195;rsted A/S Annual Report 2020 - Very Strong Results, Both Operationally And Financially

TIDMORSTED 
 
 
   Today, Ørsted's Board of Directors approved the annual report for 
2020. Our operating profit (EBITDA) amounted to DKK 18.1 billion, a 4 % 
increase compared to last year and above our 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, our 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. 
 
   We closed the divestment of our 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 our 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 our target. 
 
   Our 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 
our offshore and onshore wind farms. 
 
   The Board of Directors recommends a dividend of DKK 11.5 per share (DKK 
4.8 billion in total), up 9.5 % and in line with our dividend policy. 
 
   Mads Nipper, Group President and CEO of Ørsted, says in a comment 
to the annual report for 2020: 
 
   "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." 
 
   Financial key figures for Q4 2020 and FY 2020: 
 
 
 
 
DKK million        Q4 2020  Q4 2019    %       2020      2019      % 
-----------------  -------  -------  ------  --------  --------  ------ 
EBITDA               5,003    4,613     8 %    18,124    17,484     4 % 
Profit (loss) for 
 the year from 
 cont. 
 operations          2,174      925   135 %    16,727     6,100   174 % 
Profit (loss) for 
 the year from 
 discont. 
 operations             15     (29)    n.a.      (11)      (56)  (80 %) 
Profit (loss) for 
 the year            2,189      896   144 %    16,716     6,044   177 % 
Cash flows from 
 operating 
 activities          6,756    4,816    40 %    16,466    13,079    26 % 
Gross investments  (8,639)  (8,816)   (2 %)  (26,967)  (23,305)    16 % 
Divestments        (1,519)      402    n.a.    19,039     3,329   472 % 
Free cash flow     (3,402)  (3,598)   (5 %)     8,538   (6,897)    n.a. 
Net 
 interest-bearing 
 debt               12,343   17,230  (28 %)    12,343    17,230  (28 %) 
FFO/adjusted net 
 debt                 48 %     31 %   17 %p      48 %      31 %   17 %p 
ROCE                  10 %     11 %  (1 %p)      10 %      11 %  (1 %p) 
-----------------  -------  -------  ------  --------  --------  ------ 
 
   Outlook 2021 
 
   On 12 January 2021, we announced our operating profit (EBITDA) guidance 
for 2021. Excluding new partnership agreements, we expect EBITDA to be 
DKK 15-16 billion in 2021 compared to DKK 18.1 billion in 2020. Further 
details about our outlook for EBITDA for 2021, including directional 
guidance for the business units, can be found in the financial outlook 
section in the annual report for 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. 
 
   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 annual report, an earnings 
call for investors and analysts will be held on Wednesday, 3 February 
2021 at 14:00 CET. 
 
 
 
 
 
   Denmark: +45 7815 0110 
 
   UK: +44 333 300 9270 
 
   USA: +1 833 249 8407 
 
   The earnings call can be followed live at: 
 
   https://www.globenewswire.com/Tracker?data=JUGQB6jrNxTYwdvdo9J-Il4r0l82YfAF_nhApxoX_TsWhKyGlK-f0MPuMHaZixJKVgVaFKWqW688i2t_3X1l-6eCULE54bpsbVK2YGhl2uG7SsPAWfXWf6yTl-kTS4MrjktpshwTrNMkwk811Ntvt9ehh6wI0ngXtvaxfcfefgk= 
https://edge.media-server.com/mmc/p/fi48sxzy 
 
   Presentation slides will be available prior to the earnings call at: 
 
   www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0 
 
 
   The annual report is available for download at: 
 
   https://www.globenewswire.com/Tracker?data=9fWktXoGxnFLHV-XWp8SSb3Fb18OnLGYpKQL-voJeIop1Xrl49AzpES9J2YEi9VMPtbsULU37vVim5zPXK0uFrUKnJwwm420RuuctULHQUUBBKezdcnPKA1SBlXcg2cFxVnnAZppeJrJThmACBUvJrj1QWxEag8C7Z50nNpc_oxHIzDJXaOkcrk0lIy8YB7qqbTq6Rfcz7GWrsFe96SIM-U_7EbeTTwQNQWcp92kzBY0fdvYkCg0pSQwoYclSwQI 
www.orsted.com/en/investors/ir-material/financial-reports-and-presentations#0 
 
 
   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 as the 
world's most sustainable energy company in Corporate Knights' 2021 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 6,179 
people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). 
In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion). 
Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and 
Twitter. 
 
 
 
   Attachments 
 
 
   -- Annual report 2020_Company announcement 
      https://ml-eu.globenewswire.com/Resource/Download/f0c11c31-dfc7-4b43-bd64-aeec2e94a789 
 
 
   -- Annual report 2020_Investor presentation 
      https://ml-eu.globenewswire.com/Resource/Download/500ef19a-f853-4103-a857-bb78079ed582 
 
 
   -- Annual report 2020 
      https://ml-eu.globenewswire.com/Resource/Download/d24383e8-29a4-43bd-acd9-29c89f7502a8
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