Q1 2025 Oersted A/S Earnings Call Transcript
Key Points
- Orsted AS (DNNGY) reported a solid operational performance with a group EBITDA increase of 18% compared to last year.
- The company successfully completed the 50% farm-down of two solar farms in the US and a part of the West of Duddon Sands offshore wind farm in the UK, generating proceeds of around DKK7 billion.
- Orsted AS (DNNGY) commissioned the Gode Wind 3 project, marking the installation of over 10 gigawatts of offshore wind capacity.
- The renewable share of Orsted AS (DNNGY)'s generation reached 99% in the first quarter, driven by the closure of a large coal-fueled CHP plant.
- The company reported a significant reduction in the total recordable injury rate from 2.9% last year to 1.9% this year, reflecting a strong focus on safety.
- Orsted AS (DNNGY) faces challenges in the offshore wind industry due to supply chain issues, regulatory uncertainty, and macroeconomic developments.
- The company decided to discontinue the development of the 2.4 gigawatt Hornsea 4 project in the UK due to adverse developments, including cost increases and higher interest rates.
- The imposition of a 25% tariff on imports of steel and aluminum in the US has led to increased costs and an additional impairment of DKK1.2 billion for Orsted AS (DNNGY).
- The company's net interest-bearing debt increased by approximately DKK10 billion during the quarter, reaching DKK68.4 billion.
- Orsted AS (DNNGY) anticipates a potential negative impact on EBITDA of approximately DKK3 billion to DKK3.5 billion in the next quarter due to the discontinuation of Hornsea 4.
Ladies and gentlemen, welcome to the Ãrsted Q1 2025 earnings call. (Operator Instructions) Today's speakers are Group President and CEO, Rasmus Errboe; and CFO, Trond Westlie. Speakers, please begin.
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Hello, everyone, and thank you for joining today's presentation. During the first quarter of the year, we have focused on execution of the business plan that we presented in February. As part of the updated plan, we established four key business priorities for us which will be the core focus as we execute on our strategy.
First, it is the strengthening of our capital structure. Secondly, it is the delivery of more than 8 gigawatts offshore construction portfolio. And thirdly, it is a focused and disciplined approach towards capital allocation with value over volume. And finally, we will ensure that Ãrsted is even more competitive in the future.
We will continue to focus on progressing all four
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