Interim financial report
First half year 2023
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Interim financial report
First half year 2023
Management’s review
Overview
Contents
Earnings call
In connection with the presentation of the interim
financial report, an earnings call for investors and
analysts will be held on Thursday, 10 August 2023
at 15:00 CEST:
Denmark: +45 78 76 84 90
International: +44 203 769 6819
USA: +1 646 787 0157
PIN: 994005
The earnings call can be followed live here:
https://orsted-events.eventcdn.net/events/interim
-report-Q2-2023
Presentation slides will be available prior to the
earnings call and can be downloaded here:
https://orsted.com/financial-reports
Further information
Group Communication
Martin Barlebo
Tel.: +45 99 55 95 52
Investor Relations
Rasmus Keglberg Hærvig
Tel.: +45 99 55 90 95
ESG performance report, H1 2023
CEO’s review ........................................................................................................ 3
At a glance ............................................................................................................ 6
Outlook 2023 ...................................................................................................... 7
Results H1 ............................................................................................................... 8
Results Q2 ............................................................................................................. 11
Business units’ Q2 results............................................................................. 13
Performance highlights ................................................................................ 16
Quarterly overview ......................................................................................... 17
Consolidated statements of income H1 ............................................ 19
Consolidated statements of income Q2 ........................................... 20
Consolidated balance sheet .................................................................... 21
Consolidated statement of shareholders’ equity ....................... 22
Consolidated statement of cash flows ............................................. 23
Notes
1. Basis of reporting .......................................................................................... 24
2. Segment information ................................................................................. 25
3. Revenue .............................................................................................................. 28
4. Other operating income and expenses ......................................... 30
5. Financial income and expenses .......................................................... 30
6. Gross and net investments .................................................................... 31
7. Reserves ............................................................................................................. 31
8. Tax on profit (loss) for the period ...................................................... 32
9. Markets risks .................................................................................................... 33
10. Fair value measurement ....................................................................... 34
11. Interest-bearing net debt and FFO .................................................. 35
12. Financial resources .................................................................................... 37
Management’s statement
Statement by the Executive Board and the Board of Direc-
tors .............................................................................................................................. 38
Financial statements
Consolidated financial statements
3/38
Management’s review
Interim financial report First half year 2023
Construction and operational progress
At Greater Changhua 1 and 2a, we have suc-
cessfully installed all 111 jacket foundations
and 97 wind turbines, of which 69 are now fully
commissioned. The construction work is pro-
gressing and, depending on weather condi-
tions, we aim to install and commission the
remaining 14 turbines in H2 2023.
At South Fork in the US, we have installed the
offshore substation and all the foundations.
The 130 MW wind farm is expected to be
commissioned in Q4 this year in accordance
with the original plan.
In our Onshore business, we are constructing
the combined solar and storage facility Eleven
Mile, the solar farm Mockingbird, and the
onshore wind farm Sunflower, all of which are
progressing according to plan. At the solar
part of Helena Energy Center, we are now
receiving solar panels again and are in the
process of installing them. The project is still
expected to be fully commissioned in 2024.
We’ve broken ground on Europe’s largest e-
methanol project, FlagshipONE. This not only
marks the construction start of the project but
also the first steps in a new green era of ship-
ping, where large-scale methanol production
facilities will supply a constantly growing fleet
of methanol-powered vessels. FlagshipONE is
expected to start production in 2025 and will
produce 50,000 tonnes of methanol yearly.
Our green share of heat and power generation
amounted to 92 %.
Financials
Operating profit (EBITDA) amounted to DKK
10.2 billion in H1 2023, a DKK 2.8 billion de-
crease compared to the same period last year.
EBITDA excluding new partnerships decreased
by DKK 1.2 billion.
Earnings in Offshore increased due to strong
sites earnings, which were positively affected
by ramp-up at Hornsea 2 and Greater Chang-
hua 1 and 2a, and due to the negative impact
from hedges not being repeated.
Earnings in Onshore were slightly down as
ramp-up of generation from new assets was
more than offset by lower wind speeds and
lower prices, especially in the UK and Ireland.
The significantly lower power and gas prices
have substantially reduced earnings in Bioen-
ergy & Other, which came in around breake-
ven.
We maintain our full-year EBITDA guidance of
DKK 20-23 billion excluding earnings from new
partnerships. Compared to our expectations at
the beginning of year, we now expect higher
earnings in Offshore and lower earnings in
Bioenergy. We lower our gross investment
guidance by DKK 6 billion to DKK 44-48 billion
but expect to spend a similar amount on
acquiring ownership shares from PSEG and
Eversource.
CEO’s review
Continued strong financial performance with high earnings in our
offshore business and several new partnerships.
Financials
Operating profit (EBITDA) for the first half
year was in line with our expectations for the
Group and amounted to DKK 10.2 billion.
Earnings from offshore sites in operation
stood strong in the first half year and in-
creased by DKK 3.3 billion compared to the
same period last year. In contrast, earnings
in Bioenergy & Other decreased by DKK 3.2
billion following the very volatile and ele-
vated price levels in 2022.
We maintain our full-year EBITDA guidance
of DKK 20-23 billion. Compared to our ex-
pectations at the beginning of year, we now
expect higher earnings in Offshore and lower
earnings in Bioenergy.
Construction and operational progress
Construction work is progressing at Greater
Changhua 1 and 2a in Taiwan and, depend-
ing on weather conditions, we aim to com-
mission the remaining turbines before year-
end. South Fork in the US is also progressing
and is expected to be commissioned in Q4 .
Our green share of heat and power genera-
tion amounted to 92 %.
Business development
We acquired Eversource’s 50 % interest in
Lease Area 500 in North-eastern USA. This
brings our total lease capacity in the region
up to more than 4 GW.
We entered into a partnership with ESB,
Ireland’s leading utility company, to jointly
develop an Irish offshore wind portfolio. The
partnership has the potential to deliver up to
5 GW.
We received development consent for
Hornsea 4, one of the world’s largest wind
farms with a capacity of up to 2.6 GW.
We entered into an agreement with Green-
coat to divest our remaining 25 % stake in
London Array.
The Danish Energy Agency (DEA) awarded us
a 20-year contract for the carbon capture
and storage (CCS) project ‘Ørsted
Kalundborg Hub’.
We held our CMD in London in June, where
we confirmed our ambition of ~50 GW re-
newable capacity by 2030 and strong finan-
cial outlook.
Highlights
Management’s review
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Interim financial report
First half year 2023
ingful uplift to the OREC price, should it be
approved. We have had positive dialogues
with the authorities, and there is a common
understanding that something needs to hap-
pen in order to support the green energy
transformation in New York.
We have entered into a partnership with ESB,
Ireland’s leading utility company, to jointly
develop an Irish offshore wind portfolio. With
the agreement, we become a 50/50 partner in
a pipeline of offshore wind development
projects off the Irish coast. The partnership has
the potential to deliver up to 5 GW of renewa-
ble energy and complementary renewable
hydrogen projects, and the first of these
offshore wind projects is expected to compete
in the next Irish offshore wind auction.
In July, we received development consent
from the British authorities to continue the
development of our up to 2.6 GW Hornsea 4
offshore wind project. With this consent, the
Hornsea zone, including Hornsea 1, 2, 3, and 4,
will have a total capacity of approx. 7 GW,
making it the world’s largest offshore wind
zone. In the same month, the offshore trans-
mission assets at Hornsea 2 have been divest-
ed to Diamond Transmission Partners Hornsea
Two Limited (DTP) at a value of GBP 1.1 billion
(100 %).
We are happy that the Danish Government
resumed processing some open-door applica-
tions, and that Vikinge Banke, our 1.1 GW
partnership project with CIP, was one of them.
We entered into an agreement with Green-
coat, a leading UK renewable infrastructure
fund, to divest our remaining 25 % stake in
London Array. As we are a minority owner in
Business development
Offshore
We signed an agreement to acquire Ever-
source’s 50 % interest in Lease Area 500, an
uncontracted federal offshore wind lease area
currently owned jointly by the two companies,
at a price significantly lower than the New
York Bight auction and with better wind condi-
tions and shallower water. In addition to the
seabed, the agreement also includes contracts
and leases for strategic port facilities and other
assets in the US Northeast. This acquisition
adds capacity on top of our already awarded
seabed capacity, and now our portfolio of
north-eastern US lease rights amount to more
than 4 GW, making Ørsted’s lease capacity the
largest in the region. The transaction positions
us for future growth with the largest pipeline of
offshore capacity in the region.
At Ocean Wind 1, we received the record of
decision (RoD) from the US Department of the
Interior’s Bureau of Ocean Energy, successfully
reaching a major achievement in the federal
environmental review process. With this mile-
stone, Ocean Wind 1 remains on track to begin
onshore construction activities in the fall of
2023, with offshore construction ramping up in
2024.
We are pleased that New Jersey has approved
Ørsted to retain all federal tax credits. This is
an important and necessary step to continue
with the Ocean Wind 1 project following the
substantial cost increases experienced across
the US offshore projects.
To improve the viability of our Sunrise Wind
project, we have filed a petition to get retro-
spective inflation indexing for the Sunrise
project in New York, which would be a mean-
We signed an agreement to acquire Eversource’s 50 % in-
terest in Lease Area 500, an uncontracted federal offshore
wind lease area currently owned jointly by the two compa-
nies, at a price significantly lower than the New York Bight
auction. This acquisition adds capacity on top of our al-
ready awarded seabed capacity, and now our portfolio of
north-eastern US lease rights amount to more than 4 GW,
making Ørsted’s lease capacity the largest in the region.
”
the wind farm and not responsible for opera-
tion and maintenance, we found it strategical-
ly and financially sound to divest our share at
an attractive valuation that secures an NPV
retention of more than 100 %. The transaction
is expected to close in August.
Bioenergy
The Danish Energy Agency (DEA) has awarded
us a 20-year contract for the carbon capture
and storage (CCS) project ‘Ørsted Kalundborg
Hub’ in Denmark. As part of the project, we
will establish carbon capture technologies at
Asnæs Power Station and Avedøre Power
Station. The CHP plants will begin to capture
and store biogenic carbon during 2025 and will
reach full capacity of approx. 430,000 tonnes
of biogenic CO
2
a year in 2026. In direct sup-
port to the project, Microsoft has agreed to
purchase 2.76 million tonnes of high-quality,
durable carbon removal over 11 years from the
capture and storage of biogenic carbon. This
represents one of the world’s largest carbon
removal offtake agreements by volume to
date.
Strategic update and Capital Markets Day
On 8 June, we held our Capital Markets Day in
London. In connection with the event we
announced several strategic updates and
partnerships.
We confirmed our fully self-funded ambition of
~50 GW installed renewable capacity by
2030 and expect to invest approx. DKK 475
billion in the period 2023-2030. We also con-
firmed our target of an unlevered, fully loaded
lifecycle IRR at 150-300 bps spread to WACC
at the time of bid/FID, whichever comes first.
We expanded our EBITDA CAGR target from
covering offshore and onshore assets in opera-
tion to cover the group-wide EBITDA
(excluding new partnerships) in the period 2023
-2030. Furthermore, we target a group-wide
EBITDA (excluding new partnerships) of DKK
Management’s review
5/38
Interim financial report
First half year 2023
50-55 billion in 2030, corresponding to an
annual average increase of 13-14 %. We
extended our ROCE target to the period
2023-2030, targeting an average ROCE of
approx. 14 % in the period.
We announced an industry-first pioneering
sustainability partnership towards net-zero
wind farms with Vestas. Under the partner-
ship, we will procure low-carbon steel wind
turbine towers and blades made from recy-
cled materials for all joint offshore wind
projects. Furthermore, we entered into a long-
term agreement with Dillinger on the produc-
tion of low-carbon steel. This agreement
enables Dillinger to accelerate their invest-
ment decision for low carbon steel produc-
tion, starting production in 2027/28, and
allowing for a 55 % CO
2
reduction by 2030.
With the new agreement with Dillinger, and
other previously entered sourcing contracts,
we have secured approx. 80 % of our current
need for steel towards 2030. We will contin-
ue to explore similar supply opportunities.
As the first energy developer, we have com-
mitted to reuse or recycle all solar panels
from our global portfolio of solar farms with
immediate effect. By recycling or reusing
solar panels, we will help lower the depend-
ency of virgin materials. Today, reusing and
recycling solar panels are limited, and land-
filling is still common practice. This means
that materials with a high value to the green
energy transition are simply let go to waste.
We welcome the decision from the Danish
Government to reserve 30 % of its marine
area to renewable energy as well tendering
sites for 9 GW plus up to 5 GW of over-
planting with an ambition to make Denmark
a net exporter of renewable energy. It is
crucial that these developments are supple-
mented with a developer-driven expansion,
which could also include P2X.
We’re excited to launch our Youth Panel - a
forum connecting today’s decision-makers
with the climate leaders of tomorrow. The
Ørsted Youth Panel will offer a platform to
bring practical advice and concrete recom-
mendations to our sustainability agenda
directly to our CEO and senior management
in order to challenge and sharpen our ap-
proach to building a world that runs entirely
on green energy.
”
Mads Nipper
Group President & CEO
We confirmed our fully self-funded ambition of ~50 GW in-
stalled renewable capacity by 2030 and expect to invest
approx. DKK 475 billion in the period 2023-2030. We also
confirmed our target of an unlevered, fully loaded lifecycle
IRR at 150-300 bps spread to WACC.
