TIDMORSTED 
 
 
   Today, Ørsted's Board of Directors approved the interim report for 
the first half-year (H1) of 2020. Our operating profit (EBITDA) amounted 
to DKK 9.8 billion, an 11% increase compared to the same period last 
year. 
 
   Earnings from offshore and onshore wind farms in operation increased by 
17% to DKK 8.2 billion driven by ramp-up of power generation from 
Hornsea 1, Lockett, and Sage Draw together with high wind speeds. 
 
   Net profit amounted to DKK 2.5 billion and return on capital employed 
(ROCE) came in at 11%. 
 
   The green share of our heat and power generation increased from 82% to 
88%. 
 
   Our EBITDA guidance is unchanged relative to the guidance in our interim 
financial report for Q1 2020, and thus we re-iterate our EBITDA guidance 
of DKK 16-17 billion in 2020. We lower our expectation to gross 
investments by DKK 2 billion to DKK 28-30 billion in 2020 due to changed 
timing of payments. 
 
   Henrik Poulsen, CEO and President of Ørsted, says: 
 
   "Despite the comprehensive health, social, and economic consequences of 
COVID-19, Ørsted has maintained stable operations and strong 
earnings during 2020. Our asset base has continued to be fully 
operational and we have maintained normal availability rates on our 
offshore and onshore wind farms. 
 
   We have however seen negative COVID-19 related effects on European power 
markets, especially in the UK, driven by lower demand for electricity. 
The negative impact on our Q2 earnings was approx. DKK 150 million. A 
contained impact which does not change our full-year expectations. 
 
   Our construction projects have largely progressed according to plans, 
both in Europe, Asia, and the US. The part of our portfolio most 
affected by COVID-19 is the construction of offshore substations for 
Hornsea 2 and Greater Changhua 1 & 2a. These are being constructed at 
two shipyards in Singapore, which were closed down for two months due to 
COVID-19. The shipyards have now begun to slowly ramp-up again. Although 
we still expect to be able to complete both projects within our budget 
and time schedule, we see increased risk of delays; especially at 
Hornsea 2. We expect any delays to have a limited overall impact on 
project economics. 
 
   During the second quarter we achieved significant strategic results. 
 
   We signed the largest ever renewable corporate power purchase agreement 
(CPPA) with Taiwan-based TSMC, the world's largest semiconductor 
foundry. TSMC will offtake the full generation from our 920MW Greater 
Changhua 2b & 4 offshore wind farm. 
 
   In the US, the Bureau of Ocean Energy Management (BOEM) released a draft 
of their Supplemental Environmental Impact Statement (SEIS) in June. The 
SEIS provides an evaluation of the foreseeable cumulative impacts of 
offshore wind projects on the US East Coast and provides a framework for 
future development of the industry. We are still awaiting the timeline 
for the approval process for our US projects. We expect to have more 
clarity during the second half of the year. 
 
   At the 12MW Coastal Virginia demonstration project in the US, which we 
are constructing for Dominion Energy, we successfully installed both 
monopile foundations and turbines in June. The wind farm is the first 
ever in US federal waters. 
 
   We commissioned the 230MW onshore wind farm Plum Creek in Nebraska ahead 
of schedule and on budget, and we received tax equity funding from our 
partners. 
 
   We acquired the 227MW(ac) solar PV project Muscle Shoals, located in 
Alabama. When completed, expectedly in Q3 2021, it will be the largest 
solar farm in south-eastern US. 
 
   Together with Copenhagen Airport, A.P. Moller - Maersk, DSV Panalpina 
and SAS, we have founded the partnership - 'Green fuels for Denmark' - 
to develop an industrial-scale production facility to produce 
sustainable fuels for road, maritime and air transport in the Copenhagen 
area. The partnership brings together the demand and supply side of 
sustainable fuels with a vision to realise what could become one of the 
world's largest electrolyser and sustainable fuel production facilities. 
 
 
   Together with nine partners, we secured funding for the renewable 
hydrogen project WESTKÜSTE 100 as the first large-scale hydrogen 
project in Germany within the Reallabor framework. WESTKÜSTE 100 is 
our third hydrogen project found eligible for public funding, and we are 
very excited about the prospects of supporting heavy industries and 
heavy transport with clean alternatives based on renewable hydrogen. 
 
   The world continues to navigate a health crisis which has a severe 
impact on the lives and livelihoods of people across the globe as well 
as on global and local economies. In this challenging situation, 
Ørsted continues to focus on the health and well-being of its 
employees and their families while supporting a stable power supply in 
the markets where we operate. Our business model and organisation have 
proven very resilient, and we remain confident about the company's 
ability to deliver on both its short-term and long-term performance 
targets. We continue to see strong political and public support for an 
accelerated transition to green energy and Ørsted's long-term 
growth prospects are as strong as ever." 
 
