By Dominic Chopping
Orsted full-year earnings landed within its guidance range despite a 12.1 billion Danish kroner ($1.69 billion) impairment in the fourth quarter amid higher costs at its Sunrise Wind project in the U.S. and increased financing costs.
The Danish renewable-energy company said late Monday that its Sunrise Wind project off the coast of New York is navigating supply chain and construction challenges, which have resulted in delays and increased costs and will lead to an impairment of 4.3 billion kroner.
The expected commissioning of the project has been delayed into the second half of 2027. The project had been expected to be operational in 2026.
In addition, the company booked a 4.3 billion kroner impairment as its U.S. portfolio was hit by a rise in U.S. financing costs, while a revaluation of seabed leases off the coasts of New Jersey, Maryland, and Delaware has resulted in a 3.5 billion kroner impairment.
"The impairments announced today, and especially the continued construction challenges, are very disappointing," said Chief Executive Mads Nipper.
"We remain committed to the U.S. market in the long term with its potential for renewables to meet the growing electricity demand and create thousands of industrial jobs across the U.S."
The company said its preliminary profit before interest, tax, depreciation and amortization, and excluding new partnerships and cancellation fees, was 24.8 billion kroner for the full year of 2024. That puts it within the previously guided range of between 24 billion and 26 billion kroner.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
01-21-25 0205ET
