Q2 2024 Oersted A/S Earnings Call Transcript
Key Points
- Orsted A/S (DNNGY) reported a 59% increase in EBITDA for Q2 2024, totaling DKK5.3 billion, driven by higher earnings from offshore sites.
- The company commissioned around 2 gigawatts of renewable capacity in Q2, contributing to its long-term target of 35-38 gigawatts by 2030.
- Orsted A/S (DNNGY) has a fully funded business plan and maintains its full-year EBITDA guidance of DKK23 billion to DKK26 billion.
- The company has made significant progress in its offshore wind projects, including the commissioning of Greater Changhua 1 and 2a, South Fork, Eleven Mile, and Helena Energy Center.
- Orsted A/S (DNNGY) has entered into a partnership to advance four stand-alone battery energy storage systems in the US Midwest, diversifying its technology portfolio.
- The Revolution Wind project in the US has faced delays due to higher-than-anticipated soil contamination, leading to an impairment of DKK2.1 billion.
- The company has decided to discontinue the liquid e-fuels project Flagship 1, resulting in a provision for cancellation fees of DKK0.3 billion and an impairment of DKK1.5 billion.
- Valuation indications for the Ocean Wind 1 seabed led to an impairment of DKK0.6 billion in Q2.
- The Sunrise Wind project faces a potential delay in commissioning from the end of 2026 into the first half of 2027, posing a risk to project timelines.
- Orsted A/S (DNNGY) has lowered its gross investment guidance by DKK4 billion to DKK44 billion-DKK48 billion, driven by timing effects pushing CapEx spend into 2025.
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Thank you very much for joining our earnings call. During the second quarter, we continued to execute on our business plan and our Q2 earnings are supporting our guidance for the year.
We continue to undertake the necessary prioritizations within our business and have seen progress on several risk mitigating initiatives. Furthermore, we see that our operations performed well. Despite continued industry challenges and an unsatisfactory project-specific issue at our legacy US offshore project Revolution Wind, our long-term financial targets remain unchanged, and we have a fully funded business plan.
Looking at our financials for the second quarter. Our underlying business continues to perform well, and our operational portfolio continues to deliver strong earnings. EBITDA, excluding new partnerships and cancellation fees, totaled DKK5.3 billion in Q2, an increase of 59% versus Q2 of 2023. The main driver for this increase was higher earnings from our
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