Orsted AS (DNNGY) Q3 2024 Earnings Call Highlights: Strong Financial Performance Amidst ...

In This Article:

  • EBITDA (Q3 2024): DKK 4.4 billion, excluding new partnerships and cancellation fees.

  • Reported EBITDA (First 9 Months 2024): DKK 23.6 billion, a 22% increase year-over-year.

  • EBITDA Guidance (2024): Narrowed to DKK 24-26 billion, excluding new partnerships and cancellation fees.

  • Renewable Capacity Commissioned (Q3 2024): 550 megawatts.

  • Total Portfolio Capacity: 18.2 gigawatts.

  • Proceeds from Divestment: DKK 15.7 billion from the sale of a minority stake in UK offshore assets.

  • Net Impairment Loss (Q3 2024): DKK 0.3 billion.

  • Net Profit (Q3 2024): DKK 5.2 billion.

  • Net Debt (End of Q3 2024): Just shy of DKK 63 billion.

  • Gross Investments (Q3 2024): DKK 9.8 billion.

  • Renewable Share of Energy (First 9 Months 2024): 97%.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Orsted AS (DNNGY) achieved significant milestones, including CFD awards for 3.5 gigawatts in the UK and favorable contract settlements for Ocean Wind One.

  • The company reported strong operational performance and progress on construction projects, with a total portfolio of 18.2 gigawatts.

  • EBITDA excluding new partnerships and cancellation fees increased by 12% to DKK 17.2 billion, reflecting solid financial performance.

  • Orsted AS (DNNGY) successfully divested a minority stake in four UK offshore assets, contributing DKK 15.7 billion to its farm down program.

  • The company shut down its last coal-fueled CHP plant, marking a major step towards its goal of reducing emissions intensity by 98% by 2025.

Negative Points

  • Unexpected challenges impacted the construction of a US offshore project, including issues with the installation of an offshore substation monopile.

  • Orsted AS (DNNGY) recognized a net impairment loss of DKK 0.3 billion due to updated market assumptions and increased costs.

  • The company faces higher than anticipated costs due to the extension of an installation vessel contract.

  • Grid connection delays in Germany are expected to push the commissioning of a project to Q1 2026.

  • The company has a remaining provision of DKK 3 billion for Ocean Wind One, indicating ongoing financial exposure.

Q & A Highlights

Q: What are the risks to the Sunrise and Revolution Wind projects if Trump wins the presidency, particularly regarding the bonus ITC and potential construction delays? A: Mads Nipper, CEO, stated that both projects are fully permitted at the federal level, and they do not anticipate changes in the risk outlook. They do not see a material risk of losing the bonus ITC and expect the energy community credit to be firmed up.