Interim financial report
First quarter 2022
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Interim financial report
First quarter 2022
Management’s review
Overview
CEO’s review 3
At a glance 7
Outlook 8
Results Q1 9
Business units’ results 12
Performance highlights 16
Quarterly overview 17
Financial statements
Consolidated financial statements
Consolidated statements of income Q1 19
Consolidated balance sheet 20
Consolidated statement of shareholder’s equity 21
Consolidated statement of cash flows 22
Notes
1. Basis of reporting 23
2. Segment information 24
3. Revenue 26
4. Other operating income and expenses 27
5. Financial income and expenses 27
6. Gross and net investments 28
7. Reserves 28
8. Tax on profit (loss) for the period 29
9. Market risks 30
10. Fair value measurement 31
11. Interest-bearing debt and FFO 32
Management’s statement
Statement by the Executive Board and the
Board of Directors
33
Contents
Earnings call
In connection with the presentation of the interim
financial report, an earnings call for investors and
analysts will be held on Friday, 29 April 2022 at
14:00 CEST:
Denmark: +45 78 15 01 10
International: +44 333 300 9261
USA: +1 646 722 4956
The earnings call can be followed live here:
https://edge.media-server.com/mmc/p/gk6ha8rm
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, Q1 2022
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Management’s review
Interim financial report First quarter 2022
we make a net profit from the Gazprom Export
contract in 2022 it will be donated to humani-
tarian aid in Ukraine.
Financials
Operating profit (EBITDA) totalled DKK 9.4
billion, of which the gain from the 50 % farm-
down of Borkum Riffgrund 3 amounted to DKK
1.6 billion. Thus, EBITDA excluding new partner-
ships amounted to DKK 7.8 billion, an increase
of DKK 3.0 billion compared to the same
period last year.
The continued very high power prices across
the markets we operate in had a significant
opposite impact on our financial performance
in our Offshore and Bioenergy businesses,
which to a large degree offset each other.
Earnings from our wind and solar assets in
operation amounted to DKK 4.8 billion, which
was a decrease of DKK 0.5 billion compared to
the same period last year. We maintained
good availability rates during the first quarter.
However, later than expected commissioning
of Hornsea 2 led to us being overhedged,
which together with very high and volatile
power prices led to a loss on ineffective hedg-
es of DKK 1.6 billion. This was partly offset by
ramp-up of generation from new assets and
higher wind speeds.
We continued to see strong results from our
CHP plants during the first quarter, as they
benefitted from the high power prices and
spreads on the part of our power generation
Russian invasion of Ukraine
We strongly condemn Russia’s invasion of
Ukraine and find the situation deeply disturb-
ing. The Russian aggression goes against
everything we stand for, and we are disturbed
by the human suffering going on in Ukraine at
this moment. We have made financial contri-
butions to UNICEF and Polish Humanitarian
Action and continue to support Ukraine and
our affected colleagues. We are taking every
step possible to stop our cooperation with
Russian companies, including ceasing all
sourcing of biomass and coal for our power
stations.
We welcome the EU’s focus to stop its de-
pendence on Russian oil and gas and speed up
the green transformation of EU’s energy
sector. The recent developments have led to
several countries accelerating their renewable
energy targets and lessening their dependence
on oil and gas. We welcome these steps and
are ready to help drive the accelerated green
build-out.
Furthermore, we will swiftly and strictly imple-
ment any sanctions impacting the gas supply
from Russia. However, until any such sanctions
are in place, we will continue to offtake the
minimum required gas stipulated in our long-
term gas purchase contract with Gazprom
Export. The contract expires in 2030 and
cannot be terminated at this point in time. Gas
is not a core business for Ørsted, and we are in
general not entering into new long-term
contracts or extending our current contracts. If
CEO’s review
Strong operational and financial results and continued strategic pro-
gress with full year EBITDA guidance unchanged.
