Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Wind farm developer Orsted confident about strategy after Q1 profit rises

Published 02/05/2024, 11:46
Updated 02/05/2024, 11:52
© Reuters. FILE PHOTO: A view of the turbines at Orsted's offshore wind farm near Nysted, Denmark, September 4, 2023. REUTERS/Tom Little/File Photo

By Louise Rasmussen

COPENHAGEN (Reuters) - Orsted, the world's biggest offshore wind farm developer, reported on Thursday a rise in first-quarter operating profit thanks to higher earnings from its offshore wind farms, and confirmed its full-year guidance.

The offshore wind industry has been struggling with rising inflation, interest rate hikes and supply chain delays.

Following a strategic review of its business, Orsted, which is 51%-owned by the Danish state, trimmed in February its investment and capacity targets, paused dividend payouts, and its finance and operations chiefs stepped down.

"I am confident that we are on track to deliver on our business plan going forward," CEO Mads Nipper told reporters.

Group profit before interest, tax, depreciation and amortisation (EBITDA) and excluding new partnerships rose 8% from a year earlier to 7.49 billion crowns ($1.08 billion), roughly matching a mean forecast of 7.44 billion in a poll of analysts provided by Orsted.

Orsted, which operates and develops wind farms, said profit from offshore farms grew 18% to 6.93 billion crowns helped by higher wind speeds and a ramp-up of power generation at its Greater Changhua 1 and 2a farms in Taiwan, and South Fork off New York State.

Its shares were up 1.5% at 1009 GMT, taking a rise since a seven-year low in October to nearly 60%.

"We remain focused on project execution and on de-risking the continued supply chain challenges in the industry," Nipper said in a statement.

© Reuters. FILE PHOTO: A view of the turbines at Orsted's offshore wind farm near Nysted, Denmark, September 4, 2023. REUTERS/Tom Little/File Photo

Orsted repeated a forecast for full-year EBITDA excluding new partnerships of between 23 billion and 26 billion crowns.

($1 = 6.9582 Danish crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.