6/38
Interim financial report
First half year 2023
At a glance
Key figures H1 2023
Revenue DKK 45.9 bn
Gross investments DKK 16.3 bn
Capital employed DKK 147.5 bn
TRIR
2.6
ROCE, last 12 months 13.2 %
Ørsted
EBITDA, DKKbn
10.2 (13.0)
1
84 %
0 %
16%
Offshore
Onshore Bioenergy & Other
Green share of energy generation, %
92
92
2022 2023
Offshore
EBITDA, DKKbn
Availability, %
94
93
2022 2023
9.9
9.5
9.8
2022 2023 Norm
6.2
8.4
2022 2023
7.8
8.4
1.6
Wind speed, m/s
Onshore
EBITDA, DKKbn
Availability, wind, %
94
91
2022 2023
7.9
7.4
7.7
2022 2023 Norm
1.9
1.6
2022 2023
Wind speed, m/s
Bioenergy & Other
EBITDA, DKKbn
77
72
2022 2023
3.2
(0.1)
2022 2023
Green share of energy generation, %
Degree days, number
1,589
1,566
1,729
2022 2023 Norm
New partnerships
1 Includes EBITDA from other activities/eliminations, () = last year
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Management’s review
Interim financial report First half year 2023
EBITDA
EBITDA in 2023, excluding new partnership
agreements, is unchanged and still expected
to be DKK 20-23 billion. However, compared
to the guidance provided in our annual report
for 2022, we now expect even higher earnings
in Offshore, whereas we expect earnings for
our CHP plants to decrease by approx. DKK
4.5 billion compared to 2022, rather than ap-
prox. DKK 3 billion.
This guidance is based on an assumption of
normal wind speeds in the remainder of the
year. As always, the guidance is subject to a
number of uncertainties (see box below).
Gross investments
We lower our gross investment guidance for
2023 by DKK 6 billion to DKK 44-48 billion,
primarily due to timing.
However, we expect to spend approx. DKK 6
billion on acquiring PSEG’s ownership share in
Ocean Wind 1 and Eversource’s ownership
share in Lease Area 500. As these transac-
tions are with non-controlling shareholders,
they fall outside of ‘Gross investments’, but
are included in ‘Net investments’.
Our EBITDA guidance for the Group is the prevailing guidance, whereas the directional earnings development
per business unit serves as a means to support this. Higher/lower indicates the direction of the business unit's
earnings relative to the results for 2022.
Outlook 2023, DKK billion
2022
realised
Guidance
1 Feb 2023
Guidance
10 August 2023
EBITDA, without new partnerships 21.1
20-23
20-23
Offshore, without new partnerships 8.6
Significantly
higher
Significantly
higher
Onshore 3.6 In line In line
Bioenergy & Other 8.6
Significantly
lower
Significantly
lower
Gross investments 37.4 50-54 44-48
Guidance
3 May 2023
20-23
Significantly
higher
In line
Significantly
lower
50-54
Outlook 2023
Forward-looking statements
The interim financial report contains forward-looking statements which include projections
of our short- and long-term financial performance and targets as well as our financial poli-
cies. These statements are by nature uncertain and associated with risk. Many factors may
cause the actual development to differ materially from our expectations. These factors
include, but are not limited to, changes in temperature, wind conditions, wake and blockage
effects, precipitation levels, the development in power, coal, carbon, gas, oil, currency, infla-
tion rates, and interest rate markets, the ability to uphold hedge accounting, changes in
legislation, regulations, or standards, the renegotiation of contracts, changes in the compet-
itive environment in our markets, reliability of supply, and market volatility and disruptions
from geopolitical tensions. Read more about the risks in the annual report for 2022 in the
chapter ‘Our risks and risk management’ and in note 6.
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Management’s review
Interim financial report First half year 2023
Financial results
Revenue
Power generation from offshore and onshore
assets increased by 3 % and totalled 15.3 TWh
in H1 2023. The increase was due to ramp-up of
generation from Hornsea 2 (net of the farm-
down) and Greater Changhua 1 and 2a, our
onshore assets Old 300, Ford Ridge, and the
wind part of Helena Energy Center, and the
acquisition of Ostwind in Q4 2022. The ramp-
up generation was partly offset by lower wind
speeds as well as lower availability.
Heat generation decreased by 2 %, whereas
thermal power generation decreased by 19 %,
mainly due to less attractive spreads for pow-
er-condensing generation.
Our green share of generation amounted to
92 %, the same level as last year.
Revenue amounted to DKK 45.9 billion. The
decrease of 24 % relative to H1 2022 was pri-
marily due to the significantly lower power
and gas prices across all markets as well as
lower gas volumes sold.
EBITDA
Operating profit (EBITDA) for the first half year
was in line with our expectations and amount-
ed to DKK 10.2 billion, DKK 2.8 billion lower
than in H1 2022, which was positively impacted
by a gain from the 50 % farm-down of Borkum
Riffgrund 3 (new partnerships) of DKK 1.6 bil-
lion. EBITDA excl. new partnerships was DKK
1.2 billion lower than in H1 2022.
EBITDA from offshore sites amounted to DKK
9.0 billion, an increase of DKK 3.3 billion com-
pared to last year. The increase was mainly
due to ramp-up of generation from Hornsea 2
and Greater Changhua 1 and 2a in H1 2023,
higher prices on the inflation-indexed CfD and
ROC wind farms, lower balancing and BSUoS
costs, good performance by our power trading
activities, and as the negative impact from
hedges in H1 2022 was not repeated. This was
partly offset by lower wind speeds than in H1
2022 and a negative impact on our merchant
exposure due to declining prices after having
lowered our hedge ratios for H1 2023 at a time
when prices were higher than the realised lev-
els in the period.
EBITDA from partnerships amounted to DKK
0.3 billion in H1 2023, mainly from adjustment
of provisions toward partners partly offset by
a reduction in earnings on our construction
agreement on Greater Changhua 1 due to high-
er costs and later commissioning of the wind
turbines. In H1 2022, we had positive earnings
from work for partners at Greater Changhua 1
and from a reversal of DKK 0.5 billion of the
EBITDA excluding new partnerships, DKKbn
Results H1
Financial results, DKKm H1 2023 H1 2022 %
Revenue
45,846 60,057 (24 %)
EBITDA
10,230 13,044 (22 %)
- New partnerships
- 1,610 n.a.
- EBITDA excl new partnerships
10,230 11,434 (11 %)
Depreciation and amortisation
(4,892) (4,432) 10 %
Operating profit (loss) (EBIT)
5,338 8,612 (38 %)
Gain (loss) on divestment of enterprises
328 175 87 %
Financial items, net
(3,316) (1,334) 149 %
Profit (loss) before tax
2,372 7,454 (68 %)
Tax
292 (1,484) n.a.
Tax rate
(12 %) 20 % (32 %p)
Profit (loss) for the period
2,664 5,970 (55 %)
DKK 0.8 billion warranty provision related to
cable protection system issues at some of our
offshore wind farms towards our partners,
recognised in 2021, and an adjustment to
wake loss provisions in our German portfolio.
EBITDA from our onshore business amounted
to DKK 1.6 billion in H1 2023, DKK 0.3 billion
lower than in H1 2022. Ramp-up of generation
from new assets was more than offset by
lower prices in the US, and by lower prices
and the revenue cap introduced in Q4 2022 in
the UK and Ireland, and lower generation in
the US due to lower availability and wind
speeds. The lower availability was due to
component upgrades at Plum Creek and
Sage Draw as well as minor technical issues
at Lincoln Land, Willow Springs, and Hay-
stack.
Offshore (DKK 2.2bn) Onshore
(DKK -0.3bn)
Bio & Other
(DKK -3.2bn)
Management’s review
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Interim financial report
First half year 2023
EBITDA from our CHP plants amounted to DKK
0.6 billion in H1 2023, a decrease of DKK 1.8
billion compared to the same period last year.
The decrease was mainly due to unfavourable
market-based spreads, which led to lower
power-condensing generation. In addition,
earnings from power generation were nega-
tively impacted by the high costs of biomass
and coal relative to the market prices in H1
2023 as the cost is measured using the first in,
first out (FIFO) principle. The fuel we have been
using during H1 2023 was bought last year at
the higher price levels. The opposite was the
case in H1 2022.
EBITDA from our gas business totalled DKK
-0.5 billion in H1 2023, DKK 1.3 billion lower
than in the same period last year. The decrease
was driven by a temporary negative effect
from revaluation of our gas at storage during
H1 2023 and strong earnings in H1 2022. In H1
2022, we were able to lock in gains from opti-
mising the offtake flexibility in some of our
sourcing contracts and storages, which was
partly offset by our decision to unwind gas
hedges related to the Gazprom Export con-
tract.
EBIT
EBIT decreased by DKK 3.3 billion to DKK 5.3
billion in H1 2023. This was mainly due to the
lower EBITDA and a higher depreciation from
more assets in operation.
Financial income and expenses
Net financial income and expenses amounted
to DKK -3.3 billion compared to DKK -1.3 billion
in H1 2022. The higher net expenses were main-
ly due to negative exchange rate adjustments
related to internal loans (no impact on cash
flow and NIBD).
Tax and tax rate
Tax on profit for the period amounted to DKK
0.3 billion, DKK 1.8 billion lower than last year.
The tax rate was -12 % and was affected by a
reversal of a recognised deferred tax liability in
the US related to the tax equity partnership
for Ocean Wind 1 following our agreement in
January to acquire PSEG’s 25 % equity stake.
Profit for the period
Profit for the period totalled DKK 2.7 billion,
DKK 3.3 billion lower than in H1 2022. The de-
crease was mainly due to the lower EBITDA,
higher depreciation, and higher net financial
expenses.
Cash flows and net debt
Cash flows from operating activities
Cash flows from operating activities totalled
DKK 12.6 billion in H1 2023 compared to DKK
2.3 billion in H1 2022.
During H1 2023, we released DKK 6.1 billion,
net, in variation margin payments on unreal-
ised hedges (‘Change in variation margin’) and
initial margin payments at clearing houses
(part of ‘Change in other working capital’) as a
result of falling and less volatile power and
gas prices:
–
The variation margin payments were a
cash inflow of DKK 4.3 billion vs a cash
outflow of 10.5 billion in H1 2022. DKK 2.4
billion of the inflow related to power hedg-
es in Offshore, whereas DKK 1.9 billion of
the inflow related to gas hedges in Bioen-
ergy & Other.
–
The initial margin payments were a cash
inflow of DKK 2.0 billion vs a cash inflow of
DKK 4.0 billion in H1 2022. In H1 2022, we
issued parent company guarantees in total
of EUR 1 billion to reduce our initial margin
payments and, to some extent, variation
margin payments.
In H1 2023, we had a net cash outflow from
work in progress of DKK 2.5 billion, mainly
from construction work at Greater Changhua
1. In H1 2022, we had a net cash outflow of
DKK 2.3 billion, mainly from construction work
at Greater Changhua 1 and the offshore trans-
mission asset at Hornsea 2, partly offset by
received milestone payments from partners at
Borkum Riffgrund 3.
In H1 2023, cash flows from change in tax equi-
ty partner liabilities were more negative than
in H1 2022 due to more assets in operation (tax
credits recognised in EBITDA are reversed in
this line item). There were no significant tax
equity contribution inflows. In H1 2022, we
received tax equity contributions for the wind
part of Helena Energy Center.
Furthermore, ‘Change in other working capital’
was positively impacted by lower receivables
and the lower value of gas at storage due to
Cash flow and net debt, DKKm H1 2023 H1 2022 %
Cash flows from operating activities
12,566 2,318 442 %
EBITDA
10,230 13,044 (22 %)
Reversal of gain (loss) on divestments of assets
(1,303) (1,884) (31 %)
Change in derivatives, excl. variation margin
962 5,314 (82 %)
Change in variation margin
4,296 (10,529) n.a.
Change in provisions
(25) (955) (97 %)
Other items
(45) (154) (71 %)
Interest expense, net
(663) (254) 161 %
Paid tax
(1,496) (519) 188 %
Change in work in progress
(2,509) (2,348) 7 %
Change in tax equity partner liabilities
(1,152) (21) n.a.
Change in other working capital
4,271 624 584 %
Gross investments
(16,266) (13,204) 23 %
Divestments
(2,054) 2,194 n.a.
Free cash flow
(5,754) (8,692) (34 %)
Net interest-bearing debt, beginning of period
30,571 24,280 26 %
Free cash flow
5,754 8,692 (34 %)
Dividends and hybrid coupon paid
6,051 5,692 6 %
Addition of lease obligations, net
549 1,137 (52 %)
Repurchase of hybrid capital, net
699 - n.a.
Net interest-bearing debt, end of period
43,924 41,449 6 %
Exchange rate adjustments, etc.
300 1,648 (82 %)
Management’s review
10/38
Interim financial report
First half year 2023
amounted to a loss of DKK 12.3 billion.
Capital employed
Capital employed was DKK 147.5 billion at the
end of June 2023 against DKK 126.1 billion at
the end of 2022, mainly due to new invest-
ments.