Financials
Our operating profit (EBITDA) for the first
quarter amounted to DKK 9.4 billion
(including new partnerships), a DKK 4.6 bil-
lion increase compared to the same period
last year. EBITDA excluding new partner-
ships amounted to DKK 7.8 billion, DKK 3.0
billion higher than in the same period last
year.
We reiterate our EBITDA guidance of DKK
19-21 billion excluding new partnerships and
our gross investments guidance of DKK
38-42 billion.
Our green share of heat and power genera-
tion amounted to 92 %.
Construction and operational progress
First power achieved on Greater Changhua 1
& 2a.
All foundations, array cables, and wind tur-
bines successfully installed at Hornsea 2.
However, the commissioning of the individu-
al wind turbines has been progressing slow-
er, and the ramp-up profile has been de-
layed compared to our internal expecta-
tions at year-end.
Haystack commissioned, our first onshore
wind farm in Nebraska, US.
Business development
Signed an agreement to farm down 50 % of
Hornsea 2 to a consortium comprising of
AXA IM Alts and Crédit Agricole Assurances.
Completed the farm-down of 50 % of
Borkum Riffgrund 3 to Glennmont Partners.
Took FID on the 130 MW offshore wind farm
South Fork located outside of New York,
USA.
Signed a landmark green fuels letter of in-
tent with Maersk, where we will develop an
e-methanol facility on the US Gulf Coast
with the aim of fuelling Maersk’s newly or-
dered fleet of 12 methanol-powered vessels.
Highlights
Management’s review
4/33
Interim financial report
First quarter 2022
commissioning the wind farm, expectedly
during summer.
In April, we achieved first power at Greater
Changhua 1 & 2a. We have successfully in-
stalled 40 jacket foundations out of 111. We
continue to make good progress in all areas of
the construction, and we expect to commis-
sion the wind farm during H2 2022. However,
we continue to see Taiwan being affected by
COVID-19 restrictions, which can potentially
still affect the construction schedule and
eventually lead to delays.
In our onshore business, we are currently
constructing the solar PV farm Old 300 and
our first combined onshore wind and solar PV
project Helena Energy Center in the US. The
wind portion of the Helena Energy Center is
expected to be commissioned during 2022,
whereas the commissioning of the solar por-
tion of Helena Energy Center is expected to be
delayed into 2023, and the commissioning of
Old 300 is expected to be pushed to H1 2023.
Both solar PV farms are delayed due to con-
tinued challenges in the solar panel supply
chain. In Europe, we are constructing three
onshore wind farms, Kennoxhead 1 (62 MW) in
Scotland, Ballykeel (16 MW) in Northern Ire-
land and Lisheen 3 (29 MW) in Ireland. Lisheen
3 is adjacent to the existing Lisheen 1 & 2
projects, which together form an 89 MW
cluster. Both wind farms are expected to reach
COD in 2022.
In March, we commissioned Haystack in Ne-
braska, US. The wind farm has a capacity of
298 MW and expands our geographic footprint
into the rapidly growing green energy market
in the Midwest. Power generation from Hay-
stack is fully contracted under long-term
that was not hedged. Earnings from our gas
business was higher than in Q1 2021, primarily
due to a temporary positive impact from the
high gas prices through a revaluation of our
gas at storage and from optimising the offtake
flexibility in some of our sourcing contracts in
north-western Europe. In contrast, our decision
to unwind gas hedges related to the Gazprom
Export contract to balance our risk if gas
supplies from Russia are terminated led to a
net loss on the Gazprom Export sourcing
contract in the quarter.
We maintain our full-year EBITDA guidance of
DKK 19-21 billion excluding earnings from new
partnerships during the year, i.e. excluding the
gain from the 50 % farm-down of Borkum
Riffgrund 3 and expectedly Hornsea 2.
Our green share of heat and power generation
amounted to 92 % in Q1 2022, an increase of 5
percentage points compared to the same
period last year. The development was primari-
ly due to more wind and solar farms in opera-
tion, higher wind speeds, and warmer weather
leading to lower CHP generation on coal.
