Reading Time: 2 minutes
Ørsted CEO Rasmus Errboe highlights strong 2024 performance, successful Ocean Wind contract renegotiation, and a DKK 7.3 billion fee reversal. Despite industry challenges, Ørsted adjusted its investment plan and secured DKK 22 billion in divestments. He thanked employees for their dedication and remains optimistic about Ørsted’s role in accelerating the renewable energy transition.
Guidance
In 2025, EBITDA excluding new partnership agreements and cancellation fees is expected to be DKK 25-28 billion, and gross investments are expected to be DKK 50-54 billion.
Results 2024
Operating profit (EBITDA) for 2024 amounted to DKK 32.0 billion compared to DKK 18.7 billion in 2023, of which DKK 7.3 billion related to a net reversal of provisions for cancelled projects. EBITDA excluding new partnerships and cancellation fees amounted to DKK 24.8 billion, an increase of DKK 0.7 billion compared to 2023 and in line with our guidance of DKK 24-26 billion.
Earnings from our offshore sites amounted to DKK 23.8 billion, which was an increase of DKK 3.6 billion compared to 2023. The increase was driven by the ramp-up of generation at our offshore wind farms Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, higher wind speeds, and higher prices on our inflation-indexed CfDs and green certificates.
In 2024, we recognized impairments of DKK 15.6 billion, with the majority (DKK 14.1 billion) relating to our US projects and stemming from our decision to cease construction of FlagshipONE (DKK 1.5 billion). The US impairments were driven by an increase in the US long-dated interest rate, a lower market-informed valuation of our US seabeds, construction delays, and higher expected costs for our US projects Revolution Wind and Sunrise Wind.
Profit for the year amounted to DKK 0.0 billion. Excluding impairments (after tax) and cancellation fees, profit for the year was DKK 6.4 billion.
Return on capital employed (ROCE) came in at 4.5%. ROCE adjusted for impairment losses and cancellation fees was 10.1%.
| Q4 2024 | Q4 2023 | % | 2024 | 2023 | % | |
| EBITDA | 8,353 | (686) | n.a. | 31,959 | 18,717 | 71 % |
| – New partnerships | (127) | 317 | n.a. | (127) | 4,324 | n.a. |
| – Cancellation fees | 926 | (9,621) | n.a. | 7,335 | (9,621) | n.a. |
| – EBITDA excl. new partnerships and cancellation fees | 7,554 | 8,618 | (12 %) | 24,751 | 24,014 | 3 % |
| Impairments | (12,127) | 1,647 | n.a. | (15,563) | (26,775) | (42 %) |
| Profit (loss) for the period | (6,084) | (284) | n.a. | 16 | (20,182) | n.a. |
| Cash flow from operating activities | 10,306 | 6,170 | 67 % | 18,356 | 28,532 | (36 %) |
| Gross investments | (17,114) | (13,039) | 31 % | (42,808) | (38,509) | 11 % |
| Divestments | 13,317 | 1,861 | 616 % | 15,680 | 1,542 | 917 % |
| Free cash flow | 6,509 | (5,008) | n.a. | (8,772) | (8,435) | 4 % |
| Net interest-bearing debt | 58,027 | 47,379 | 22 % | 58,027 | 47,379 | 22 % |
| FFO/adjusted net debt | 13.2 | 28.6 | (15 %p) | 13.2 | 28.6 | (15 %p) |
| ROCE | 4.5 | (14.2) | 19 %p | 4.5 | (14.2) | 19 %p |
