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Ørsted reports strong 2020 results

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Ørsted has reported ‘very strong results’, operationally and financially for 2020.

The firm’s operating profit (EBITDA) amounted to DKK 18.1 billion (€2.43 billion), a 4% increase compared to the previous year and above its most recent guidance of DKK 16-17 billion (€2.1-2.2 billion).

Earnings from offshore and onshore wind farms in operation increased by 14% to DKK 16.9 billion (€2.27 billion), driven by a ramp-up of power generation from Hornsea 1, Borselle 1 & 2, Lockett, Sage Draw, Plum Creek, and Willow Creek. Additionally, Ørsted’s year-on-year development was positively impacted by the receipt of CfDs of another 400 MW of Hornsea 1 from April, and higher wind speeds. This was partly offset by adverse COVID-19 impacts on especially the UK power market and lower earnings from trading activities.

Ørsted operates several biomass plants, including Asnæs Power Station, which was converted to run on sustainably-sourced woodchips and inaugurated in August last year.

The firm closed the divestments of its Danish power distribution, residential customer, and city light businesses. The transaction resulted in proceeds of DKK 20.5 billion (€2.7 billion) and a gain of DKK 10.9 billion (€1.46 billion), which will be deployed into its global renewable energy build-out plan.

Ørsted’s green share of heat and power generation continued to increase and reached an all-time high of 90% in 2020, driven by its continued ramp-up of offshore and onshore wind farms.

Mads Nipper, group president and CEO of Ørsted, said: “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.

“During 2020, we’ve almost 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. Safety continues to remain our key priority, and we continue to do our utmost to keep our colleagues safe across our locations.

“In January, we were named the world’s most sustainable energy company for the third consecutive year, and our focus on sustainability remains stronger than ever. We are fully on track with our plan to reduce our greenhouse gas emissions to become carbon neutral as a company in 2025.”