Construction and operational progress
We are constructing two of the largest off-
shore wind farms in the world, Hornsea 2 and
Greater Changhua 1 & 2a, which are both on
track to be commissioned later this year.
At Hornsea 2, we have successfully installed all
foundations, array cables, and wind turbines.
However, the commissioning of the individual
wind turbines has been progressing slower,
and the ramp-up profile has been delayed
compared to our internal expectations at year-
end. We are now electrifying and waiting for
all wind turbines to pass the final tests before
Willow Creek wind farm in
South Dakota, US.
Management’s review
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Interim financial report
First quarter 2022
CPPAs, which entails an attractive incremen-
tal source of stable earnings.
Business development
Offshore
In March, we signed an agreement to farm
down 50 % of Hornsea 2 to a consortium
comprising of AXA IM Alts and Crédit
Agricole Assurances at a transaction value of
GBP 3 billion. The two partners will each own
25 % of the project. As part of the agreement,
we will construct the wind farm under a full-
scope EPC contract, perform operations and
maintenance services for 20 years, and
provide a route to market for the power
generated. The transaction is subject to full
commissioning of Hornsea 2 and certain
regulatory approvals, including from relevant
competition authorities, and is expected to
close in the second half of 2022.
In February, we completed the farm-down of
Borkum Riffgrund 3 to Glennmont Partners.
The 900 MW wind farm is expected to be
completed in 2025. As part of the agreement,
we will construct the wind farm under a full-
scope EPC contract, perform operations and
maintenance services for 20 years, and
provide a route to market for the power and
green certificates generated by the wind
farm.
Also in February, we took FID on South Fork
located outside of New York, US. The 130 MW
offshore wind farm is expected to be com-
pleted by the end of 2023, will provide clean
energy to more than 70,000 households in
New York, and will help advance New York’s
nation-leading clean energy goals.
In April, we submitted seabed lease applica-
tions in the Baltic Sea in Poland together
with our partner ZE PAK. Poland has passed
the Offshore Wind Act, which is an ambition
to diversify the country’s energy mix through
a large-scale buildout of renewables, aiming
to install 5.9 GW offshore wind by 2030 and
11 GW by 2040. Together with our partner,
we look forward to contributing to Poland’s
high ambitions and renewable build-out.
We have signed an agreement with Repsol
to jointly identify and develop floating
offshore wind projects in Spain. This marks
our first entry into the Spanish offshore wind
market, following the Spanish government’s
announcement that they aim to install up to
3 GW of floating offshore wind by 2030.
Repsol and Ørsted have an ambition of
jointly becoming a leading developer in
Spanish offshore wind by combining their
complementary strengths.
In April, we joined a floating wind joint ven-
ture off the east coast of Scotland with
Simply Blue Group and Subsea 7, designed to
provide the Scottish supply chain with an
early capacity development opportunity
before larger ScotWind projects kick off. The
100 MW project will deploy innovative and
cutting-edge floating offshore wind technol-
ogies to support the cost reduction and
learning journey needed for the commercial
deployment of floating offshore wind.
In relation to the issue with several of our
cable protection systems (CPS) discovered
back in Q1 2021, our initial assessment point-
ed to a total financial impact of around DKK
3 billion. Based on thorough investigations,
analysis, and fast reactions to stabilise the
cables since then, we have reassessed the
expected costs of reinstating the integrity of
In March, we signed a landmark green fuels letter of intent
(LoI) with Maersk. We will develop a 675 MW Power-to-X
facility that will produce approx. 300,000 tonnes of e-
methanol per year, which Maersk will offtake.
”
the cables. We now expect the costs to
amount to approx. DKK 1.3 billion.
