany are all progressing according to plan, with the expected commissioning in 2024 and 2025, the company said.

Ørsted was also, together with its partner Eversource, the only developer to respond to Rhode Island’s offshore wind solicitation.

Related Article

”We’re pleased with the Q1 2023 results where our offshore sites earnings are back on track as the key EBITDA driver. Furthermore, the construction of our current wind and solar assets is progressing according to plan,” Mads Nipper, Group President and CEO of Ørsted, said.

”Among significant strategic milestones during the quarter, we took FID on our Greater Changhua 2b and 4 offshore wind farms in Taiwan with a total capacity of 920 MW. We expect to start onshore construction this year with commissioning by the end of 2025. Greater Changhua 2b and 4 have a robust business case, which will create long-term value for Ørsted. Our 100 MW Salamander project, a joint venture between Simply Blue Group, Subsea 7, and Ørsted, won a Scottish floating wind lease and is a tangible step to making floating wind a reality.”


Get in front of your target audience in one move! OffshoreWIND.biz is read by thousands of offshore wind professionals daily.

Follow offshoreWIND.biz on: