Q2 2026 Oersted A/S Earnings Call Transcript
Key Points
- Orsted AS (DNNGY) delivered a strong operational performance in H1 2026, with EBITDA excluding new partnerships and cancellation fees reaching DKK15 billion, an increase of over DKK1 billion compared to H1 2025.
- The company is making solid progress on its 8.1 GW offshore wind construction portfolio, with all projects on time and on budget, including the expected commissioning of 2.5 GW this year.
- Orsted AS (DNNGY) maintains a robust financial position with an FFO to adjusted net debt ratio of approximately 45%, well above its 30% target, and a liquidity reserve exceeding DKK115 billion.
- The company has reinstated its dividend policy for 2026, with the initial payout expected to be in the lower part of the DKK2-DKK5 per share range, reflecting a commitment to shareholder returns.
- Orsted AS (DNNGY) sees a positive long-term outlook for offshore wind in Europe, supported by the 300 GW North Sea buildout target and improved regulatory frameworks in key markets like Denmark, UK, and Poland.
- The divestment of the European Onshore business and the expected closing of the Greater Changhua 2 stake sale are strengthening the company's capital structure and financial flexibility.
- Orsted AS (DNNGY) incurred a non-cash impairment loss of DKK1.2 billion in Q2 2026 related to its US offshore project, driven by an increase in long-dated US interest rates.
- The company faces ongoing regulatory and legal uncertainties in the US offshore wind market, including potential tariffs and Section 232 issues, which could impact project economics.
- Orsted AS (DNNGY) reported a slight decrease in earnings from its Onshore business in Q2 2026, primarily due to the non-repetition of a one-off sale of components from the prior year.
- The company's Bioenergy & Other segment saw lower contributions from ancillary services and a provision related to gas storages, leading to a downward revision in its full-year guidance for this segment.
- Orsted AS (DNNGY) experienced an increase in its total recordable injury rate in H1 2026, partly due to a one-off food poisoning incident, highlighting ongoing safety challenges.
- The company's return on capital employed (ROCE) decreased to 6.6% (adjusted) from the prior year, reflecting lower EBITDA and higher capital employed, indicating pressure on capital efficiency.
Ladies and gentlemen, welcome to the Oersted interim report for the second quarter of 2026 conference call. I am [Hiri], the Chorus Call operator. (Operator Instructions)
At this time, it's my pleasure to hand over to Group President and CEO, Rasmus Errboe; and CFO, Trond Westlie. Please go ahead.
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Thank you very much. Hello, everyone, and thank you for joining today's call. The first half of 2026 has once again reminded us how quickly geopolitical tensions can impact global energy markets. The volatility has underlined the importance of European energy independence, which cannot be taken for granted.
But these challenges also represent an opportunity for Europe to strengthen competitiveness for businesses through electrification and lowering of energy costs. An opportunity to ramp up production of homegrown, affordable and reliable energy so global shocks to energy markets do not limit prosperity.
Renewable energy is central to this
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