Power-to-X
The global hydrogen and e-fuel landscape is
changing rapidly. That is why we further
strengthened our Hydrogen organisation and
rebranded it to Ørsted P2X in Q1 2022. We
continue to see strong momentum within
renewable hydrogen worldwide, and since
the publication of our annual report for 2021,
we have continued to make significant
progress in our renewable hydrogen and
green fuels pipeline.
In March, we signed a landmark green fuels
letter of intent (LoI) with Maersk. Under the
agreement, we will develop an e-methanol
facility on the US Gulf Coast with the aim of
fuelling Maersk’s newly ordered fleet of
12 methanol-powered vessels. We will devel-
op a 675 MW e-methanol facility that will
produce approx. 300,000 tonnes of e-
methanol per year, which Maersk will
offtake. The facility will be powered by
approx. 1.2 GW of renewable energy from
new onshore wind farms and solar PV farms.
The project is targeted to be commissioned
in the second half of 2025, making it by far
the most ambitious project globally for
producing e-methanol at scale and a driving
force in the decarbonisation journey of the
maritime sector. Final investment decision
could be made in late 2023.
As a result of the increased Danish ambitions
within Power-to-X, the partnership behind
the Power-to-X flagship project 'Green Fuels
for Denmark' in Copenhagen has decided to
bring forward parts of the project to produce
green fuels for heavy transport two years
earlier than previously planned.
Onshore
In April we took FID on Sunflower Wind, a 201
MW onshore wind project located in Kansas,
US. The wind farm is expected to be com-
pleted in 2023.
Employees
As we continue to see challenges regarding
the COVID-19 pandemic around the world
and due to the new refugee crisis sparked off
by Russia’s aggression in Ukraine, many of
our employees are experiencing a significant
impact on their daily lives. I would like to
Management’s review
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Interim financial report
First quarter 2022
take this opportunity to acknowledge and
thank all our employees for the great job
they have been doing throughout these
difficult times.
To further enhance our employees’ safety,
we have kicked off a new safety campaign
named ’Be aware, take care‘. We work in
challenging situations, and it is our goal that
all employees and contractors get back from
work every day without any injuries. We
believe that all injuries can be avoided, and
by becoming better at identifying, communi-
cating, and managing risk, we aim to have
world-class safety.
In February, we announced that Daniel Lerup
would take over as our new CFO when Mari-
anne Wiinholt stepped down at the annual
general meeting on 8 April. We are very
pleased to have welcomed Daniel to the
Executive Committee. He will be important in
supporting our global growth, while at the
same time keeping financial discipline to help
fulfil our ambition of becoming the world’s
leading green energy major.
Mads Nipper
Group President and CEO
7/33
Management’s review
Interim financial report First quarter 2022
At a glance
Key figures Q1 2022
Revenue DKK 33.8 bn
Gross investments DKK 6.8 bn
Capital employed DKK 106.7 bn
TRIR
1.3
ROCE, last 12 months 19.0 %
Ørsted
Number of employees: 7,016
EBITDA, DKKbn
9.4
64 %
27 %
9 %
Offshore
Onshore Bioenergy & Other
Green share of energy generation, %
87
92
2021 2022
Offshore
Number of employees: 3,551
EBITDA, DKKbn
Availability, %
95
95
2021 2022
10.5
11.3
2021 2022
3.9
5.9
2021 2022
Wind speed, m/s
Onshore
Number of employees: 276
EBITDA, DKKbn
Availability, wind, the US, %
93
96
2021 2022
7.7
7.7
2021 2022
0.2
0.8
2021 2022
Wind speed, the US, m/s
Bioenergy & Other
Number of employees: 954
EBITDA, DKKbn
74
81
2021 2022
0.6
2.5
2021 2022
Green share of energy generation, %
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Management’s review
Interim financial report First quarter 2022
EBITDA
EBITDA in 2022, excluding new partnership
agreements, is unchanged and still expected
to be DKK 19-21 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).