Financial ratios
Return on capital employed (ROCE)
Return on capital employed (ROCE) was 13 %
in H1 2023. The decrease of 2 percentage
points compared to last year was attributable
to a lower EBIT and higher capital employed.
Credit metric (FFO/adjusted net debt)
The funds from operations (FFO)/adjusted net
debt credit metric was 17.7 % in H1 2023
against 39.0 % in H1 2022. The decrease was
primarily due to lower FFO.
ESG results
Green share of energy generation
The green share of heat and power generation
amounted to 92 % in H1 2023, on level with H1
2022, however with a lower share of biomass-
based generation offset by increased share of
generation from onshore and offshore assets.
Greenhouse gas emissions
Our greenhouse gas emissions from heat and
power generation (scope 1 and 2) decreased by
15 % in H1 2023 compared to H1 2022. This was
primarily due to lower coal-based power gen-
eration.
Our scope 1 and 2 greenhouse gas intensity
decreased to 42 g CO
2
e/kWh in H1 2023
against 49 g CO
2
e/kWh in H1 2022. The de-
the falling prices in H1 2023 in addition to the
aforementioned release of initial margin pay-
ments.
Investments and divestments
Gross investments amounted to DKK 16.3 bil-
lion in H1 2023. The main investments were:
–
offshore wind farms (DKK 11.5 billion), in-
cluding Greater Changhua 1 and 2a and
Greater Changhua 2b and 4 in Taiwan, and
our portfolio of US and German projects
–
onshore wind and solar PV farms (DKK 4.6
billion), including the construction of Eleven
Mile, Sunflower Wind, Mockingbird, and our
portfolio of European projects.
In H1 2023, ‘Divestments’ amounted to DKK -2.1
billion and was mainly related to our agree-
ment to acquire PSEG’s 25 % equity stake in
Ocean Wind 1. As this transaction is with a non-
controlling shareholder, it is not included in
'Gross investments', but is part of 'Divestments'.
In H1 2022, divestments amounted to DKK 2.2
billion and were mainly related to the 50 %
farm-down of Borkum Riffgrund 3.
Interest-bearing net debt
Net financial income and expenses amounted
to DKK -3.3 billion compared to DKK -1.3 billion
in H1 2022. The higher net expenses were main-
ly due to negative exchange rate adjustments
related to internal loans (no impact on cash
flow and NIBD).
Equity
Equity was DKK 103.5 billion at the end of June
2023 against DKK 95.5 billion at the end of
2022. At the end of June 2023, the post-tax
hedging and currency translation reserve
crease was mainly driven by the decreased
use of coal in our thermal heat and power
generation as well as higher wind and solar
power generation.
Greenhouse gas emissions from our supply
chain and sales activities (scope 3) was 54 %
lower than in H1 2022, primarily due to a 61 %
reduction in natural gas sales in H1 2023.
Safety
In H1 2023, recordable injuries (TRIs) decreased
by 5 to 32, of which 23 injuries were related to
contractors’ employees. The total recordable
injury rate (TRIR) decreased from 2.8 in H1 2022
to 2.6 in H1 2023.
Key ratios, DKKm, %
H1 2023 H1 2022 %
ROCE
13.2 14.8 (2 %p)
Adjusted net debt 55,564 53,495 4 %
FFO/adjusted net debt 17.7 39.0 (21 %p)
Capital employed
Offshore
Onshore
Bioenergy & Other
DKK 147.5 billion
4 %
23 %
73 %
Taxonomy-aligned KPIs
In H1 2023, the taxonomy-aligned share of
revenue was 85 %, whereas the aligned
share of EBITDA was 102 %, gross invest-
ments was 99 %, and OPEX was 71 %. The
non-eligible part of our revenue primarily
concerned our long-term legacy activities
related to sourcing and sale of gas (8 % of
revenue in H1 2023).
Read more about our EU taxonomy-
aligned KPIs in note 2.1 in the ESG Perfor-
mance Report for H1 2023.
Management’s review
11/38
Interim financial report
First half year 2023
Financial results
EBITDA
Operating profit (EBITDA) for the second quar-
ter amounted to DKK 3.3 billion, DKK 0.3 bil-
lion lower than in Q2 2022. There were no new
partnerships in either quarter.
EBITDA from offshore sites amounted to DKK
3.1 billion, an increase of DKK 1.1 billion com-
pared to last year. The increase was mainly
due to ramp-up of generation from Greater
Changhua 1 and 2a in Q2 2023, higher prices on
the inflation-indexed CfD and ROC wind farms,
lower balancing and BSUoS costs, and a lower
negative impact from hedges. This was partly
offset by lower wind speeds than in Q2 2022.
EBITDA from partnerships amounted to DKK
0.3 billion in Q2 2023, mainly from adjustment
of provisions toward partners partly offset by
a reduction in earnings on our construction
agreement on Greater Changhua 1 due to high-
er costs and later commissioning of the wind
turbines.
EBITDA from our Onshore business amounted
to DKK 0.8 billion and was DKK 0.3 billion low-
er than in Q2 2022. Ramp-up of generation
from new assets was more than offset by low-
er prices, especially in the UK and Ireland, and
lower generation in the US due to lower avail-
ability and wind speeds.
EBITDA from our CHP plants amounted to
DKK -0.2 billion in Q2 2023, a decrease of DKK
0.9 billion compared to the same period last
year. The decrease was mainly due to lower
power prices and unfavourable spreads for
power condensing generation. In addition to
the unfavourable market-based spreads, earn-
ings were negatively impacted by accounting
FIFO effects as the fuel we have been using in
Q2 2023 was bought last year at price levels
above the current market prices. The opposite
was the case in Q2 2022.
EBITDA from our gas business totalled DKK
-0.3 billion in Q2 2023, DKK 0.3 billion lower
than in the same period last year. The de-
crease was to a large extent driven by a tem-
porary negative effect from revaluation of our
gas at storage during Q2 2023.
EBITDA excluding new partnerships, DKKbn
Results Q2
Financial results, DKKm Q2 2023 Q2 2022 %
Revenue
16,477 26,295 (37 %)
EBITDA
3,320 3,615 (8 %)
- New partnerships
- - n.a.
- EBITDA excl new partnerships
3,320 3,615 (8 %)
Depreciation and amortisation
(2,454) (2,304) 7 %
Operating profit (loss) (EBIT)
866 1,311 (34 %)
Gain (loss) on divestment of enterprises
159 67 137 %
Financial items, net
(1,797) (486) 270 %
Profit (loss) before tax
(763) 893 n.a.
Tax
225 (624) n.a.
Tax rate
29 % 70 % (40 %p)
Profit (loss) for the period
(538) 269 n.a.
Cash flows
Cash flows from operating activities
Cash flows from operating activities totalled
DKK 2.4 billion in Q2 2023, same level as in
Q2 2022.
During Q2 2023, we released DKK 3.0 billion,
net, in variation margin payments on unreal-
ised hedges (‘Change in variation margin’) and
initial margin payments at clearing houses
(part of ‘Change in other working capital’) as
a result of falling and less volatile power and
gas prices:
–
The variation margin payments were a
cash inflow of DKK 2.3 billion vs a cash
outflow of 3.6 billion in Q2 2022. DKK 0.5
billion of the inflow related to power
hedges in Offshore and DKK 1.8 billion
related to gas hedges in Bioenergy & Oth-
er.
Offshore
(DKK 1.1bn)
Onshore
(DKK -0.3bn)
Bio & Other
(DKK -1.2bn)
Management’s review
12/38
Interim financial report
First half year 2023
agreement to acquire PSEG’s 25 % equity
stake in Ocean Wind 1. As this transaction is
with a non-controlling shareholder, it is not
included in 'Gross investments', but is part of
'Divestments'.
–
The initial margin payments were a cash
inflow of DKK 0.4 billion vs a cash inflow of
DKK 5.5 billion in Q2 2022. In Q2 2022, we
issued parent company guarantees in total
of EUR 1 billion to reduce our initial margin
payments and, to some extent, variation
margin payments.
In Q2 2023, we had a net cash inflow from
work in progress of DKK 0.1 billion, mainly from
payables related to construction work at
Greater Changhua 1. In Q2 2022, we had a net
cash outflow of DKK 1.4 billion, mainly from
construction work at Greater Changhua 1 and
the offshore transmission asset at Hornsea 2.
In Q2 2023, cash flows from change in tax equi-
ty partner liabilities were more negative than
in Q2 2022 due to more assets in operation (tax
credits recognised in EBITDA are reversed in
this line item). There were no significant tax
equity contribution inflows in Q2 2023. In Q2
2022, we received tax equity contributions for
the wind part of Helena Energy Center.
Investments and divestments
Gross investments amounted to DKK 7.5 billion
in Q2 2023. The main investments were:
–
offshore wind farms (DKK 5.5 billion), includ-
ing Greater Changhua 1 and 2a in Taiwan
and our portfolio of US and German pro-
jects
–
onshore wind and solar PV farms (DKK 1.9
billion), including the construction of Eleven
Mile, Sunflower Wind, Mockingbird, and our
portfolio of European projects.
In Q2 2023, ‘Divestments’ amounted to DKK
-2.0 billion and was mainly related to our
Cash flow and net debt, DKKm Q2 2023 Q2 2022 %
Cash flows from operating activities
2,447 2,355 4 %
EBITDA
3,320 3,615 (8 %)
Reversal of gain (loss) on divestments of assets
(1,180) (21) n.a.
Change in derivatives, excl. variation margin
(2,224) 2,337 n.a.
Change in variation margin
2,325 (3,588) n.a.
Change in provisions
(39) (190) (79 %)
Other items
125 (89) n.a.
Interest expense, net
(362) (37) 878 %
Paid tax
(701) (288) 143 %
Change in work in progress
142 (1,423) n.a.
Change in tax equity partner liabilities
(512) 475 n.a.
Change in other working capital
1,554 1,564 (1 %)
Gross investments
(7,498) (6,372) 18 %
Divestments
(2,038) 267 n.a.
Free cash flow
(7,089) (3,750) 89 %
Net interest-bearing debt, beginning of period
35,261 30,026 17 %
Free cash flow
7,089 3,750 89 %
Dividends and hybrid coupon paid
88 5,411 (98 %)
Addition of lease obligations, net
521 1,084 (52 %)
Exchange rate adjustments, etc.
265 1,178 (78 %)
Net interest-bearing debt, end of period
43,924 41,449 6 %
Repurchase of hybrid capital, net
699 - n.a.
13/38
Management’s review
Interim financial report First half year 2023
Financial results Q2 2023
Power generation decreased by 8 % to 3.0
TWh in Q2 2023. The decrease was due to
lower wind speeds, lower availability, and the
50 % farm-down of Hornsea 2 in Q3 2022, only
partly offset by ramp-up at Greater Changhua
1 and 2a.
Wind speeds amounted to a portfolio average
of 8.1 m/s, which was lower than in Q2 2022
(8.4 m/s) and below the normal wind speeds
expected in the second quarter (8.6 m/s).
Availability ended at 91 %, which was 3 per-
centage points lower than in the same period
last year. This was mainly due to scheduled
outages and curtailment at Hornsea 2.
Revenue decreased by 34 % and amounted to
DKK 11.5 billion.
Revenue from offshore wind farms in operation
decreased by 6 % to DKK 4.5 billion, mainly
driven by lower generation. Revenue from
power sales decreased by 34 % to DKK 6.9
billion, due to significantly lower power prices
and lower volumes sold.
EBITDA increased by DKK 1.1 billion and
amounted to DKK 3.0 billion.
EBITDA from ‘Sites, O&M, and PPAs’ increased
by DKK 1.1 billion and amounted to DKK 3.1
billion in Q2 2023. The increase was due to
ramp-up of generation at Greater Changhua 1
and 2a, higher prices on the inflation-indexed
CfD and ROC wind farms, lower balancing and
BSUoS costs, and a lower negative contribu-
tion from hedges. This was partly offset by
lower generation from Hornsea 2 due to the
farm-down and as the impact from wind was
negative by DKK 0.5 billion due to lower wind
speeds than in Q2 2022 (DKK 0.5 billion lower
than a normal wind year).
EBITDA from partnerships amounted to DKK
0.3 billion in Q2 2023, mainly from adjustment
of provisions toward partners partly offset by
a reduction in earnings on our construction
agreement on Greater Changhua 1 due to
higher costs and later commissioning of the
wind turbines.
EBITDA from other activities, including project
development, amounted to DKK -0.5 billion,
DKK 0.2 billion less negative than in Q2 2022.
Financial results
Q2 2023 Q2 2022 %
Business drivers
Decided (FID'ed) and installed capacity GW
12.0 11.1 8 %
Installed capacity
GW
8.9 7.6 17 %
Generation capacity
GW
4.9 4.8 3 %
Wind speed
m/s
8.1 8.4 (4 %)
Load factor
%
29 35 (6 %p)
Availability
%
91 94 (3 %p)
Power generation
GWh
3,044 3,324 (8 %)
Denmark
371 385 (4 %)
United Kingdom
1,779 2,284 (22 %)
Germany
398 372 7 %
The Netherlands
288 262 10 %
APAC
190 1 n.a.
