Oersted A/S
SWB:D2G
Oersted A/S
In the realm of renewable energy, Ørsted A/S has etched its identity as a prominent player, heralding a new era of sustainable power generation. Anchored in Denmark, Ørsted has artfully transformed its business from fossil fuels to a green energy powerhouse, primarily by capitalizing on its expertise in offshore wind farms. This transition is a testament to their strategic foresight, as they once leaned heavily on oil and gas exploration. However, embracing renewables fully by 2017, the company is now a world leader in offshore wind energy, which forms the backbone of its business model. Ørsted earns revenue by developing, constructing, and operating offshore wind farms, selling the generated electricity to power companies and directly to end-users, fulfilling an ever-growing global appetite for cleaner energy sources.
The company’s proficiency in this sector is not confined to wind energy alone. Ørsted has also delved into other renewable technologies, including bioenergy and solar power, albeit at a smaller scale compared to its wind operations. It is further diversifying its portfolio with innovation and research into green hydrogen, positioning itself as not just a participant but a transformative force in the energy sector. By capitalizing on the green transition and forging long-term partnerships, Ørsted is not only contributing to reducing global carbon emissions but also securing a steady and lucrative flow of income. Through strategic partnerships and innovative financial solutions, Ørsted manages its capital-intensive projects, ensuring a robust pipeline of future work that promises sustained growth in a market eager for sustainable energy leadership.
In the realm of renewable energy, Ørsted A/S has etched its identity as a prominent player, heralding a new era of sustainable power generation. Anchored in Denmark, Ørsted has artfully transformed its business from fossil fuels to a green energy powerhouse, primarily by capitalizing on its expertise in offshore wind farms. This transition is a testament to their strategic foresight, as they once leaned heavily on oil and gas exploration. However, embracing renewables fully by 2017, the company is now a world leader in offshore wind energy, which forms the backbone of its business model. Ørsted earns revenue by developing, constructing, and operating offshore wind farms, selling the generated electricity to power companies and directly to end-users, fulfilling an ever-growing global appetite for cleaner energy sources.
The company’s proficiency in this sector is not confined to wind energy alone. Ørsted has also delved into other renewable technologies, including bioenergy and solar power, albeit at a smaller scale compared to its wind operations. It is further diversifying its portfolio with innovation and research into green hydrogen, positioning itself as not just a participant but a transformative force in the energy sector. By capitalizing on the green transition and forging long-term partnerships, Ørsted is not only contributing to reducing global carbon emissions but also securing a steady and lucrative flow of income. Through strategic partnerships and innovative financial solutions, Ørsted manages its capital-intensive projects, ensuring a robust pipeline of future work that promises sustained growth in a market eager for sustainable energy leadership.
EBITDA Growth: Ørsted reported a first-quarter EBITDA of DKK 8.9 billion, up 18% year-on-year, driven by strong operational performance.
Guidance Reiterated: The company maintained its full-year 2025 EBITDA guidance of DKK 25–28 billion, despite lower-than-expected offshore wind speeds.
Hornsea 4 Discontinued: Management discontinued the Hornsea 4 offshore wind project in its current form, citing supply chain cost inflation and higher interest rates, but retained key project rights.
Divestments Support Capital: Recent asset divestments generated DKK 7 billion in proceeds, supporting the company's capital structure.
US Project Progress: Revolution Wind and Sunrise Wind projects in the US Northeast are progressing, with degrees of completion at 75% and 35% respectively.
Impairments from US Tariffs: New US steel and aluminum tariffs led to a DKK 1.2 billion impairment on US projects.
ROCE Under Pressure: Return on capital employed declined due to higher capital employed during a growth phase, with management reaffirming longer-term targets.
Operational Safety: Total recordable injury rate improved to 1.9% from 2.9% last year, despite two contractor fatalities.
