Ørsted (ORSTED) Q4 2024 earnings summary

Executive summary

• 2024 EBITDA excluding new partnerships and cancellation fees reached DKK 24.8 billion, in line with guidance, while total EBITDA including these items was DKK 32 billion, one of the highest in company history.

• DKK 15.6 billion in impairments were recorded, mainly related to the U.S. offshore wind portfolio.

• Net reversal of DKK 7.3 billion in cancellation fees, mainly from Ocean Wind 1 & FlagshipONE settlements.

• 2.4 GW of new renewable capacity commissioned, including 1.0 GW offshore and 1.4 GW onshore; 3.5 GW awarded in UK AR6.

• Closure of last coal-based plant and significant progress on divestments with DKK 22 billion proceeds.

Financial highlights

• FY 2024 EBITDA (excluding new partnerships/cancellation fees) was DKK 24.8 billion, up 3% year-over-year; total EBITDA including these items reached DKK 32 billion.

• Offshore EBITDA up 92% to DKK 26.5 billion; Onshore EBITDA up 30% to DKK 3.9 billion; Bioenergy & Other down 29% to DKK 1.1 billion.

• Operating profit (EBIT) at DKK 6.2 billion, reversing a loss in 2023; net profit at DKK -6.1 billion due to impairments.

• Free cash flow improved to DKK 1.5 billion from DKK -8.4 billion in 2023.

• FFO to net debt ended 2024 at 13%, better than expected but below the >30% target.

Outlook and guidance

• 2025 EBITDA (excluding new partnerships/cancellation fees) expected at DKK 25-28 billion, with growth from offshore ramp-up and grid delay compensation.

• By 2026, EBITDA is projected at DKK 29-33 billion, with ROCE revised to around 13-14% for the period up to 2030.

• Gross investments for 2025 are guided at DKK 50-54 billion, mainly for ongoing construction activities.

• Investment plan for 2030 is set at DKK 210-230 billion, down from DKK 270 billion.

• No dividend payout for 2023-2025; target to reinstate dividend for 2026.