The US
18 20 (14 %)
Power sales GWh 6,739 7,416 (9 %)
Power price, LEBA UK
GBP/MWh
105 188 (44 %)
British pound
DKK/GBP
8.6 8.8 (2 %)
Financial performance
Revenue
DKKm
11,522 17,336 (34 %)
Sites, O&M, and PPAs
4,490 4,756 (6 %)
Power sales
6,851 10,355 (34 %)
Construction agreements
(14) 2,356 n.a.
Other
195 (131) n.a.
EBITDA
DKKm
2,979 1,904 56 %
Sites, O&M, and PPAs
3,135 2,031 54 %
Construction agreements and divestment gains 340 601 (43 %)
Other, incl. project development (496) (728) (32 %)
Depreciation
DKKm
(1,761) (1,671) 5 %
EBIT
DKKm
1,218 233 423 %
Cash flow from operating activities
DKKm
1,193 46 n.a.
Gross investments
DKKm
(5,480) (5,257) 4 %
Divestments
DKKm
(2,007) 176 n.a.
Free cash flow DKKm
(6,294) (5,035) 25 %
Capital employed DKKm
106,180 80,485 32 %
H1 2023
12.0
8.9
4.9
9.5
41
93
8,206
969
5,195
964
700
332
46
17,381
125
8.5
33,666
10,330
22,350
558
428
8,391
8,994
298
(901)
(3,454)
4,937
10,799
(11,493)
(2,028)
(2,722)
106,180
H1 2022
11.1
7.6
4.8
9.9
44
94
7,826
1,026
5,146
936
662
1
55
16,582
219
8.8
37,142
8,619
24,332
4,095
96
7,823
5,727
3,227
(1,131)
(3,192)
4,631
(2,160)
(10,805)
2,121
(10,844)
80,485
%
8 %
17 %
3 %
(4 %)
(3 %p)
(1 %p)
5 %
(6 %)
1 %
3 %
6 %
n.a.
(16 %)
5 %
(43 %)
(4 %)
(9 %)
20 %
(8 %)
(86 %)
346 %
7 %
57 %
(91 %)
(20 %)
8 %
7 %
n.a.
6 %
n.a.
(75 %)
32 %
O&M: Operation and maintenance agreements, PPAs: Power purchase agreements
Offshore
14/38
Management’s review
Interim financial report First half year 2023
Financial results Q2 2023
Power generation from our operating onshore
assets decreased by 12 % compared to Q2
2022 and amounted to 3.3 TWh. The decrease
was due to significantly lower wind speeds.
This was only partly offset by the commission-
ing of Ford Ridge and ramp-up of generation at
Old 300.
Revenue decreased by 14 % compared with Q2
2022 and amounted to DKK 0.6 billion. The
decrease was mainly due to the lower genera-
tion mentioned above and lower prices across
the portfolio.
EBITDA for Q2 2023 amounted to DKK 0.8
billion, DKK 0.3 billion lower than in the same
period last year. The decrease was due to low-
er prices, especially in the UK and Ireland, and
the lower generation in the US, due to the low-
er wind speeds.
Onshore
Q2 2023 Q2 2022 %
Business drivers
Decided (FID'ed) and installed capacity GW 6.2 4.9 27 %
Installed capacity
GW
4.6 4.0 15 %
Wind speed
m/s
6.7 7.8 (15 %)
Load factor, wind
%
35 48 (13 %p)
Load factor, solar PV
%
30 31 (1 %p)
Availability, wind
%
92 92 (0 %p)
Availability, solar PV
%
98 99 (1 %p)
Power generation
GWh
3,321 3,795 (12 %)
US, wind
2,454 3,057 (20 %)
US, solar PV
668 567 18 %
Europe
199 171 17 %
US dollar DKK/USD
6.8 7.0 (2 %)
Financial performance
Revenue
DKKm
625 730 (14 %)
EBITDA
DKKm
792 1,075 (26 %)
Sites
292 571 (49 %)
Production tax credits and tax attributes 637 679 (6 %)
Other, incl. project development (137) (175) (22 %)
Depreciation
DKKm
(458) (382) 20 %
EBIT
DKKm
334 693 (52 %)
Cash flow from operating activities
DKKm
(359) 1,294 n.a.
Gross investments
DKKm
(1,917) (997) 92 %
Divestments
DKKm
(1) 44 n.a.
Free cash flow DKKm (2,277) 341 n.a.
Capital employed DKKm
34,308 21,671 58 %
H1 2023
6.2
4.6
7.4
40
24
91
98
7,071
5,509
1,031
531
6.9
1,346
1,626
616
1,396
(386)
(899)
727
(501)
(4,585)
2
(5,084)
34,308
H1 2022
4.9
4.0
7.9
47
26
94
99
6,998
5,732
856
410
6.8
1,420
1,925
1,067
1,247
(389)
(740)
1,185
1,106
(2,218)
44
(1,068)
21,671
%
27 %
15 %
(6 %)
(7 %p)
(2 %p)
(3 %p)
(1 %p)
1 %
(4 %)
21 %
30 %
1 %
(5 %)
(16 %)
(42 %)
12 %
(1 %)
21 %
(39 %)
n.a.
107 %
(97 %)
376 %
58 %
15/38
Management’s review
Interim financial report First half year 2023
Financial results Q2 2023
Heat generation decreased by 4 % in Q2 2023,
and power generation decreased by 17 %,
mainly due to less attractive spreads for power
condensing generation and warmer weather.
Gas sales and power sales decreased by 55 %
and 62 %, respectively, due to no volumes be-
ing delivered due to the termination of the
Gazprom Export sourcing contract as the con-
tract has been terminated during Q1 2023, and
a gradual phase-out of our remaining UK B2B
activities.
Revenue decreased by 51 % compared to Q2
2022 and amounted to DKK 4.5 billion. The
decrease was driven by significantly lower gas
and power sales and lower prices.
EBITDA amounted to DKK -0.6 billion com-
pared to DKK 0.6 billion in Q2 2022.
EBITDA from CHP plants was DKK -0.2 billion,
DKK 0.9 billion lower than in Q2 2022. This was
due to the lower generation and market-based
spreads mentioned above. In addition, earnings
from power generation were negatively im-
pacted by the high costs of biomass and coal
relative to the market prices in Q2 2023 as the
cost is measured using the first in, first out
(FIFO) principle. The fuel we have been using
during Q2 2023 was bought last year at the
higher price levels. The opposite was the case
in Q2 2022.
EBITDA from ‘Gas Markets & Infrastructure’
decreased by DKK 0.3 billion relative to Q2
2022 ending at a loss of DKK 0.3 billion. The
decrease was, to a large extent, driven by a
temporary negative effect from revaluation of
our gas at storage during Q2 2023.
Bioenergy & Other
Financial results
Q2 2023 Q2 2022 %
Business drivers
Degree days Number 409 448 (9 %)
Heat generation
GWh
790 823 (4 %)
Power generation
GWh
917 1,102 (17 %)
Gas sales
GWh
4,016 8,891 (55 %)
Power sales
GWh
556 1,466 (62 %)
Gas price, TTF
EUR/MWh
35.1 95.6 (63 %)
Power price, DK
EUR/MWh
84.0 179.8 (53 %)
Green dark spread, DK
EUR/MWh
(37.7) (11.4) 232 %
Wood pellet spread, DK
EUR/MWh
(3.3) 34.1 n.a.
Financial performance
Revenue
DKKm
4,460 9,182 (51 %)
EBITDA
DKKm
(583) 647 n.a.
CHP plants (244) 619 n.a.
Gas Markets & Infrastructure (279) 66 n.a.
Other, incl. project development
(60) (38) 58 %
Depreciation DKKm
(170) (193) (12 %)
EBIT
DKKm
(753) 454 n.a.
Cash flow from operating activities
DKKm
984 1,326 (26 %)
Gross investments
DKKm
(89) (107) (17 %)
Divestments
DKKm
(3) 6 n.a.
Free cash flow
DKKm
892 1,225 (27 %)
Capital employed DKKm
5,414 (1,385) n.a.
H1 2023
1,566
3,968
2,614
8,484
1,433
44.6
93.6
(36.4)
4.3
11,350
(66)
601
(516)
(151)
(410)
(476)
62
(145)
(3)
(86)
5,414
H1 2022
1,589
4,066
3,240
21,883
3,156
95.6
165.4
(5.9)
27.1
23,656
3,161
2,442
791
(72)
(382)
2,779
3,765
(158)
(2)
3,605
(1,385)
%
(1 %)
(2 %)
(19 %)
(61 %)
(55 %)
(53 %)
(43 %)
521 %
(84 %)
(52 %)
n.a.
(75 %)
n.a.
110 %
7 %
n.a.
(98 %)
(8 %)
50 %
n.a.
n.a.
16/38
Management’s review
Interim financial report First half year 2023
Financials, DKKm
H1 2023 H1 2022 2022
Income statement
Revenue
45,846 60,057 132,277
EBITDA
10,230 13,044 32,057
Offshore
8,391 7,823 19,569
Sites, O&M, and PPAs
8,994 5,727 9,940
Construction agreements and divestment gains
298 3,227 12,277
Other, incl. project development
(901) (1,131) (2,648)
Onshore
1,626 1,925
3,644
Bioenergy & Other
(66) 3,161 8,619
Other activities/eliminations
279 135 225
Depreciation and amortisation
(4,892) (4,432) (9,754)
Impairment
- - (2,529)
Operating profit (loss) (EBIT)
5,338 8,612 19,774
Gain (loss) on divestment of enterprises
328 175 331
Net financial income and expenses
(3,316) (1,334) (2,536)
Profit (loss) before tax
2,372 7,454 17,609
Tax
292 (1,484) (2,613)
Profit (loss) for the period
2,664 5,970 14,996
Balance
Assets 296,466 320,722 314,142
Equity
103,548 61,276 95,532
Shareholders in Ørsted A/S
82,379 40,091 71,743
Hybrid capital
19,103 17,984 19,793
Non-controlling interests
2,066 3,201 3,996
Interest-bearing net debt
43,924 41,449 30,571
Capital employed
147,471 102,725 126,103
Additions to property, plant, and equipment
14,902 13,851 33,662
Cash flow
Cash flow from operating activities
12,566 2,318 11,924
Gross investments
(16,266) (13,204) (37,447)
Divestments
(2,054) 2,194 25,636
Free cash flow
(5,754) (8,692) 113
Financial ratios
Return on capital employed (ROCE)
1
, % 13.2 14.8 16.8
FFO/adjusted net debt
2
, % 17.7 39.0 42.7
Number of outstanding shares, end of period, '000
420,381 420,381 420,381
Share price, end of period, DKK
645 742 631
Market capitalisation, end of period, DKK billion
271 312 265
Earnings per share (EPS), DKK
5.3 13.5 34.6
Dividend yield, %
- - 2.1
H1 2023 H1 2022 2022
Offshore
Decided (FID'ed) and installed capacity, GW
12.0 11.1 11.1
Installed capacity, GW
8.9 7.6 8.9
Generation capacity, GW
4.9 4.8 4.7
Wind speed, m/s
9.5 9.9 9.5
Load factor, %
41 44 42
Availability, %
93 94 94
Power generation, GWh
8,206 7,826 16,483
Power sales, GWh
17,381 16,582 33,745
Onshore
Decided (FID'ed) and installed capacity, GW
6.2 4.9 6.2
Installed capacity, GW
4.6 4.0 4.2
Wind speed, m/s
7.4 7.9 7.4
Load factor, wind, %
40 47 40
Load factor, solar PV, %
24 26 25
Availability, wind, %
91 94 93
Availability, solar PV, %
98 99 98
Power generation, GWh
7,071 6,998 13,146
Bioenergy & Other
Degree days, number
1,566
1,589 2,548
Heat generation, GWh
3,968 4,066 6,368
Power generation, GWh
2,614 3,240 6,012
Power sales, GWh
1,433 3,156 5,399
Gas sales, GWh
8,484 21,883 31,637
ESG statements
Employees (FTE), end of period number
8,661 7,292 8,027
Total recordable injury rate (TRIR), YTD
2.6 2.8 3.1
Fatalities, number
- - -
Green share of energy generation, %
92 92 91
GHG emission (scope 1 & 2), Mtonnes
0.9 1.1 2.5
GHG intensity (scope 1 & 2), g CO
2
e/kWh 42 49 60
GHG emissions (scope 3), Mtonnes
2.9 6.3 11.0
Performance highlights
1
EBIT last 12 months.
