4C Offshore Empowering Intelligence

Ørsted issues 2020 results

4C Offshore | Tom Russell
By: Tom Russell 03/02/2021 Ørsted
Ørsted’s Board of Directors has approved the company's annual report for 2020. The company's operating profit (EBITDA) amounted to DKK 18.1 billion, a 4% increase compared to last year and above its most recent guidance of DKK 16-17 billion.

Earnings from offshore and onshore wind farms in operation increased by 14% to DKK 16.9 billion, driven by the ramp-up of power generation from Hornsea 1, Borssele 1 & 2, Lockett, Sage Draw, Plum Creek, and Willow Creek. In addition, year-on-year development was positively impacted by the receipt of CfDs of another 400 MW of Hornsea 1 from April, and higher wind speeds. This was partly offset by adverse COVID-19 impacts on especially the UK power market and lower earnings from trading activities.


Ørsted closed the divestment of its Danish power distribution, residential customer, and city light businesses. The transaction resulted in proceeds of DKK 20.5 billion and a gain of DKK 10.9 billion, which will be deployed into the company's global renewable energy build-out plan.


Net profit amounted to DKK 16.7 billion, and return on capital employed (ROCE) came in at 10%, in line with targets.


Ørsted's green share of heat and power generation continued to increase and reached an all-time high of 90% in 2020, driven by continued ramp-up of its offshore and onshore wind farms.


The Board of Directors recommended a dividend of DKK 11.5 per share (DKK 4.8 billion in total), up 9.5% and in line with its dividend policy.


Mads Nipper, Group President and CEO of Ørsted, commented: “Ørsted delivered a strong set of results in 2020, both operationally and financially. Despite the challenges posed by COVID-19, our colleagues have done an outstanding job to keep our energy production assets fully operational at normal availability rates. During 2020, we’ve also commissioned five new wind farms and managed to move our construction projects forward. This demonstrates the resilience of our business model and the skills and spirit of our people. Safety continues to remain our key priority, and we continue to do our utmost to keep our colleagues safe across our locations.


"In January 2021, we were named the world’s most sustainable energy company for the third consecutive year, and our focus on sustainability remains stronger than ever. We are fully on track with our plan to reduce our greenhouse gas emissions to become carbon-neutral as a company in 2025.


"I am grateful for the support and professionalism of our customers and partners. I am keenly aware that only together, we can do great things and move towards our vision of a world that runs entirely on green energy.”


On 12 January 2021, the company announced its operating profit (EBITDA) guidance for 2021. Excluding new partnership agreements, it expects EBITDA to be DKK 15-16 billion in 2021, compared to DKK 18.1 billion in 2020.

Gross investments for 2021 are expected to amount to DKK 32-34 billion, reflecting a high level of construction activity related to offshore wind, onshore wind, and solar PV projects.


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