Denmark-based renewable energy project developer Ørsted has reported a net loss of DKK 538 million (~$78.29 million) in the second quarter (Q2) of 2023, compared to a profit of DKK 269 million (~$39.14 million) in Q2 2022.

The loss could be attributed to increased financial expenses driven by exchange rate adjustments related to internal loans and a considerable drop in revenues.

The company’s revenue registered a drop of 37% year-over-year (YoY) in Q2 2023 and stood at  DKK 16.48 billion (~$2.39 billion). The revenue drop was mainly due to lower prices and volumes of natural gas sold during the period. It was also significantly impacted due to the drop in revenue from offshore and onshore wind sites.

The revenue from offshore wind sites amounted to DKK 11.5 billion (~$1.67 billion), a decrease of 34% YoY.

Also, the revenue from onshore wind sites reduced by 14% YoY and amounted to DKK 600 million (~$87.31 million) in Q2 2023.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at DKK 3.3 billion (~$480.21 million), a decline of 8% YoY.

EBITDA from offshore wind sites amounted to DKK 2.98 billion (~$433.64 million), an increase of 56.4% YoY. The increase was mainly due to the ramp-up of generation from Greater Changhua 1 and 2a in Q2 2023, higher prices on the inflation-indexed contracts for differences (CFD) and renewable obligation certificate (ROC) wind farms, lower balancing, and a lower negative impact from hedges.

EBITDA from the onshore business amounted to DKK 792 million (~$115.25 million), a decrease of 26.3% YoY. The ramp-up of generation from new assets was more than offset by lower prices, especially in the UK and Ireland, and lower generation in the U.S. due to lower availability and wind speeds.

Commenting on the results, Mads Nipper, Group President and CEO, said, “During the quarter, we achieved a number of significant milestones within our offshore wind portfolio. In the UK, we were delighted to confirm that Hornsea 4 offshore wind farm has been granted its development consent order. With a capacity of up to 2.6 GW, the project will by itself be one of the world’s largest offshore wind farms and be part of the Hornsea zone with a total capacity of more than 7 GW. In Ireland, we have signed an agreement to jointly develop an Irish offshore wind portfolio in a landmark deal with Ireland’s leading utility, ESB.”

1H 2023

The company reported a net profit of DKK 2.66 billion (~$387.07 million) in 1H 2023, a drop of 55.3% YoY. The decrease was mainly due to the lower EBITDA from onshore projects, higher depreciation, and higher net financial expenses.

The company’s revenue stood at DKK 45.85 billion (~$6.67 billion) in 1H 2023, a drop of 23.66% YoY. The decrease was primarily driven by significantly lower power and gas prices across all markets.

The EBITDA figures for 1H 2023 stood at DKK 10.23 billion (~$1.49 billion), a drop of 21.57% YoY.

EBITDA from offshore wind sites amounted to DKK 8.39 billion (~$1.22 billion), an increase of 7.2% YoY. The improvement in Q2 contributed to the increased earnings for the 1H period.

Further, EBITDA from onshore wind sites amounted to DKK 1.63 billion (~$237.19 million), a decrease of 15.53% YoY.

As of June 2023, the company’s total installed and under-construction power project capacity was 20.38 GW, comprising 11.98 GW of offshore wind capacity, 6.25 GW of onshore wind capacity, and 2.15 GW of hydrogen, synthetic natural gas, liquid fuels, and biomass.

In May this year, Ørsted inked a $625 million deal to buy out Eversource Energy’s 50% stake in a federal offshore wind lease area they currently co-own. The deal also covers contracts and partnerships for essential operational assets in the U.S. Northeast.

Earlier in March, Ørsted had acquired the 160 MW Garrenleen solar project from solar project developer Terra Solar in Ireland. It was the company’s second solar project acquisition in Ireland, and it will power up to 56,000 homes annually, making it one of the largest solar farms in the country.