With the completion of a billion-dollar capital increase and a recent sale of ownership interests in the Hornsea 3 offshore wind farm, Ørsted has a cash balance that can handle a little bit of everything.
In the third quarter, the Danish energy company still had to collect a minus of 1.7 billion kroner on the bottom line. However, the negative result was largely due to impairments of 1.76 billion kroner, which were therefore largely responsible for turning black numbers into red.
In Ørsted's case, it is once again the American offshore wind projects that are driving the impairments. In the notes to the financial statements, the company itself cites rising import duties and the impact of the construction halt imposed by the US authorities on the offshore wind farm Revolution Wind as the main reasons for the extent of the impairments.
In his comments on the financial statements, CEO Rasmus Errboe looks ahead and focuses on the positive news.
- I am satisfied with the good progress on our ongoing projects and our solid operations. Even though wind speeds were lower in the quarter, we increased our electricity production by eight percent compared to the third quarter of last year, he says.
Maintains expectations for the year's result
Ørsted maintains its expectation for the financial year of an operating profit of between DKK 24 and 27 billion.
It is also expected that the ongoing projects will improve Ørsted's operating result by between DKK 11 and 12 billion annually, once they are completed.
On the other hand, Ørsted has scaled back its strategic ambitions and will focus exclusively on European offshore wind projects in the future.
This has also meant that it expects to reduce its workforce by around 2,000 people by 2017, as existing projects are completed.
/ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