2 FFO last 12 months.
17/38
Management’s review
Interim financial report First half year 2023
Quarterly overview
Financials, DKKm
Q2
2023
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Income statement
Revenue 16,477 29,369 35,679 36,541 26,295 33,762 30,666 14,510
EBITDA 3,320 6,910 6,696 12,317 3,615 9,429 8,253 2,984
Offshore 2,979 5,412 2,094 9,652 1,904 5,919 5,244 1,304
Sites, O&M, and PPAs 3,135 5,859 3,746 467 2,031 3,698 3,983 1,822
Construction agreements and
divestment gains
340 (42) (715) 9,765 601 2,620 2,469 (9)
Other incl. project development (496) (405) (937) (580) (728) (399) (1,208) (509)
Onshore 792 834 852 867 1,075 850 530 413
Bioenergy & Other (583) 517 3,609 1,849 647 2,514 2,416 1,206
Other activities/eliminations 132 147 141 (51) (11) 146 63 61
Depreciation and amortisation (2,454) (2,438) (2,792) (2,530) (2,304) (2,128) (2,143) (1,939)
Impairment - - (2,529) - - - (129) -
Operating profit (loss) (EBIT) 866 4,472 1,375 9,787 1,311 7,301 5,980 1,045
Gain (loss) on divestment of enterprises 159 169 32 124 67 108 (684) (22)
Net financial income and expenses (1,797) (1,519) (985) (217) (486) (848) (930) (351)
Profit (loss) before tax (763) 3,135 460 9,695 893 6,561 4,361 671
Tax 225 67 (789) (340) (624) (860) (1,103) (184)
Profit (loss) for the period (538) 3,202 (329) 9,355 269 5,701 3,258 487
Balance sheet
Assets 296,466 306,644 314,142 359,758 320,722 285,087 270,385 261,892
Equity 103,548 102,826 95,532 53,777 61,276 76,719 85,137 79,150
Shareholders in Ørsted A/S 82,379 78,551 71,743 32,413 40,091 55,704 64,072 58,129
Hybrid capital 19,103 19,793 19,793 17,984 17,984 17,984 17,984 17,984
Non-controlling interests 2,066 4,482 3,996 3,380 3,201 3,031 3,081 3,037
Interest-bearing net debt 43,924 35,261 30,571 45,701 41,449 30,026 24,280 21,211
Capital employed 147,471 138,087 126,103 99,478 102,725 106,745 109,416 100,361
Additions to property, plant, equipment 6,963 7,939 9,912 9,899 8,724 5,127 17,041 11,477
Cash flow
Cash flow from operating activities 2,447 10,119 20,915 (11,309) 2,355 (37) 668 246
Gross investments (7,498) (8,768) (9,826) (14,417) (6,372) (6,832) (11,752) (8,757)
Divestments (2,038) (16) 983 22,459 267 1,927 10,952 7
Free cash flow (7,089) 1,335 12,072 (3,267) (3,750) (4,942) (132) (8,504)
Financial ratios
Return on capital employed (ROCE)
1
, % 13.2 13.8 16.8 24.4 14.8 19.0 14.8 12.9
FFO/adjusted net debt
2
, % 17.7 37.4 42.7 35.3 39.0 37.5 26.3 42.5
Number of outstanding shares, end of period, '000 420,381 420,381 420,381 420,381 420,381 420,381 420,381 420,381
Share price, end of period, DKK
645 583 631 608 742 849 835 849
Market capitalisation, end of period, DKK billion 271 245 265 255 312 357 351 357
Earnings per share (EPS), DKK (1.4) 6.7 1.2 22.3 0.3 13.2 7.5 1.1
Business drivers
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Offshore
Decided (FID'ed) and installed capacity, GW 12.0 11.1 11.1 11.1 11.1 10.9 9.8
Installed capacity, GW
8.9 8.9 8.9 7.6 7.6 7.6 7.6
Generation capacity, GW
4.7 4.7 5.3 4.8 4.2 4.0 4.0
Wind speed, m/s
10.9 10.7 7.7 8.4 11.3 10.6 7.6
Load factor, %
53 54 28 35 54 53 27
Availability, %
95 95 91 94 95 95 93
Power generation, GWh
5,162 5,411 3,246 3,324 4,502 4,452 2,286
Power sales, GWh
10,642 11,563 5,600 7,416 9,166 8,791 4,803
Onshore
Decided (FID'ed) and installed capacity, GW
6.2 6.2 5.1 4.9 4.7 4.7 4.7
Installed capacity, GW
4.5 4.2 4.2 4.0 3.6 3.4 3.0
Wind speed, m/s
8.1 7.7 6.0 7.8 7.9 7.9 6.4
Load factor, wind, %
45 40 28 47 47 47 33
Availability, wind, %
91 91 92 92 96 96 98
Power generation, GWh
3,750 3,425 2,723 3,795 3,203 2,818 1,904
Bioenergy & Other
Degree days, number
1,157 861 98 448 1,141 927 81
Heat generation, GWh
3,178 2,064 239 823 3,243 2,467 402
Power generation, GWh
1,697 1,409 1,363 1,102 2,138 2,096 1,028
Power sales, GWh
877 904 1,339 1,466 1,690 2,072 2,271
Gas sales, GWh
4,468 4,048 5,706 8,891 12,993 13,744 13,580
ESG statements
Employees (FTE) end of period, number
8,422 8,027 7,681 7,292 7,016 6,836 6,672
Total recordable injury rate (TRIR), YTD
2.7 3.1 3.3 2.8 1.3 3.0 3.0
Fatalities, number
- - - - - - -
Green share of energy generation, %
89 88 89 93 92 93 89
GHG intensity (scope 1 & 2), g CO
2
e/kWh
52 62 88 49 48 45 91
GHG emissions (scope 3), Mtonnes
1.5 1.5 3.1 2.6 3.7 3.9 4.4
Q2
2023
12.0
8.9
4.9
8.1
29
91
3,044
6,739
6.2
4.6
6.7
35
92
3,321
409
790
917
556
4,016
8,661
2.6
-
97
24
1.3
Load factor, solar PV, %
30 16 17 32 31 21 19 27
Availability, solar PV, %
98 99 99 96 99 99 99 98
GHG emissions (scope 1 & 2), Mtonnes
0.2 0.7 0.8 0.7 0.4 0.6 0.5 0.5
1
EBIT last 12 months.
2 FFO last 12 months.
18/38
Management’s review
Interim financial report First half year 2023
Consolidated
financial statements
First half year 2023
1 January – 30 June
Consolidated financial statements
Interim financial report First half year 2023
19/38
Consolidated statements of income
1 January – 30 June
’Value adjustments for the period’ in the first half year of 2023 are mainly a
result of gains on power hedges due to a decrease in power prices.
Statement of comprehensive income
DKKm H1 2023 H1 2022
Profit (loss) for the period 2,664 5,970
Other comprehensive income:
Cash flow hedging:
Value adjustments for the period 17,756 (38,560)
Value adjustments transferred to income statement (251) 7,606
Value adjustments transferred to balance sheet - (69)
Exchange rate adjustments:
Exchange rate adjustments relating to net investments in foreign enterprises 1,113 825
Value adjustment of net investment hedges (456) (716)
Value adjustments and hedges transferred to income statement (59) -
Tax:
Tax on hedging instruments (3,662) 6,046
Tax on exchange rate adjustments (221) 398
Other:
Share of other comprehensive income of associated companies, after tax 3 37
Other comprehensive income 14,223 (24,433)
Total comprehensive income 16,887 (18,463)
Comprehensive income for the period is attributable to:
Shareholders in Ørsted A/S 16,418 (18,743)
Interest payments and costs, hybrid capital owners of Ørsted A/S 195 293
Non-controlling interests 274 (13)
Total comprehensive income 16,887 (18,463)
Note
Income statement
DKKm H1 2023 H1 2022
3 Revenue 45,846 60,057
Cost of sales (32,002) (43,836)
Other external expenses (3,064) (2,848)
Employee costs (3,322) (2,434)
Share of profit (loss) in associates and joint ventures 37 56
4 Other operating income 3,234 3,433
4 Other operating expenses (499) (1,384)
Operating profit (loss) before depreciation, amortisation,
and impairment losses (EBITDA) 10,230 13,044
Amortisation, depreciation, and impairment losses on intangible
assets, and property, plant, and equipment (4,892) (4,432)
Operating profit (loss) (EBIT)
5,338 8,612
Gain (loss) on divestment of enterprises 328 175
Share of profit (loss) in associates and joint ventures 22 1
5 Financial income 3,921 3,091
5 Financial expenses (7,237) (4,425)
Profit (loss) before tax
2,372 7,454
8 Tax on profit (loss) for the period 292 (1,484)
Profit (loss) for the period
2,664 5,970
Profit (loss) for the period is attributable to:
Shareholders in Ørsted A/S 2,214 5,688
Interests and costs, hybrid capital owners of Ørsted A/S 195 293
Non-controlling interests 255 (11)
Earnings per share (DKK) 5.3 13.5
Diluted earnings per share (DKK) 5.3 13.5
Consolidated financial statements
Interim financial report First half year 2023
20/38
Consolidated statements of income (continued)
1 April – 30 June
’Value adjustments for the period’ in Q2 2023 are mainly a result of gains on
power hedges due to a decrease in power prices.
Statement of comprehensive income
DKKm Q2 2023 Q2 2022
Profit (loss) for the period (538) 269
Other comprehensive income:
Cash flow hedging:
Value adjustments for the period 4,793 (15,599)
Value adjustments transferred to income statement 300 1,914
Value adjustments transferred to balance sheet - (37)
Exchange rate adjustments:
Exchange rate adjustments relating to net investments in foreign enterprises 1,042 877
Value adjustment of net investment hedges (368) (675)
Value adjustments and hedges transferred to income statement (59) -
Tax:
Tax on hedging instruments (983) 2,704
Tax on exchange rate adjustments (153) 286
Other:
Share of other comprehensive income of associated companies, after tax 2 28
Other comprehensive income 4,574 (10,502)
Total comprehensive income 4,036 (10,233)
Comprehensive income for the period is attributable to:
Shareholders in Ørsted A/S 3,946 (10,370)
Interest payments and costs after tax, hybrid capital owners of Ørsted A/S 50 148
Non-controlling interests 40 (11)
Total comprehensive income 4,036 (10,233)
Note
Income statement
DKKm Q2 2023 Q2 2022
3 Revenue 16,477 26,295
Cost of sales (11,658) (19,289)
Other external expenses (1,435) (1,673)
Employee costs (1,782) (1,268)
Share of profit (loss) in associates and joint ventures (25) 1
4 Other operating income 2,138 857
4 Other operating expenses (395) (1,308)
Operating profit (loss) before depreciation, amortisation,
and impairment losses (EBITDA) 3,320 3,615
Amortisation, depreciation, and impairment losses on intangible
assets, and property, plant, and equipment (2,454) (2,304)
Operating profit (loss) (EBIT) 866 1,311
Gain (loss) on divestment of enterprises 159 67
Share of profit (loss) in associates and joint ventures 9 1
5 Financial income 835 2,028
5 Financial expenses (2,632) (2,514)
Profit (loss) before tax (763) 893
8 Tax on profit (loss) for the period 225 (624)
Profit (loss) for the period (538) 269
Profit (loss) for the period is attributable to:
Shareholders in Ørsted A/S (596) 132
Interests and costs, hybrid capital owners of Ørsted A/S 50 148
Non-controlling interests 8 (11)
