UPDATED: The pressured energy company Ørsted would probably have liked to have been spared the financial storm of recent years, which has led to write-downs in the billions and a share in almost free fall. The annual accounts, which were published on Thursday morning, are the latest proof that things have not gone as well as one might have hoped.
In 2024, it thus turned out to be a profit of just 16 million. DKK. Like the year before, this is primarily a result of the financial basis for large offshore wind projects partially falling apart. Revenue ended at 71 billion. DKK, which is the lowest level since 2020.
Rising interest rates have helped make it an expensive pleasure for Ørsted to build and own offshore wind farms, which is why it has had to write down a number of projects worth many billions of kroner.
- I would like to express my great gratitude to our talented colleagues, who in a year of uncertainty and cuts have once again shown their tireless commitment and who continue to drive the energy transition forward, says Rasmus Errboe. says the newly appointed CEO, Rasmus Errboe, in a comment on the accounts.
In the just-completed fourth quarter, the company was forced to write down 12.1 billion. DKK. This was already announced in a company announcement on January 20. Also in connection with the half-year financial statements, which were presented in August, Ørsted wrote down the value of several projects.
Looking at the adjusted operating profit (EBITDA), however, there is slightly better news for Ørsted. It ends up with a profit of almost DKK 32 billion, against DKK 18.7 billion in 2023. Of this, DKK 7.3 billion came from a net reversal of provisions for cancelled projects, mainly from the American project Ocean Wind. EBITDA excluding new partnerships and cancellation costs amounted to DKK 24.8 billion, which is an increase of DKK 0.7 billion compared to 2023 and in line with Ørsted's own expectations of DKK 24-26 billion. DKK. The operating result was mainly due to the company's offshore wind farms.
Cutting investment plans
On the other hand, a new sense of reality seems to have set in on the management board after the new CEO, Rasmus Errboe, recently took over from Mads Nipper.
On Wednesday, the company announced that it will cut its investment plans significantly towards 2030.
Previously, the company had a goal of investing DKK 270 billion in the period, but this has now been adjusted down to between DKK 210 and DKK 230 billion. The reduction in the investment program is justified by the fact that Ørsted has recently been hit by challenges that are specifically related to the company's American offshore wind portfolio.
- 2024 was a challenging year for the industry and for Ørsted. We have experienced headwinds and have therefore taken the necessary steps, including adapting our business plan with a resulting reduced investment program, to strengthen the capital structure and value creation, says Rasmus Errboe.
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