Our directional guidance for Bioenergy & Oth-
er has changed from ‘significantly lower’ to
‘lower’, mainly due to higher earnings from our
CHP plants. The increase in earnings in ‘Gas
Markets & Infrastructure’ in Q1 was, to a large
extent, driven by temporary positive effects
from a revaluation of our gas at storage due
to the high gas prices and is expected to part-
ly reverse later in 2022.
The directional guidance for Offshore and
Onshore is ‘significantly higher’, which is un-
changed relative to the guidance in the annu-
al report.
Gross investments
Gross investments in 2022 are expected to
amount to DKK 38-42 billion, which is un-
changed relative to the guidance in the annu-
al report.
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 2021.
Outlook 2022, DKK billion
2021 realised
Guidance
2 Feb 2022
Guidance
29 Apr 2022
EBITDA, without new partnerships 15.8
19-21
19-21
Offshore, without new partnerships 9.5
Significantly higher
Significantly higher
Onshore 1.3 Significantly higher Significantly higher
Bioenergy & Other 4.7 Significantly lower Lower
Gross investments 39.3 38-42 38-42
Outlook 2022
Service vessel, west
coast hub, UK
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 policies.
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, pre-
cipitation levels, the development in power, coal, carbon, gas, oil, currency, inflation rates, and
interest rate markets, changes in legislation, regulations, or standards, the renegotiation of
contracts, changes in the competitive 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 2021 in the chapter ‘Our risks and risk management’ and in note 6.
9/33
Management’s review
Interim financial report First quarter 2022
Financial results
Revenue
Power generation from offshore and onshore
assets increased by 24 % and totalled 7.7 TWh
in Q1 2022. Ramp-up of generation from
Hornsea 2, Sage Draw, Plum Creek, Western
Trail, Haystack, Lincoln Land, Muscle Shoals,
and Permian Energy Center as well as general-
ly higher wind speeds were partly offset by the
50 % farm-down of Borssele 1 & 2 in May 2021.
Heat generation amounted to 3.2 TWh, 17 %
lower than in the same period last year, mainly
due to warmer weather. Thermal power gen-
eration decreased by 5 % and amounted to 2.1
TWh, primarily driven by lower CHP generation
(warmer weather) partly offset by higher pow-
er condensing generation due to higher prices.
Our renewable share of generation was 92 %
in Q1 2022, 5 percentage points higher than
last year, driven by a higher share of genera-
tion from onshore renewables.
Revenue amounted to DKK 33.8 billion. The
increase of 78 % relative to Q1 2021 was pri-
marily due to the significantly higher gas and
power prices across all markets.
EBITDA
Operating profit (EBITDA) totalled DKK 9.4
billion, of which the gain from the 50 % farm-
down of Borkum Riffgrund 3 amounted to DKK
1.6 billion. Thus, EBITDA, excluding new part-
nerships, amounted to DKK 7.8 billion, an in-
crease of DKK 3.0 billion compared to the
same period last year.
Earnings from wind and solar assets in opera-
tion amounted to DKK 4.8 billion, a decrease
of DKK 0.5 billion compared to the same peri-
od last year. Ramp-up of generation from
Hornsea 2 and our onshore assets contributed
positively to our site earnings together with
higher wind speeds (approx. DKK 0.5 billion
compared to Q1 2021 and DKK 0.3 billion com-
pared to a normal wind year.) However, this
was more than offset by ineffective hedges,
primarily as a consequence of later than ex-
pected commissioning of wind turbines at
Hornsea 2 combined with very high power
prices (DKK 1.6 billion in total — of which ap-
prox. half related to Q1 2022 and the other
half to later periods), the farm-down of 50 % of
Borssele 1 & 2 in May 2021, and higher TNUoS
and BSUoS tariffs.