Earnings per share (DKK) (1.4) 0.3
Diluted earnings per share (DKK) (1.4) 0.3
Consolidated financial statements
Interim financial report First half year 2023
21/38
Consolidated balance sheet
30 June
Note
Assets
DKKm
30 June
2023
31 December
2022
30 June
2022
Intangible assets 3,156 4,029 1,406
Land and buildings 8,255 7,980 8,043
Production assets 122,495 119,211 115,694
Fixtures and fittings, tools, and equipment 1,909 1,543 1,604
Property, plant, and equipment under construction 54,538 48,931 48,957
Property, plant, and equipment 187,197 177,665 174,298
Investments in associates and joint ventures 964 772 755
Receivables from associates and joint ventures 44 - -
Other securities and equity investments 172 182 233
10 Derivatives 1,374 1,804 10,188
Deferred tax 9,881 13,719 20,874
Other receivables 3,370 3,243 2,876
Other non-current assets 15,805 19,720 34,926
Non-current assets 206,158 201,414 210,630
Inventories 12,499 14,103 18,724
10 Derivatives 13,382 23,433 42,011
Contract assets 452 408 2,051
Trade receivables 6,864 12,701 8,630
Other receivables 13,543 20,289 12,223
8 Income tax 244 419 617
10 Securities 31,458 25,197 19,508
Cash 11,866 16,178 5,093
Current assets 90,308 112,728 108,857
Assets classified as held for sale - - 1,235
Assets 296,466 314,142 320,722
Note
Equity and liabilities
DKKm
30 June
2023
31 December
2022
30 June
2022
Share capital 4,204 4,204 4,204
7 Reserves (12,266) (26,467) (49,246)
Retained earnings 90,441 88,331 85,133
Proposed dividends - 5,675 -
Equity attributable to shareholders in Ørsted A/S 82,379 71,743 40,091
Hybrid capital 19,103 19,793 17,984
Non-controlling interests 2,066 3,996 3,201
Equity 103,548 95,532 61,276
Deferred tax 4,943 7,414 7,149
Provisions 18,320 19,121 14,500
Lease liabilities 7,818 7,697 7,787
11 Bond and bank debt 76,636 60,451 46,467
10 Derivatives 16,673 24,121 33,414
Contract liabilities 3,030 3,085 3,159
Tax equity liabilities 12,445 14,490 14,533
Other payables 6,589 7,363 4,625
Non-current liabilities 146,454 143,742 131,634
Provisions 530 585 722
Lease liabilities 646 569 768
11 Bond and bank debt 2,669 2,830 11,992
10 Derivatives 13,950 33,438 77,302
Contract liabilities 2,307 2,269 1,258
Trade payables 12,006 20,641 20,412
Tax equity liabilities 2,865 1,903 1,691
Other payables 5,998 7,518 7,653
8 Income tax 5,493 5,115 5,504
Current liabilities 46,464 74,868 127,302
Liabilities 192,918 218,610 258,936
Liabilities relating to assets classified as
held for sale - - 510
Equity and liabilities 296,466 314,142 320,722
Consolidated financial statements
Interim financial report First half year 2023
22/38
1 See note 7 ‘Reserves’ for more information about reserves.
Consolidated statement of shareholders’ equity
1 January – 30 June
2023 2022
DKKm
Share
capital Reserves
1
Retained
earnings
Proposed
dividends
Share-
holders in
Ørsted A/S
Hybrid
capital
Non-con-
trolling
interests
Total
Group
Share
capital Reserves
1
Retained
earnings
Proposed
dividends
Share-
holders in
Ørsted A/S
Hybrid
capital
Non-con-
trolling
interests
Total
Group
Equity at 1 January 4,204 (26,467) 88,331 5,675 71,743 19,793 3,996 95,532 4,204 (24,778) 79,391 5,255 64,072 17,984 3,081 85,137
Comprehensive income
for the period:
Profit (loss) for the period - - 2,214 - 2,214 195 255 2,664 - - 5,688 - 5,688 293 (11) 5,970
Other comprehensive income:
Cash flow hedging - 17,505 - - 17,505 - - 17,505 - (31,023) - - (31,023) - - (31,023)
Exchange rate adjustments - 579 - - 579 - 19 598 - 111 - - 111 - (2) 109
Tax on other comprehensive income - (3,883) - - (3,883) - - (3,883) - 6,444 - - 6,444 - - 6,444
Share of other comprehensive income
of associated companies, after tax - - 3 - 3 - - 3 - - 37 - 37 - - 37
Total comprehensive income - 14,201 2,217 - 16,418 195 274 16,887 - (24,468) 5,725 - (18,743) 293 (13) (18,463)
Coupon payments, hybrid capital - - - - - (188) - (188) - - - - - (314) - (314)
Tax, hybrid capital - - - - - 2 - 2 - - - - - 21 - 21
Disposals, hybrid capital - - - - - (699) - (699) - - - - - - - -
Dividends paid - - 2 (5,675) (5,673) - (189) (5,862) - - 3 (5,255) (5,252) - (150) (5,402)
Additions, non-controlling interests - - - - - - 532 532 - - - - - - 283 283
Disposals, non-controlling interests - - (119) - (119) - (2,547) (2,666) - - - - - - - -
Other changes - - 10 - 10 - - 10 - - 14 - 14 - - 14
Equity at 30 June 4,204 (12,266) 90,441 - 82,379 19,103 2,066 103,548 4,204 (49,246) 85,133 - 40,091 17,984 3,201 61,276
Consolidated financial statements
Interim financial report First half year 2023
23/38
Statement of cash flows
Our supplementary statement of gross and net investments appears from
note 6 ’Gross and net investments’ and free cash flow (FCF) from note 2
’Segment information’.
’Cash’ according to the balance sheet as at 30 June 2023 includes ’Bank
overdrafts that are part of the ongoing cash management’, amounting to
DKK 3 million.
Consolidated statement of cash flows
1 January – 30 June
Note
Statement of cash flows
DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Operating profit (loss) before
depreciation, amortisation, and
impairment losses (EBITDA) 10,230 13,044 3,320 3,615
Reversal of gain (loss) on divestment
of assets (1,303) (1,884) (1,179) (21)
Change in derivatives
5,258 (5,215) 100 (1,251)
Change in provisions
(25) (955) (37) (190)
Other items
(45) (154) 123 (89)
Change in inventories 1,857 (2,979) 716 (2,481)
Change in contract assets and liabilities 113 (3,292) 728 (2,316)
Change in trade receivables 5,800 933 1,867 208
Change in other receivables 2,331 3,284 1,700 5,645
Change in trade payables (7,349) 539 (1,750) (554)
Change in tax equity liabilities (1,152) (21) (512) 475
Change in other payables (990) (209) (1,565) (361)
Interest received and similar items 4,276 2,943
1,235 1,693
Interest paid and similar items (4,939) (3,197) (1,598) (1,730)
Income tax paid (1,496) (519) (701) (288)
Cash flows from operating activities 12,566 2,318 2,447 2,355
Purchase of intangible assets and
property, plant, and equipment (16,077) (13,110) (7,305) (6,309)
Sale of intangible assets and property,
plant, and equipment 118 1,887 138 25
Acquisition of enterprises
- (26) - (26)
Divestment of enterprises
(30) 25 (32) 44
Purchase of associates and joint ventures
(124) - (124) -
Purchase of other equity investments
7 4 4 3
Purchase of securities
(12,266) (1,019) (4,355) (206)
Sale/maturation of securities
5,792 1,467 3,779 475
Change in other non-current assets
(10) (18) 3 (16)
Transactions with associates and
joint ventures (107) (54) (121) (24)
Dividends received and capital
reductions - 22 - 22
Cash flows from investing activities (22,697) (10,822) (8,013) (6,012)
Note DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Proceeds from raising of loans 16,095 20,363
1,241 13,804
Instalments on loans (606) (12,975) (57) (6,052)
Instalments on leases (347) (296) (159) (123)
Coupon payments on hybrid capital (188) (314) (43) (164)
Repurchase of hybrid capital (699) - (699) -
Dividends paid to shareholders in
Ørsted A/S (5,673) (5,252) - (5,252)
Transactions with non-controlling
interests (2,358) 115 (2,216) 158
Net proceeds from tax equity partners (108) (137)
(4) (86)
Collateral posted in relation to trading
of derivatives (12,520) (21,227) (4,642) (10,087)
Collateral released in relation to trading
of derivatives 10,489 25,424 4,606 13,765
Restricted cash and other changes 1,558 (921) (243) (1,949)
Cash flows from financing activities 5,643 4,780 (2,216) 4,014
Total net change in cash and
cash equivalents (4,488) (3,724) (7,782) 357
Cash and cash equivalents at the
beginning of the period 16,175 8,614 19,571 4,548
Total net change in cash and cash
equivalents (4,488) (3,724) (7,782) 357
Exchange rate adjustments of cash
and cash equivalents 176 86 74 71
Cash and cash equivalents at 30 June 11,863 4,976 11,863 4,976
Consolidated financial statements
Interim financial report First half year 2023
24/38
Implementation of new standards,
interpretations, and amendments adopted
by the Group
The accounting policies adopted in the
preparation of the interim financial statements
are consistent with those followed in the
preparation of our annual consolidated
financial statements for the year ended
31 December 2022, except for the adoption of
new standards effective as of 1 January 2023.
The Group has not early adopted any
standard, interpretation, or amendment that
has been issued but not yet effective.
Several amendments apply for the first time in
2023, but do not have a material impact on
our financial statements.
Ørsted is a listed public company, headquar-
tered in Denmark.
This interim financial report for the first half
year of 2023 comprises the interim financial
statements of Ørsted A/S (the parent
company) and any subsidiaries controlled by
Ørsted A/S.
The interim financial report has been prepared
in accordance with the International Financial
Reporting Standards (IFRS), IAS 34 ’Interim
Financial Reporting’ as adopted by the EU, and
further requirements in the Danish Financial
Statements Act (Årsregnskabsloven) for the
presentation of quarterly interim reports by
listed companies.
Definitions of alternative performance
measures can be found on page 152 of the
annual report for 2022.
The interim consolidated financial statements
for the first half year of 2023 are a condensed
set of financial statements, as it does not
include all information and disclosures required
by the annual financial statements. The interim
consolidated financial statements have been
prepared using the same accounting policies
as our annual consolidated financial
statements as of 31 December 2022 and
should be read in conjunction with this.
1. Basis of reporting
Consolidated financial statements
Interim financial report First half year 2023
25/38
The column ’Other activities/eliminations’ primarily
covers the elimination of inter-segment transactions.
It also includes income and costs, assets and
liabilities, investment activity, taxes, etc., handled at
Group level.
1 Including the elimination of other activities, the total
elimination of intra-group revenue amounts to
DKK 2,623 million, which primarily relates to our
Shared Functions services as well as our B2B
business activities.
2. Segment information
2023 income statement
DKKm Offshore Onshore
Bioenergy
& Other
Reportable
segments
Other
activities/
eliminations Total
External revenue 33,061 1,368 11,389 45,818 28 45,846
Intra-group revenue 605 (22) (39) 544 (544)
1
-
Revenue 33,666 1,346 11,350 46,362 (516) 45,846
Cost of sales (22,093) (87) (10,045) (32,225) 223 (32,002)
Employee costs and other external expenses (4,518) (1,067) (1,372) (6,957) 571 (6,386)
Gain (loss) on disposal of non-current assets 1,303 - - 1,303 - 1,303
Additional other operating income and expenses (8) 1,437 2 1,431 1 1,432
Share of profit (loss) in associates and joint ventures 41 (3) (1) 37 - 37
EBITDA 8,391 1,626 (66) 9,951 279 10,230
Depreciation and amortisation
(3,454) (899) (410)
(4,763)
(129)
(4,892)
Operating profit (loss) (EBIT) 4,937 727 (476) 5,188 150 5,338
Key ratios
Intangible assets and property, plant, and equipment 121,031 60,157 7,859 189,047 1,306 190,353
Equity investments and non-current receivables 779 148 92 1,019 164 1,183
Net working capital, capital expenditures (3,390) (541) (97) (4,028) - (4,028)
Net working capital, work in progress 3,873 - - 3,873 - 3,873
Net working capital, tax equity - (14,105) - (14,105) - (14,105)
Net working capital, other items 4,908 693 931 6,532 1,155 7,687
Derivatives, net (10,845) (6,331) 564 (16,612) 745 (15,867)
Decommissioning obligations (10,645) (1,883) (2,103) (14,631) - (14,631)
Other provisions (1,678) (2) (678) (2,358) (1,861) (4,219)
Tax, net 3,726 (3,823) (1,154) (1,251) 940 (311)
Other receivables and other payables, net (1,579) (5) - (1,584) (880) (2,464)
Capital employed at 30 June 106,180 34,308 5,414 145,902 1,569 147,471
Return on capital employed (ROCE), % - - - - - 13.2
Cash flow from operating activities 10,799 (501) 62 10,360 2,206 12,566
Gross investments (11,493) (4,585) (145) (16,223) (43) (16,266)
Divestments (2,028) 2 (3) (2,029) (25) (2,054)
Free cash flow (FCF) (2,722) (5,084) (86) (7,892) 2,138 (5,754)
Consolidated financial statements
Interim financial report First half year 2023
26/38
2. Segment information (continued)
The column ’Other activities/eliminations’ primarily
covers the elimination of inter-segment transactions.
It also includes income and costs, assets and
liabilities, investment activity, taxes, etc., handled at
Group level.
1 Including the elimination of other activities, the total
elimination of intra-group revenue amounts to
DKK 3,607 million, which primarily relates to our
Shared Functions services as well as our B2B
business activities.
2022 income statement
DKKm Offshore Onshore
Bioenergy
& Other
Reportable
segments
Other
activities/
eliminations Total
External revenue 33,335 1,420 25,288 60,043 14 60,057
Intra-group revenue 3,807 - (1,632) 2,175 (2,175)
1
-
Revenue 37,142 1,420 23,656 62,218 (2,161) 60,057
Cost of sales (26,544) (21) (19,421) (45,986) 2,150 (43,836)
Employee costs and other external expenses (3,560) (767) (1,103) (5,430) 148 (5,282)
Gain (loss) on disposal of non-current assets 1,836 43 5 1,884 - 1,884
Additional other operating income and expenses (1,104) 1,249 22 167 (2) 165
Share of profit (loss) in associates and joint ventures 53 1 2 56 - 56
EBITDA 7,823 1,925 3,161 12,909 135 13,044
Depreciation and amortisation
(3,192) (740) (382)
(4,314)
(118)
(4,432)
Operating profit (loss) (EBIT) 4,631 1,185 2,779 8,595 17 8,612
Key ratios
Intangible assets and property, plant, and equipment 116,493 49,964 7,903 174,360 1,344 175,704
Assets classified as held for sale, net - - 741 741 - 741
Equity investments and non-current receivables 642 45 129 816 208 1,024
Net working capital, capital expenditures (7,975) (521) (32) (8,528) - (8,528)
Net working capital, work in progress 8,070 - - 8,070 - 8,070
Net working capital, tax equity - (14,787) - (14,787) - (14,787)
Net working capital, other items 7,932 62 1,243 9,237 1,034 10,271
Derivatives, net (43,155) (7,236) (9,636) (60,027) 1,510 (58,517)
Decommissioning obligations (6,314) (1,577) (1,415) (9,306) - (9,306)
Other provisions (2,388) (11) (1,310) (3,709) (2,207) (5,916)
Tax, net 11,445 (4,258) 989 8,176 662 8,838
Other receivables and other payables, net (4,265) (10) 3 (4,272) (597) (4,869)
Capital employed at 30 June 80,485 21,671 (1,385) 100,771 1,954 102,725
Return on capital employed (ROCE), % - - - - - 14.8
Cash flow from operating activities (2,160) 1,106 3,765 2,711 (393) 2,318
Gross investments (10,805) (2,218) (158) (13,181) (23) (13,204)
Divestments 2,121 44 (2) 2,163 31 2,194
Free cash flow (FCF) (10,844) (1,068) 3,605 (8,307) (385) (8,692)
Consolidated financial statements
Interim financial report First half year 2023
27/38
2. Segment information (continued)
The column ’Other activities/eliminations’ primarily
covers the elimination of inter-segment transactions.
