Danish energy giant Ørsted (CPH: ORSTED) earned £2.65 billion (DKK 23.6 bn) before taxes in the first nine months of 2024.
The firm announced in a stock market update that it’s earnings before interest, taxes, depreciation, and amortization (EBITDA) had jumped from £2.18 bn (DKK 19.4) in the same period the year previous.
Mads Nipper, group president and CEO of Ørsted, said: “I am pleased with our operational performance and financials results.
“Based on solid 9M [nine month] earnings, we have narrowed our EBITDA guidance for the year.”
Excluding new partnerships and cancellation fees, Ørsted’s EBITDA grew 12% year-on-year as it reported £1.93 bn.
The Danish wind giant shared that it has lowered its gross investments guidance to between £4.05 bn and £4.50 bn (DKK 36-40 bn), a £900 m (DKK 8 bn) reduction.
CfD and greater generation cause earnings rise
The firm explained that the increase was driven by increased generation at its offshore wind farms Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, higher wind speeds, and higher prices on its contracts for difference (CfDs) and green certificates.
The firm had successful CfD bids across its 2.9GW Hornsea Three and 2.6GW Hornsea Four schemes this year as part of the UK government’s Allocation Round 6.
Nipper added: “We have secured additional value-creating renewable growth opportunities in the UK with the 3.5 GW award for Hornsea 3 and 4, which is a significant contribution to Ørsted’s long-term renewable capacity goals.”
Recently, Ørsted sold a stake in four of its UK wind farms to US energy investor Brookfield (NYSE: BEP) in a deal worth £1.745 billion.
Brookfield is set to acquire a 12.45 % minority stake in four of Ørsted’s operational UK offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension.
Nipper explained: “We are on track with our divestment programme, where we have signed an agreement to divest a minority share in four UK assets.”
The firm has also “successfully renegotiated and settled contracts related to the close-down of Ocean Wind,” Nipper continued.
This had a “positive outcome,” resulting in a net reversal of cancellation fees of £720 million (DKK 6.4 bn).
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