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Balance Sheet: Ørsted Operating Result and Profit Decline Significantly in Q1 2021

Fredericia, Denmark - Danish energy company Ørsted has published its figures for the first quarter of 2021 (Q1 2021). The operating result (EBITDA) is burdened by a lower wind volume and cable problems at some wind farms. The RENIXX group's share price drops significantly.

Ørsted's earnings before interest, taxes, depreciation, amortisation and other financial expenses (EBITDA) for the first quarter of the year amounted to DKK 4.9 billion (approx. EUR 660 million). Compared to the same quarter last year, this is a decrease of DKK 1.9 billion (approx. EUR 255 million) or 28 per cent (Q1 2020: approx. DKK 6.8 billion / approx. EUR 914 million). Net profit of DKK 1.6 billion (approx. 215 million euros) is down approx. 50 per cent year-on-year (Q1 2020: DKK 3.32 billion / approx. 447 million euros).

According to Ørsted, the decline is due to several reasons. On the one hand, income from a construction contract in connection with the Hornsea-1 wind farm and from the sale of business units in Denmark are omitted. In addition, the wind conditions in Q1 2021 were not as strong as in the very good quarter of the previous year, so that on balance earnings are only at the previous year's level despite an increase in wind energy capacity. In addition, the Q1 2021 result is affected by a warranty provision of DKK 0.8 billion (approx. EUR 108 million) related to issues with cable protection systems at some of Ørsted's offshore wind farms.

Despite the Covid 19 pandemic, Ørsted maintains its full-year EBITDA guidance of DKK 15-16 billion (approx. EUR 2.0-2.15 billion). In addition, Ørsted reiterates the current company expectation for gross investments for the full year of DKK 32-34 billion (EUR 4.3-4.6 billion).

The Ørsted share, which is listed in the renewable share index RENIXX World, fell significantly in yesterday's trading. At the end of the trading day, the Orsted share closed with a minus of 6.7 per cent at 121.25 euros (29.04.2021, Stuttgart Stock Exchange). Over the year, the share price actually is down 27.6 percent.



Source: IWR Online, 30 Apr 2021