EBITDA from partnerships amounted to DKK
2.6 billion and was mainly related to the gain
on the 50 % farm-down of Borkum Riffgrund 3
(new partnerships) of DKK 1.6 billion. Earnings
from existing partnerships amounted to DKK
1.0 billion, an increase of DKK 1.6 billion com-
pared to Q1 2021. In Q1 2022, we had positive
earnings from finalised projects and construc-
tion work for partners at Greater Changhua 1.
In addition, Q1 2021 was negatively impacted
by a DKK 0.8 billion warranty provision to-
wards our partners related to the cable pro-
tection system issues at some of our offshore
wind farms. In Q2 2022, we have reversed DKK
0.5 billion of this provision, as we now expect
lower costs to reinstate the integrity of the
cables. Our updated estimate for the total
costs to be covered by us is DKK 1.3 billion,
down from previously DKK 3.0 billion.
EBITDA from our CHP plants amounted to
DKK 1.8 billion, an increase of DKK 1.1 billion
compared to the same period last year. The
EBITDA
DKK 9.4 billion
Offshore
Onshore
Bioenergy & Other
27 %
9 %
64 %
Results Q1
Financial results, DKKm Q1 2022 Q1 2021 %
Revenue
33,762 18,944 78 %
EBITDA
9,429 4,863 94 %
Depreciation and amortisation
(2,128) (1,930) 10 %
Operating profit (loss) (EBIT)
7,301 2,933 149 %
Gain (loss) on divestment of enterprises
108 36 200 %
Financial items, net
(848) (419) 103 %
Profit before tax
6,561 2,547 158 %
Tax on profit (loss) for the period
(860) (949) (9 %)
Tax rate
13 % 37 % (24 %p)
Profit (loss) for the period
5,701 1,598 257 %
- New partnerships
1,610 - n.a.
- EBITDA excl. new partnerships
7,819 4,863 61 %
Management’s review
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Interim financial report
First quarter 2022
increase was mainly due to higher realised
power prices and higher sales of ancillary ser-
vices. As we initially only hedge the power we
co-generate with heat, we have been able to
benefit from the high power prices on our con-
densing power generation.
EBITDA from our gas business contributed with
earnings of DKK 0.7 billion in Q1 2022, an in-
crease of DKK 0.7 billion compared to the
same period last year. The increase was to a
large extent driven by temporary positive ef-
fects from a revaluation of gas at storage at
the end of Q1 2022 due to the high gas prices.
In addition, we were able to lock in gains from
optimising the offtake flexibility in some of our
sourcing contracts in north-western Europe. In
contrast, our decision to unwind gas hedges
related to the Gazprom Export contract to
balance our risk if gas supplies from Russia
were terminated led to a net loss on the Gaz-
prom Export sourcing contract in the quarter.
EBIT
EBIT increased by DKK 4.4 billion to DKK 7.3
billion in Q1 2022, primarily as a result of the
higher EBITDA, only partly offset by higher
depreciation driven by more assets in opera-
tion.
Financial income and expenses
Net financial income and expenses amounted
to DKK -0.8 billion compared to DKK -0.4 bil-
lion in Q1 2021. The higher net expenses were
mainly due to capital losses on the bond port-
folio as a result of increasing interest rates and
higher contractual returns to tax equity part-
ners as a result of more onshore assets in oper-
ation.
Tax and tax rate
Tax on profit for the period amounted to DKK
0.9 billion, DKK 0.1 billion lower than in the
same period last year. The effective tax rate
was 13 % and was significantly impacted by
the tax-exempt gain of DKK 1.6 billion from the
50 % farm-down of Borkum Riffgrund 3 and
from prior-year adjustments.
Profit for the period
Profit for the period totalled DKK 5.7 billion,
DKK 4.1 billion higher than in Q1 2021. The in-
crease was primarily due to the higher EBITDA
explained above.
