Ørsted

“2025 was a defining year for Orsted. I'm satisfied with the large steps we've taken to create a stronger, more focused, and more competitive Orsted, even if we still have a lot of work ahead of us. We've strengthened our financial foundation and focused our business on offshore wind, and we now have financial flexibility to pursue attractive offshore wind opportunities in Europe and select markets in Asia Pacific.”

“I'm satisfied with the good progress across our offshore construction programme, which will grow our installed capacity within offshore wind to more than 18 GW by the end of 2027. In 2025, we also delivered strong operational performance within guidance, and we increased offshore generation by 6% compared to 2024, despite wind speeds below the norm.”

“I'm satisfied with the good progress across our entire construction portfolio and our solid operational performance. Despite lower wind speeds in the quarter, we have increased the generation by 8% compared to Q3 2024.”

Ørsted delivered operations well above last year and strong H1 2025 results. Offshore generation increased despite lower wind speeds. The company completed a DKK 60 billion rights issue to strengthen the capital structure and progressed the divestment programme ahead of schedule.

“Our capital allocation is based on a strict and value-focused approach, and after careful consideration, we've decided to discontinue the development of the Hornsea 4 project in its current form, well ahead of the planned Final Investment Decision later this year. The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation.”

“We'll reduce our investment programme towards 2030 through a stricter, more value-focused approach to capital allocation. We do this to ensure a stronger balance sheet, supporting a solid investment grade rating, and to ensure that we only invest our capital in the most financially attractive opportunities.”

The previous ambition for installed renewable capacity of 35-38 GW by 2030 and the targeted EBITDA of approximately DKK 39-43 billion in 2030 have been discontinued. Ørsted has reduced its investment programme towards 2030 by around 25%, reflecting industry-wide challenges including supply chain bottlenecks, high financing costs, and political headwinds.

Ørsted recognised impairment losses of DKK 12.1 billion in Q4 2024. A 75 basis point increase in weighted average cost of capital due to rising US long-dated interest rates led to DKK 4.3bn impairment. US seabed lease values written down by DKK 3.5bn. Sunrise Wind saw DKK 4.3bn impairment from delayed commissioning (pushed to H2 2027) and higher costs, especially monopile foundations.

Mads Nipper stepped down as CEO on 1 February 2025. Rasmus Errboe, Deputy CEO and Chief Commercial Officer, was appointed as new Group President and CEO. During Nipper's tenure, installed renewable capacity grew from 11.3 GW to 18.2 GW while navigating a portfolio of legacy projects and consistently delivering on EBITDA guidance.

“I am pleased with our results. Orsted's operations are performing well, and particularly the earnings from our offshore wind farms, and thus our core business, have increased. In the first half of the year, we have executed on the updated business plan that we presented in February, and we have put almost 2 GW of renewable energy capacity into operation.”

Despite strong underlying business progress, 2023 marked a year with substantial challenges. Financial results were adversely affected by impairments on US offshore projects and cancellation fees related to ceasing Ocean Wind 1. Ørsted has thoroughly reviewed the events and is implementing learnings into its operating model to reduce risks in project development and execution.

“In order to improve our competitiveness, ensure value creation, and ensure our ability to attract capital to the renewable build-out, we will make Orsted a leaner and more efficient company.”

Ørsted reduced its installed renewable capacity ambition from approximately 50 GW to 35-38 GW by 2030. Project cancellations and phasing of capital expenditure will result in approximately DKK 35 billion of capital expenditure relief in 2024-2026. Ørsted has exited several offshore markets including Norway, Spain, and Portugal, and deprioritised development activities in Japan.

“We are extremely disappointed to announce that we are ceasing the development of Ocean Wind 1 and 2. We firmly believe the US needs offshore wind to achieve its carbon emissions reduction ambition, and we remain committed to the US renewables market and truly value the efforts by the US government to support the build-up of the US offshore wind industry. However, the significant adverse developments from supply chain challenges, leading to delays in the project schedule, and rising interest rates have led us to this decision.”

The situation in US offshore wind is severe. We are willing to walk away from projects if we do not see value creation that meets our criteria. The current market situation with supply chain challenges, project delays, and rising interest rates has challenged offshore projects in the US.

