Photo: Ørsted

Ørsted’s operational wind farms give 14% boost to 2020 earnings

Ørsted’s earnings from operational offshore and onshore wind farms saw a 14% increase in 2020, driven by the ramp-up of power generation from the Hornsea One and Borssele 1&2 projects, amongst others.

In its annual report for 2020, Ørsted states that the earnings from wind farms in operation increased to DKK 16.9 billion (approximately €2.27 billion).

The operating profit (EBITDA) amounted to DKK 18.1 billion, a 4 % increase compared to last year and above the company’s most recent guidance of DKK 16-17 billion. Net profit amounted to DKK 16.7 billion.

The year-on-year development is said to be positively impacted by the receipt of Contracts for Difference (CfDs) of another 400 MW of Hornsea One from April and higher wind speeds.

In addition, at the end of 2020, the Danish company commissioned Borssele 1&2, its first offshore wind farm in the Netherlands.

Ørsted added that the continued ramp-up of offshore and onshore wind farms also drove its green share of heat and power generation which reached an all-time high of 90% in 2020.

“Ørsted delivered a strong set of results in 2020, both operationally and financially. Despite the challenges posed by COVID-19, our colleagues have done an outstanding job to keep our energy production assets fully operational at normal availability rates,” said Mads Nipper, Group President and CEO of Ørsted.

“During 2020, we’ve also commissioned five new wind farms and managed to move our construction projects forward. This demonstrates the resilience of our business model and the skills and spirit of our people.”

In 2021, Ørsted expects EBITDA to be DKK 15-16 billion. Gross investments are expected to amount to DKK 32-34 billion, reflecting a high level of construction activity related to offshore wind, onshore wind, and solar PV projects.