Bulletin: Orsted's Results Withstand Lower Wind Speed And Earnings In 2022 Are Set To Improve

STOCKHOLM (S&P Global Ratings) Feb. 2, 2022--Although lower wind speeds resulted in lower earnings for its largest and most important offshore wind division (about 75% of 2021 EBITDA), Orsted A/S continues to enjoy good rating headroom, said S&P Global Ratings today. Our adjusted EBITDA for Orsted was about Danish krone (DKK)16 billion, excluding partnerships approximately €2.1 billion), in line with the rating base case, even though offshore wind division results were lower than we had assumed, with EBITDA about DKK10.5 billion compared with DKK13.2 billion in 2020 (both adjusted for asset sales). This is because of 9% lower wind speed compared with 2020 (9.1 meters per second), with broadly unchanged installed capacity of 7.6 gigawatts. We view this as a

...February 2, 2022 STOCKHOLM (S&P Global Ratings) Feb. 2, 2022--Although lower wind speeds resulted in lower earnings for its largest and most important offshore wind division (about 75% of 2021 EBITDA), Orsted A/S continues to enjoy good rating headroom, said S&P Global Ratings today. Our adjusted EBITDA for Orsted was about Danish krone (DKK)16 billion, excluding partnerships approximately 2.1 billion), in line with the rating base case, even though offshore wind division results were lower than we had assumed, with EBITDA about DKK10.5 billion compared with DKK13.2 billion in 2020 (both adjusted for asset sales). This is because of 9% lower wind speed compared with 2020 (9.1 meters per second), with broadly unchanged installed capacity of 7.6 gigawatts. We view this as a seasonal effect, rather than any structural change in wind speed, but it highlights Orsted's inherent exposure to generated volumes, which could repeat from time to time. Moreover, the effect was fully compensated by improved...

Bulletin