By Orsted, the Danish renewable-energy company, has released its second-quarter earnings, which fell short of expectations. Despite this, the company stands behind its full-year guidance.
Financial Performance
In Q2, Orsted reported a net loss attributable to shareholders of 596 million Danish kroner ($87.8 million), compared to a profit of DKK132 million in the same period last year. Revenue also declined by 37% to DKK16.48 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) excluding new partnerships, which is Orsted’s preferred metric, decreased to DKK3.32 billion from DKK3.62 billion.
Consensus Expectations
According to FactSet consensus estimates, analysts were anticipating a net profit of DKK253 million and EBITDA (excluding new partnerships) of DKK3.79 billion. Revenue was expected to reach DKK17.66 billion.
Full-Year Guidance
Orsted remains confident in its full-year guidance. The company expects EBITDA (excluding new partnership agreements) to range between DKK20 billion and DKK23 billion. However, it now predicts higher earnings in its offshore business compared to previous projections. Conversely, it anticipates a decline of approximately DKK4 billion in earnings for its combined heat and power plants compared to 2022, rather than the previously estimated DKK3 billion.
Gross investments for the year have also been adjusted. They are now projected to be between DKK44 billion and DKK48 billion, as opposed to the previous range of DKK50 billion to DKK54 billion. The revision is mainly due to timing.
Looking ahead to 2023, Orsted expects significantly higher earnings in its offshore business compared to 2022. Onshore earnings are expected to remain steady, while the bioenergy unit’s earnings are forecasted to decrease significantly.
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