   Financial key figures for Q2 2020 and H1 2020: 
 
 
 
 
DKK million             Q2 2020  Q2 2019    %     H1 2020  H1 2019    % 
----------------------  -------  -------  ------  -------  -------  ------ 
EBITDA                    2,956    3,625   (18%)    9,761    8,755     11% 
Profit (loss) for the 
 period from cont. 
 operations               (809)    1,093    n.a.    2,537    3,732   (32%) 
Profit (loss) for the 
 period from discont. 
 operations                (16)     (18)   (11%)     (44)     (61)   (28%) 
Profit (loss) for the 
 period                   (825)    1,075    n.a.    2,493    3,671   (32%) 
Cash flows from 
 operating activities     8,197    7,510      9%    7,769    7,392      5% 
Gross investments       (3,757)  (3,368)     12%  (9,065)  (7,267)     25% 
Divestments                  45     (11)    n.a.       52    2,667   (98%) 
Free cash flow            4,485    4,131      9%  (1,244)    2,792    n.a. 
Net interest-bearing 
 debt                    22,272    4,980    347%   22,272    4,980    347% 
FFO/adjusted net debt       23%      58%  (35%p)      23%      58%  (35%p) 
ROCE                        11%      29%  (18%p)      11%      29%  (18%p) 
----------------------  -------  -------  ------  -------  -------  ------ 
 
 
   For further information, please contact: 
 
   Media Relations         Investor Relations 
 
   Martin Barlebo             Allan Bødskov Andersen 
 
   +45 99 55 95 52          +45 99 55 79 96 
 
 
 
 
 
   Earnings call 
 
   In connection with the presentation of the interim report, an earnings 
call for investors and analysts will be held on Wednesday, 12 August 
2020 at 14:00 CEST. 
 
   Denmark: + 45 78 15 01 10 
 
   UK: + 44 333 300 9035 
 
   US: + 1 844 625 1570 
 
   The earnings call can be followed live at: 
 
   https://www.globenewswire.com/Tracker?data=-MMHkJrYR1rxJ-D2hbC6ZitgFzsA7R-OhCN5xBEzNjioL7GYsIIqjW4c2l9m06dkdTQMJFN4PgGG2OJ4gxCPGUn0hjn_9ihGxxjgnpSrZ9PZUvTS_pz01t0FkqH5lk_ie3r4yJlfGa0sNYQag8ASQfvA5EBS7twuU9nWXFDQYDI= 
https://edge.media-server.com/mmc/p/fm7kbt6i 
 
   Presentation slides will be available prior to the earnings call at: 
 
   www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0 
 
 
   The interim report is available for download at: 
 
   https://www.globenewswire.com/Tracker?data=4C-f14MAq--LAaeCkdYxYBTNLXEdnsIameHFjNIxvovX1QBZo5i3PrYTUmQHNLIxs3nLM6b94sl_Za3DtxWXzdYQa_KT1jNM5WCTJfN2GyXl6EKgTWIXJzL3-RipIV1fnmpIsm6aidV6hGacirjhjVNgn9sQexsnDtm0FGeCn2aT9yOkyL13iCmyMgRv1io-xTvlndU8s1M0Stla3YSHkL-sQbEqNBPQrN6igqqHr1a45OvzRr0ojczk5RtmVf6A 
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0 
 
 
   About Ørsted 
 
   The Ørsted vision is a world that runs entirely on green energy. 
Ørsted develops, constructs and operates offshore and onshore wind 
farms, solar farms, energy storage facilities, and bioenergy plants, and 
provides energy products to its customers. Ørsted ranks #1 in 
Corporate Knights' 2020 index of the Global 100 most sustainable 
corporations in the world and is recognised on the CDP Climate Change A 
List as a global leader on climate action. Headquartered in Denmark, 
Ørsted employs 6,700 people. Ørsted's shares are listed on 
Nasdaq Copenhagen (Orsted). In 2019, the group's revenue was DKK 67.8 
billion (EUR 9.1 billion). Visit orsted.com or follow us on Facebook, 
LinkedIn, Instagram and Twitter. 
 
 
 
   Attachments 
 
 
   -- Ørsted_Company announcement_Interim report_H12020 
      https://ml-eu.globenewswire.com/Resource/Download/68a83241-6971-44f6-925c-40a4e4e7ce38 
 
 
   -- Ørsted_H1 2020_Interim financial report 
      https://ml-eu.globenewswire.com/Resource/Download/948fe7da-8dd1-4843-beb9-cdbfa60d833f 
 
 
   -- Ørsted_Q2 2020_Investor presentation 
      https://ml-eu.globenewswire.com/Resource/Download/7b8b3106-bf47-4916-8271-32dd807c5ecc 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

August 12, 2020 02:16 ET (06:16 GMT)

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