“Even as the offshore wind industry faces some financial woes, its fundamental value proposition has never been stronger. I remain fundamentally optimistic. The future of renewables is bright. It is crucial for governments and industry to work together to weather the current storm.”

Ørsted announced anticipated impairments on its US portfolio of up to DKK 16 billion, driven by adverse supplier delays, increasing risk in suppliers' ability to deliver, and higher US long-dated interest rates. If interest rates remain at current levels, approximately DKK 5 billion of impairments would result from rates alone.

“Today, we confirm our target of ~50 GW in 2030 — one of the largest investment programmes in the green transition. We'll only take FID on projects that we find will create sufficient value.”

“Orsted has a clear strategic direction and very strong capabilities to capture the massive growth in renewables in the years to come. Going forward, we see strong opportunities to build our renewable portfolio, including by investing a majority of our CAPEX in offshore, targeting an unlevered, fully loaded lifecycle IRR at 150-300 basis points spread to WACC at the time of bid or FID, whichever comes first.”

“In a year with unusual market conditions, not least the very volatile energy prices and a substantial increase in inflation, we're happy to achieve a record-high operating profit for 2022. Our earnings mix looks quite a bit different from what we had expected. We ended up booking a considerably worse result in our Offshore division, while our other segments delivered better results than expected.”

Ørsted increased full-year EBITDA guidance and continued expansion in offshore and onshore renewables. However, the earnings mix differed from expectations — Offshore division earnings were lower than expected due to adverse hedge impacts and construction delays at Hornsea 2 and Greater Changhua 1&2a.

“Our aspiration is to become the world's leading green energy major by 2030. We now set the ambition of reaching approx. 50 GW of installed renewable energy capacity by 2030, more than quadrupling our installed capacity over the next decade. It's our clear aspiration to remain the global market leader in offshore wind.”

Ørsted plans to invest approximately DKK 350 billion in green energy from 2020 to 2027, of which approximately 80% is expected to be within offshore wind. The company targets 12% annual EBITDA growth and an average ROCE of 11-12% over the period.

Ørsted sold a 50% stake in the 605 MW Greater Changhua 1 Offshore Wind Farm in Taiwan to CDPQ and Cathay PE for approximately USD 2.7 billion. This was one of the largest offshore wind farmdown transactions to date, validating the asset class for institutional investors in Asia.

“2019 was a great year for Orsted with continued strategic progress and global expansion. We achieved a very satisfactory operating profit (EBITDA), and the green share of our heat and power generation increased to a new high of 86%. We remain strongly committed to our vision of a world running entirely on green energy.”

Ørsted reduced its unlevered lifecycle IRR target for seven named offshore wind projects from 7.5-8.5% to 7.0-8.0%, driven by revised production forecasts reflecting higher wake effects between neighbouring wind farms. The lifetime load factor for European offshore wind was reduced to around 48%.

“2019 has been a very good year for Orsted so far. We have secured a US offshore wind portfolio with a total capacity of 2.9 GW to be completed towards 2024. We have up to 4.5 GW of lease rights for future offshore wind projects in the US.”

“We expect the global market for renewable energy to more than triple towards 2030. We're raising our 2025 ambition for offshore wind from 11-12 GW to 15 GW. Moving towards 2025, we plan to invest DKK 200 billion in green energy, thereby contributing to the transformation of the global energy system and creating value for our shareholders.”

“Towards 2030, it's our strategic ambition to reach an installed capacity of more than 30 GW, provided that the build-out creates value for our shareholders.”

Ørsted acquired Deepwater Wind for USD 510 million to create the leading US offshore wind platform with the most comprehensive geographic coverage and the largest pipeline of development capacity. The combined portfolio includes approximately 3.3 GW of US development projects.

“2017 will be remembered as the year when offshore wind became cheaper than black energy, as demonstrated by the recent tenders for offshore wind in Germany and the UK. It has never been more clear that it is possible to create a world that runs entirely on green energy.”

“I'm pleased with the positive feedback received from investors all around the world and the trust they have shown us by becoming shareholders in DONG Energy. We'll work hard to deliver on their expectations as we continue to lead the transition to a more sustainable energy system. All DONG Energy employees should take pride in having built one of the fastest growing, greenest, and most innovative energy groups in Europe.”