It also includes income and costs, assets and
liabilities, investment activity, taxes, etc., handled at
Group level.
1 Including the elimination of other activities, the total
elimination of intra-group revenue amounts to
DKK 1,185 million (Q2 2022: 1,639 million), which
primarily relates to our Shared Functions services as
well as our B2B business activities.
Q2 2023, income statement and FCF
DKKm Offshore Onshore
Bioenergy
& Other
Reporting
segments
Other
activities/
eliminations Total
External revenue 11,233 647 4,589 16,469 8 16,477
Intra-group revenue 289 (22) (129) 138 (138)
1
-
Revenue 11,522 625 4,460 16,607 (130) 16,477
Cost of sales (7,293) (42) (4,299) (11,634) (24) (11,658)
Employee costs and other external expenses (2,336) (426) (741) (3,503) 286 (3,217)
Gain (loss) on disposal of non-current assets 1,179 - - 1,179 - 1,179
Additional other operating income and expenses (73) 638 (1) 564 - 564
Share of profit (loss) in associates and joint ventures (20) (3) (2) (25) - (25)
EBITDA 2,979 792 (583) 3,188 132 3,320
Depreciation and amortisation (1,761) (458) (170) (2,389) (65) (2,454)
Operating profit (loss) (EBIT) 1,218 334 (753) 799 67 866
Cash flow from operating activities 1,193 (359) 984 1,818 629 2,447
Gross investments (5,480) (1,917) (89) (7,486) (12) (7,498)
Divestments (2,007) (1) (3) (2,011) (27) (2,038)
Free cash flow (FCF) (6,294) (2,277) 892 (7,679) 590 (7,089)
Q2 2022, income statement and FCF
DKKm
External revenue 15,990 730 9,570 26,290 5 26,295
Intra-group revenue 1,346 - (388) 958 (958)
1
-
Revenue 17,336 730 9,182 27,248 (953) 26,295
Cost of sales (12,252) (11) (7,970) (20,233) 944 (19,289)
Employee costs and other external expenses (1,997) (367) (577) (2,941) - (2,941)
Gain (loss) on disposal of non-current assets (27) 43 5 21 - 21
Additional other operating income and expenses (1,155) 680 5 (470) (2) (472)
Share of profit (loss) in associates and joint ventures (1) - 2 1 - 1
EBITDA 1,904 1,075 647 3,626 (11) 3,615
Depreciation and amortisation (1,671) (382) (193) (2,246) (58) (2,304)
Operating profit (loss) (EBIT) 233 693 454 1,380 (69) 1,311
Cash flow from operating activities 46 1,294 1,326 2,666 (311) 2,355
Gross investments (5,257) (997) (107) (6,361) (11) (6,372)
Divestments 176 44 6 226 41 267
Free cash flow (FCF) (5,035) 341 1,225 (3,469) (281) (3,750)
Consolidated financial statements
Interim financial report First half year 2023
28/38
Revenue was DKK 45,846 million. The
decrease of 24 % relative to the first half year
of 2022 was primarily driven by significantly
lower power and gas prices across all markets
as well as lower volumes of gas sold.
Revenue from construction agreements was
DKK 703 million in H1 2023 and mainly
related to the construction of Borkum
Riffgrund 3 for partners.
Income from government grants in Offshore
increased relative to the first half year of 2022
due to lower power prices, leading to a higher
subsidy per MWh produced.
3. Revenue
Revenue
DKKm Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
2023
total Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
2022
total
Generation of power 4,801 830 3,717 - 9,348 4,959 1,046 5,304 - 11,309
Sale of power 20,800 1 255 (245) 20,811 23,232 - 3,225 (2,201) 24,256
Revenue from construction of wind farms and transmission assets 558 145 - - 703 4,095 - - - 4,095
Generation and sale of heat and steam - - 1,999 - 1,999 - - 1,710 - 1,710
Sale of gas - - 3,560 - 3,560 - - 12,337 - 12,337
Distribution and transmission - - 123 (1) 122 - - 121 (2) 119
O&M and other services 1,909 112 563 (286) 2,298 1,141 19 160 (13) 1,307
Total revenue from customers 28,068 1,088 10,217 (532) 38,841 33,427 1,065 22,857 (2,216) 55,133
Government grants 3,990 240 245 - 4,475 2,529 329 301 - 3,159
Miscellaneous revenue 1,608 18 888 16 2,530 1,186 26 498 55 1,765
Total revenue 33,666 1,346 11,350 (516) 45,846 37,142 1,420 23,656 (2,161) 60,057
Timing of revenue recognition from customers
At a point in time 22,200 1,088 6,241 (532) 28,997 24,955 1,065 13,694 (2,216) 37,498
Over time 5,868 - 3,976 - 9,844 8,472 - 9,163 - 17,635
Total revenue from customers 28,068 1,088 10,217 (532) 38,841 33,427 1,065 22,857 (2,216) 55,133
Consolidated financial statements
Interim financial report First half year 2023
29/38
3. Revenue (continued)
Revenue
DKKm Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
Q2 2023
total Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
Q2 2022
total
Generation of power 1,805 322 1,202 - 3,329 2,909 493 2,348 -
5,750
Sale of power 6,706 1 106 10 6,823
10,282 - 1,478 (966) 10,794
Revenue from construction of wind farms and transmission assets (14) 75 - - 61
2,356 - - - 2,356
Generation and sale of heat and steam - - 516 - 516
- - 504 - 504
Sale of gas - - 1,306 - 1,306 - - 5,004 (31) 4,973
Distribution and transmission - - 74 (1) 73
- - 54 - 54
O&M and other services 985 85 280 (147) 1,203 420 7 85 (11) 501
Total revenue from customers 9,482 483 3,484 (138) 13,311 15,967 500 9,473 (1,008) 24,932
Government grants 1,838 80 108 - 2,026 1,210 168 98 - 1,476
Miscellaneous revenue 202 62 868 8 1,140 159 62 (389) 55 (113)
Total revenue 11,522 625 4,460 (130) 16,477 17,336 730 9,182 (953) 26,295
Timing of revenue recognition from customers
At a point in time 6,643 483 2,318 (138) 9,306 10,138 500 6,010 (1,008) 15,640
Over time 2,839 - 1,166 - 4,005 5,829 - 3,463 - 9,292
Total revenue from customers 9,482 483 3,484 (138) 13,311 15,967 500 9,473 (1,008) 24,932
Consolidated financial statements
Interim financial report First half year 2023
30/38
4. Other operating income and expenses
Other operating income
‘Gain on divestment of assets’ in H1 2023 was
primarily related to adjustment of provisions
towards partners as well as other minor
adjustments to finalised projects.
In H1 2022, ’Gain on divestment of assets’
primarily concerned our 50 % farm-down of
Borkum Riffgrund 3.
The development in ’US tax credits and tax
attributes’ was mainly due to the newly
commissioned wind farms in 2022, which have
had full impact in H1 2023.
5. Financial income and expenses
The table shows net financial income and expenses corresponding to our
internal reporting.
‘Exchange rate adjustments, net’ is mainly affected by intercompany balances
between entities with different functional currency and does not impact the
statement of cash flows or interest-bearing net debt.
‘Value adjustments of derivatives, net’ and ‘Value adjustments of securities,
net’ were both impacted by the significant increase in interest rates in the first
half year of 2022, as we use interest rate swaps to adjust the maturity of our
bond portfolio and thereby reduce the interest rate risk of our bond portfolio.
Other operating income
DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Gain on divestment of assets 1,350 1,940 1,203 48
US tax credits and tax attributes 1,396 1,247 637 679
Other compensation 275 97 152 47
Miscellaneous operating income 213 149 146 83
Total other operating income 3,234 3,433 2,138 857
Other operating expenses
DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Ineffective hedges, etc. 414 1,260 350 1,260
Loss on divestment of assets 47 56 24 27
Miscellaneous operating expenses 38 68 21 21
Total other operating expenses 499 1,384 395 1,308
Net financial income and expenses
DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Interest expenses, net (869) (682) (468) (478)
Interest expenses, leasing (139) (115) (72) (70)
Interest element of provisions, etc. (352) (239) (175) (136)
Tax equity partner's contractual return (504) (563) (250) (326)
Value adjustments of derivatives, net (170) 1,116 (68) 720
Value adjustments of securities at market
value, net (141) (1,249) (60) (621)
Exchange rate adjustments, net (1,183) 379 (730) 401
Other financial income and expenses 42 19 26 24
Net financial income and expenses (3,316) (1,334) (1,797) (486)
Consolidated financial statements
Interim financial report First half year 2023
31/38
7. Reserves6. Gross and net investments
Gross and net investments
DKKm H1 2023 H1 2022 Q2 2023 Q2 2022
Cash flows from investing activities (22,697) (10,822) (8,013) (6,012)
Dividends received and capital reductions
reversed - (22) - (22)
Purchase and sale of securities, reversed 6,474 (448) 576 (269)
Loans to associates and joint ventures, reversed 45 - 45 -
Sale of non-current assets, reversed (88) (1,912) (106) (69)
Gross investments (16,266) (13,204) (7,498) (6,372)
Transactions with non-controlling interests in
connection with divestments and acquisitions (2,142) 282 (2,144) 198
Sale of non-current assets 88 1,912 106 69
Divestments (2,054) 2,194 (2,038) 267
Net investments (18,320) (11,010) (9,536) (6,105)
Reserves 2023
DKKm
Foreign
currency
translation
reserve
Hedging
reserve
Total
reserves
Reserves at 1 January (725) (25,742) (26,467)
Exchange rate adjustments 1,094 - 1,094
Value adjustments of hedging reserve - 17,300 17,300
Value adjustments transferred to:
Revenue - (712) (712)
Other operating income - gain on divestment of assets (80) 21 (59)
Other operating expenses - 414 414
Financial income and expenses - 47 47
Tax:
Tax on hedging and currency adjustments (317) (3,566) (3,883)
Movement in comprehensive income for the period 697 13,504 14,201
Total reserves including tax at 30 June (28) (12,238) (12,266)
Total reserves excluding tax at 30 June (547) (14,683) (15,230)
Reserves 2022
DKKm
Reserves at 1 January 1,475 (26,253) (24,778)
Exchange rate adjustments 827 - 827
Value adjustments of hedging reserve - (39,276) (39,276)
Value adjustments transferred to:
Revenue - 8,063 8,063
Financial income and expenses - (457) (457)
Property, plant, and equipment - (69) (69)
Tax:
Tax on hedging and currency adjustments 240 6,204 6,444
Movement in comprehensive income for the period 1,067 (25,535) (24,468)
Total reserves including tax at 30 June 2,542 (51,788) (49,246)
Total reserves excluding tax at 30 June 2,341 (65,128) (62,787)
Interim financial report First half year 2023
32/33
Consolidated financial statements
Tax on profit (loss) for the period
Tax on profit (loss) was DKK -292 million for
the first half year of 2023 compared to
DKK 1,484 million for the first half year of
2022.
Effective tax rate
The effective tax rate for the first half year of
2023 was -12 %. The effective tax rate was
affected by the reversal of the recognised
deferred tax liability in the US related to tax
Effective tax rate
The effective tax rate for the first half year of 2023 was calculated on the
basis of the profit (loss) before tax.
‘Other adjustments’ include changes in tax rates, movements in uncertain tax
positions, tax concerning previous years, and non-recognised tax losses.
8. Tax on profit (loss) for the period
equity contributions for Ocean Wind 1,
following our signed agreement in January to
acquire PSEG’s 25 % equity stake in the
offshore wind energy project Ocean Wind 1.
The impact is partly offset by the continued
recognition of a deferred tax liability in the US
related to tax equity contributions for the
solar centre Old 300 and the offshore
windfarm South Fork Wind. The deferred tax
liabilities regarding Old 300 and South Fork
Wind will increase until COD.
Accounting policies
Effective tax rate
The estimated average annual tax rate is
separated into four different categories:
1) ordinary business activities, 2) gain (loss)
on divestments, 3) impacts from tax equity
partnerships in the US, and 4) other adjust-
ments not related to the current year’s
profit (loss).
H1 2023 H1 2022
Tax for the period
DKK
Profit (loss)
before tax Tax Tax in %
Profit (loss)
before tax Tax Tax in %
Tax equity, deferred tax liability 796 n.a. (587) n.a.
Gain (loss) on divestment of enterprises and assets - - n.a. 1,463 - n.a.
Other adjustments (231) n.a. 304 n.a.
Remaining business 2,372 (273) 12 % 5,991 (1,201) 20 %
Effective tax for the period 2,372 292 (12) % 7,454 (1,484) 20 %
Consolidated financial statements
Interim financial report First half year 2023
33/38
Ţ
For USD and NTD, we manage our
risk to a natural time spread bet-
ween front-end capital expenditures
and long-term revenue. We
therefore see our hedges increase
our net exposure in the five year
horizon and reduce our exposure in
the longer horizon.
We do not deem EUR to constitute a
risk, as we expect Denmark to
maintain its fixed exchange-rate
policy.
