ORSTED A/S EBITDA for 2020
Based on our preliminary and unaudited reporting, we expect an operating profit (EBITDA) of
The increase in earnings is primarily of temporary nature, but we have also seen strong operational performance throughout the Group in the last months of the year. We achieved higher than expected earnings from our operating assets and trading related to hedging of our power exposures, and we saw positive temporary effects in our gas portfolio business due to higher gas prices at year-end. In addition, fixed costs came in lower than expected throughout the Group, and we had lower than expected project development costs in the US, mainly due to timing.
Financial outlook 2021
Group EBITDA guidance
Operating profit (EBITDA) excluding new partnership agreements is expected to be
| Outlook 2021, DKKbn | 2020 realised1 | 2020 realised excl. RBC1,2 | 2021 guidance3 | |||||||||
| EBITDA | 18.0 | 17.1 | 15-16 | |||||||||
| Offshore | 14.8 | 14.8 | Lower | |||||||||
| Onshore | 1.1 | 1.1 | Higher | |||||||||
| Markets & Bioenergy | 2.1 | 1.2 | Lower | |||||||||
| 1 Business performance principle | ||||||||||||
| 2 Without the Danish power distribution, residential customer, and city light businesses (RBC) | ||||||||||||
| 3 Without new partnerships; relative to 2020 excl. RBC | ||||||||||||
As in previous years, our EBITDA guidance does not include earnings from new partnership agreements as it is difficult to predict the exact timing of potential farm-downs as well as the distribution of income between years if the partnership includes a construction agreement.
In terms of new partnerships in 2021, we expect to close the 50 % farm-down of Greater Changhua 1 following the agreement announced in
We had no earnings from new partnership agreements in 2020, while EBITDA from existing partnerships is expected to amount to
In 2020, we divested our Danish power distribution, residential customer, and city light businesses. These contributed with
| 2020 realised & 2021 guidance | DKKbn | |||||||||||
| 2020 realised | 18.0 | |||||||||||
| Danish power distribution, residential customer and city light business | -0.9 | |||||||||||
| Existing offshore partnerships | -1.6 | |||||||||||
| 2020 comparable | 15.5 | |||||||||||
| Offshore1 | Lower | |||||||||||
| Onshore1 | Higher | |||||||||||
| Markets & Bioenergy1 | Lower | |||||||||||
| IFRS 9 one-off effects | 1.0 | |||||||||||
| 2021 guidance | 15.0-16.0 | |||||||||||
| 1 Excl. IFRS 9 one-off effects |
Directional business unit guidance
Earnings in Offshore (excluding new partnership agreements) are expected to be lower than in 2020. Earnings are also expected to be lower than in 2020 adjusted for the non-repetition of earnings from existing partnerships in 2020 (approx.
Earnings in Onshore are expected to be higher than in 2020 driven by increased earnings from new wind and solar farms coming online, net of the assumed reduction in site earnings from the possible farm-down of our solar PV portfolio. The increased operational earnings will be partly offset by higher costs related to the strategic expansion of the business and an adverse year-on-year impact from recognition of derivatives.
Earnings in Markets & Bioenergy (excluding the divested Danish power distribution, residential customer, and city light businesses), are expected to be lower than in 2020. The positive effects from revaluation of gas at storage caused by the increasing gas prices, especially during Q4 2020, is expected to partly reverse in 2021.
Cease to report on business performance principle from 2021
From 2021, we will cease using our supplementary business performance principles and only report our financials based on IFRS. This will simplify our reporting and comply with future reporting requirements.
The transition entails that the market value of our business performance hedges (related to commodities and related FX) deferred to a future period at the end of 2020 will cease to exist as it has already been recognised in the income statement according to IFRS.
For 2021, EBITDA according to IFRS is expected to be approx.
Ørsted will publish its annual report for 2020 on
For further information, please contact:
Media Relations
Martin Barlebo
+45 99 55 95 52
Investor Relations
Allan Bødskov Andersen
+45 99 55 79 96
Ørsted’s vision is to create a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks #1 in Corporate Knights’ 2020 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in
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