Ţ
Our power exposure before and
after hedging has decreased
significantly in 2023 due to the
decrease in power prices.
The exposures are based on market
prices as of 30 June 2023.
Energy exposure 1 July 2023 - 30 June 2028
DKKbn
Currency exposure 1 July 2023 - 30 June 2028
DKKbn
9. Market risks
Ţ
Due to decreases in energy prices in
2023, the loss on hedges and power
purchase agreements (PPAs) has
been reduced.
At 30 June 2023, the pre-tax loss of
the hedging reserve was DKK 14.7
billion, of which DKK 15.6 billion will
be transferred to EBITDA over the
coming periods, as shown in the
table. The losses will be countered
by a higher sales price on our future
power production.
EBITDA impact from hedges and financial PPAs
DKKbn
Market risk management
Our most significant market risks relate to:
energy and commodity prices
foreign exchange rates
interest rates and inflation.
The overall objective of our risk management
is to:
increase the predictability of the short-term
earnings and FFO/NIBD by securing the price
of energy and currency
protect the long-term real value of
shareholders’ investments in Ørsted by
matching fixed nominal cash flows from our
assets with fixed nominal debt.
For more details on our market risks, please
see notes 6.1-6.4 in the annual report for 2022.
Consolidated financial statements
Interim financial report First half year 2023
34/38
Market values are determined by the Risk
Management function, which reports to the
Group CFO. The development in market values
is monitored on a continuing basis and
reported to the Group Executive Team.
Significant non-observable inputs
Market values based on non-observable input
comprise primarily long-term contracts on the
Valuation principles and key assumptions
In order to minimise the use of subjective
estimates or modifications of parameters
and calculation models, it is our policy to
determine fair values based on the external
information that most accurately reflects the
market values. We use pricing and benchmark
services to increase data quality.
Ş
The table shows the
movements during the year
in the total market value
(assets and liabilities) of
derivatives valued on the
basis of non-observable
inputs.
10. Fair value measurement
purchase or sale of power and gas. Since there
are no active markets for the long-term power
and gas prices, the market values have been
determined through an estimate of the future
prices.
Estimating non-observable power prices
Since our CPPAs are normally settled on the
actual production, and the power prices avail-
able in the market are based on a constant
production (flat profile), we take into account
that our expected production is not constant,
and thus, our CPPAs will not be settled against
a flat profile (intermittency adjustment). For
the majority of our markets, the flat profile
power price can be observed for a maximum of
four to six years in the market, after which an
active market no longer exists.
Ţ
The table shows the
significant unobservable
inputs used in the fair value
measurements categorised
as ‘non-observable input’,
together with a sensitivity
analysis as at 30 June 2023.
If intermittency-adjusted
power prices in Germany as
of 30 June 2023 increased
by 25 %, the market value
would decrease by
DKK 1,408 million.
Assets Liabilities
Fair value hierarchy
DKKm
Inventories Securities Derivatives Derivatives
2023
Quoted prices 1,395 - 7,370 8,278
Observable input - 31,458 6,816 12,520
Non-observable input - - 570 9,825
Total 30 June 2023 1,395 31,458 14,756 30,623
2022
Quoted prices 4,816 - 19,537 24,802
Observable input - 19,508 32,212 65,481
Non-observable input - - 450 20,433
Total 30 June 2022 4,816 19,508 52,199 110,716
Derivatives valued on the basis of
non-observable input
DKKm 2023 2022
Market value at 1 January (14,687) (7,448)
Value adjustments through profit or loss 614 (956)
Value adjustments through other
comprehensive income 4,399 (7,922)
Sales/redemptions 295 700
Purchases/issues (3) (1,910)
Transferred from quoted prices and
observable input - (2,483)
Transferred to quoted prices and observable
input 127 36
Market value at 30 June (9,255) (19,983)
Non-observable input per commodity
price input
DKKm 2023 2022
US power prices (6,063) (6,910)
German power prices (2,732) (6,565)
UK power prices (160) -
Irish power prices (316) -
Other power prices 106 (6,285)
Gas prices (90) (223)
Total (9,255) (19,983)
Overview of significant
non-observable inputs and
sensitivities
Power price per MWh (DKK) Sensitivity (DKKm)
Weight
average
Monthly
minimum
Monthly
maximum
+25 % -25 %
Intermittency-adjusted power price
Germany (2025-2034) 526 385 1,066 (1,408) 1,408
Ireland (2023-2042) 588 409 1,091 (78) 78
US ERCOT (2022-2030) 251 87 868 (3,155) 3,358
US SPP (2022-2030) 199 134 377 (484) 658
US MISO (2022-2033) 321 224 477 (577) 551
Consolidated financial statements
Interim financial report First half year 2023
35/38
Interest-bearing net debt totalled DKK 43,924 million at 30 June 2023, which was an increase of
DKK 13,353 million relative to 31 December 2022. The main changes in the composition of our net
debt compared to 31 December 2022 was an increase in bond debt of DKK 16,346 million, partly
countered by an increase in securities and cash of DKK 1,949 million.
11. Interest-bearing debt and FFO
Market value of bond and bank debt
At 30 June 2023, the market values of bond
and bank debts were DKK 65.8 billion and
DKK 8.2 billion, respectively.
Changes in bond and bank debt
In February 2023, Ørsted issued three green
bonds at a total nominal amount of
EUR 2,000 million. The bonds were issued
under the existing debt issuance programme
(EMTN programme):
EUR 700 million with maturity in 2026 at a
fixed interest rate of 3.625 %
EUR 600 million with maturity in 2030 at
a fixed interest rate of 3.750 %
EUR 700 million with maturity in 2035 at a
fixed interest rate of 4.125 %.
In June 2023, we issued a EUR 100 million blue
bond with maturity in 2028 and a fixed
interest rate of 3.625 %. The net proceeds
from the issuance will be allocated to
investments in offshore biodiversity.
Interest-bearing debt and interest-bearing assets
DKKm
30 June
2023
31 December
2022
30 June
2022
Interest-bearing debt:
Bank debt 8,591 8,913 14,049
Bond debt 70,714 54,368 44,410
Total bond and bank debt 79,305 63,281 58,459
Tax equity liability 1,205 1,236 1,437
Lease liability 8,464 8,266 8,555
Other interest-bearing debt:
Debt in connection with divestments 2,901 2,904 -
Debt from receiving collateral under credit support annexes 431 1,196 2,734
Other interest-bearing debt 166 824 724
Total interest-bearing debt 92,472 77,707 71,909
Interest-bearing assets:
Securities 31,458 25,197 19,508
Cash 11,866 16,178 5,093
Cash, not available for use 263 2,471 2,269
Other receivables:
Receivables from placing collateral under credit support
annexes 3,715 2,449 2,833
Receivables in connection with divestments 765 713 757
Other receivables 437 128 -
Total interest-bearing assets 48,548 47,136 30,460
Total net interest-bearing debt 43,924 30,571 41,449
Consolidated financial statements
Interim financial report First half year 2023
36/38
11. Interest-bearing debt and FFO (continued)
1 Last 12 months.
Adjusted interest-bearing net debt
DKKm
30 June
2023
31 December
2022
30 June
2022
Total interest-bearing net debt 43,924 30,571 41,449
50 % of hybrid capital 9,552 9,897 8,992
Other interest-bearing debt, add back (3,498) (4,924) (3,458)
Other interest-bearing receivables, add back 4,917 3,290 3,590
Cash and securities not available for distribution,
excluding repo loans 669 3,241 3,054
Total adjusted interest-bearing net debt 55,564 42,075 53,627
Funds from operations (FFO)/
adjusted interest-bearing net debt, %
30 June
2023
31 December
2022
30 June
2022
Funds from operations (FFO)/
adjusted interest-bearing net debt 17.7 % 42.7 % 39.0 %
We aim to have a long-term FFO/adjusted NIBD at above 25 %, in line with the rating agencies.
Funds from operations (FFO) LTM
1
DKKm
30 June
2023
31 December
2022
30 June
2022
EBITDA 29,242 32,057 24,282
Change in provisions and other adjustments (1,174) (2,213) (2,128)
Change in derivatives 1,786 (8,687) (6,791)
Variation margin (add back) (5,855) 10,332 11,514
Reversal of gain (loss) on divestment of assets (10,304) (10,885) (4,127)
Income tax paid (2,240) (1,263) (712)
Interest and similar items, received/paid (972) (563) (85)
Reversal of interest expenses transferred to assets (472) (586) (812)
50 % of coupon payments on hybrid capital (202) (264) (237)
Dividends received and capital reductions 1 23 23
Funds from operations (FFO) 9,810 17,951 20,927
Consolidated financial statements
Interim financial report First half year 2023
37/38
Financial resources
DKK billion
12. Financial resources
risk that will occur if we gain on the
transaction.
We are trading under both types of
agreements to increase the number of
counterparties with whom we are engaging to
achieve the most optimal prices.
To mitigate and limit the potential negative
impact on our cash position from temporary
fluctuations in market prices, we actively
manage the volumes of trade between trading
with and without collateral arrangements.
As of 30 June 2023, 3 % (2022: 31 %)
of our power and gas trades and 90 %
(2022: 86 %) of our currency, inflation, and
interest rate hedges had daily margin
settlements.
To limit cash impact, we also provide non-cash
collateral as parent company and bank
Financial resources
At 30 June 2023, financial resources
amounted to DKK 85.2 billion (31 December
2022: DKK 97.8 billion). The financial resources
were in particular built up during 2022 to
ensure sufficient liquidity to cope with
collateral payments and continuing invest-
ments in the green transformation.
During the quarter, we issued blue bonds
denominated in EUR with proceeds equivalent
to DKK 0.7 billion.
Collateral and margin postings
When we trade in derivatives to execute our
hedging strategy, we have two alternatives:
Trading on exchanges where the market
value is settled on an ongoing basis
through receipt or placing of collateral.
Trading OTC where we accept the credit
DKK 97.8 billion
DKK 85.2 billion
Collateral and margin postings
DKK billion
DKK 17.3 billion
DKK 10.6 billion
Ŝ
Initial margin and variation margins
relate to energy hedges, and the
credit support annex (CSA) relates to
currency, inflation, and interest rate
hedges. Other collateral mainly
relates to insurance liabilities and
escrow accounts. Further securities
can be placed as collateral in repo
transactions as part of our cash
management.
guarantees, where possible. At the end of
June 2023, we had covered EUR 0.6 billion in
collateral for initial margins and variation
margins on energy hedges through a parent
company guarantee.
Our collateral and margin payments related
to trading with derivatives and collateral
related to insurance liabilities and escrow
accounts have decreased from DKK 17.3 billion
at 31 December 2022 to DKK 10.6 billion at
30 June 2023. The decrease was primarily dri-
ven by the large decrease in power and gas
prices. Collateral payments related to initial
margins and variation margins decreased by
DKK 2.3 billion and DKK 4.3 billion,
respectively, during the first half year and
amounted to DKK 6.8 billion at 30 June 2023.
The decrease in initial margins and variation
margins consists of DKK 6.3 billion in cash and
DKK 0.3 billion in bonds.
Consolidated financial statements
Interim financial report First half year 2023
38/38
most significant risks and uncertainties have
occurred relative to the disclosures in the
annual report for 2022.
The Board of Directors and the Executive
Board have today considered and approved
the interim financial report of Ørsted A/S for
the period 1 January - 30 June 2023.
The interim financial report, which has not
been audited or reviewed by the company’s
independent auditors, has been prepared in
accordance with IAS 34 'Interim Financial
Reporting' as adopted by the EU and
additional requirements in the Danish
Financial Statements Act. The accounting
policies remain unchanged from the annual
report for 2022.
In our opinion, the interim financial report
gives a true and fair view of the Group's
assets, liabilities, and financial position at
30 June 2023 and of the results of the Group's
operations and cash flows for the period
1 January - 30 June 2023.
Furthermore, in our opinion, the Management's
review gives a fair presentation of the
development in the Group's operations and
financial circumstances, of the results for the
period, and of the overall financial position of
the Group as well as a description of the most
significant risks and elements of uncertainty
facing the Group.
Over and above the disclosures in the interim
financial report, no changes in the Group's
Skærbæk, 10 August 2023
Mads Nipper
Group President and CEO
Daniel Lerup
CFO
Thomas Thune Andersen
Chair
Andrew Brown
Peter Korsholm
Leticia Francisca Torres
Mandiola*
Lene Skole
Deputy Chair
Jørgen Kildahl
Dieter Wemmer
Alice Florence Marion
Vallienne*
Annica Bresky
Julia King, the Baroness
Brown of Cambridge
Benny Gøbel*
Anne Cathrine Collet Yde*
*Employee-elected board member
Executive Board:
Board of Directors:
Statement by the Executive Board
and the Board of Directors
Henriette Fenger Ellekrog
Chief HR Officer
19/38
Management’s review
Interim financial report First half year 2023
Ørsted A/S
CVR no. 36213728
Kraftværksvej 53
DK-7000 Fredericia
Tel.: +45 9955 1111
orsted.com
Group Communication
Martin Barlebo
Tel.: +45 9955 9552
Investor Relations
Rasmus Keglberg Hærvig
Tel.: +45 9955 9095
Front page image
Wind technicians onboard CTV in Taichung,
Taiwan
Publication
10 August 2023
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