Cash flows and net debt
Cash flows from operating activities
Cash flows from operating activities totalled
DKK 0.0 billion in Q1 2022 compared to DKK
8.1 billion in Q1 2021. The decrease was mainly
driven by a cash outflow from ‘work in pro-
gress’ in Q1 2022 versus a cash inflow in Q1
2021. Furthermore, the cash flow was nega-
tively impacted by higher initial margin pay-
ments at clearing houses due to the increasing
and volatile power and gas prices as well as
higher net margin payments on unrealised
hedges. This was only partly offset by lower
gas volumes at storage and higher payables.
The net margin payments on unrealised finan-
cial instruments related to energy (part of
‘Change in derivatives’) amounted to DKK -3.3
billion in Q1 2022, but had opposite effects in
Offshore (DKK 4.1 billion outflow related to
power hedges) and Bioenergy & Other (DKK
0.8 billion inflow, primarily related to gas
hedges in our end-customer business activi-
ties). Initial margin payments to clearing hous-
es (part of ‘Change in other working capital’)
Taxonomy-eligible KPIs
The taxonomy-eligible share of revenue was 68 %, whereas the eligible share of EBITDA was
87 %, gross investments was 98 %, and OPEX was 79 %, in Q1 2022. The non-eligible part of our
revenue primarily concerned our long-term legacy activities related to sourcing and sale of
gas (22 % of revenue in Q1 2022) and non-eligible power sales (including end customer sales).
We expect the share of taxonomy-eligible revenue to increase in the coming years.
Read more about our EU taxonomy-eligible KPIs in note 2.1 in the ESG Performance Report for
the first quarter 2022.
Cash flow and net debt, DKKm Q1 2022 Q1 2021 %
Cash flows from operating activities
(37) 8,087 n.a.
EBITDA
9,429 4,863 94 %
Reversal of gain (loss) on divestments of assets
(1,863) (220) 747 %
Change in derivatives
(3,964) (811) 389 %
Change in provisions
(765) 630 n.a.
Other items
(65) (61) 7 %
Interest expense, net
(217) (254) (15 %)
Paid tax
(231) (873) (74 %)
Change in work in progress
(925) 4,611 n.a.
Change in tax equity partner liabilities
(496) (247) 101 %
Change in other working capital
(940) 449 n.a.
Gross investments
(6,832) (6,665) 3 %
Divestments
1,927 (31) n.a.
Free cash flow
(4,942) 1,391 n.a.
Net debt, beginning of period
24,280 12,343 97 %
Free cash flow
4,942 (1,391) n.a.
Dividends and hybrid coupon paid
281 5,082 (94 %)
Addition of lease obligations
53 229 (77 %)
Issuance of hybrid capital, net
- (4,356) n.a.
Exchange rate adjustments, etc.
470 1,283 (63 %)
Net debt, end of period
30,026 13,190 128 %
Management’s review
11/33
Interim financial report
First quarter 2022
2022 against DKK 85.1 billion at the end of
2021. The reduction during Q1 2022 was driven
by unrealised losses on the hedge reserve for
power hedges due to the significantly increas-
ing prices. At the end of March 2022, the post-
tax hedging and currency translation reserves
amounted to DKK 38.7 billion.
Capital employed
Capital employed was DKK 106.7 billion at the
end of March 2022 against DKK 109.4 billion at
the end of 2021, as the increase in the before-
mentioned unrealised losses on power hedges
more than outweighed new investments.
Financial ratios
Return on capital employed (ROCE)
Return on capital employed (ROCE, last 12
months) was 19 % at the end of Q1 2022. The
increase of 11.5 percentage points compared
to the same period last year was attributable
to the higher EBIT over the 12-month period.
Credit metric (FFO/adjusted net debt)
The funds from operations (FFO)/adjusted net
debt credit metric was 25 % at the end of
March against 59 % in the same period last
year. The decrease was mainly due to the
lower FFO as a result of variation margin pay-
ments and due to a higher NIBD.
Non-financial results
Green share of energy generation
The green share of energy generation amount-
ed to 92 % in Q1 2022 compared to 87 % in Q1
2021. The 5 percentage point increase was
primarily due to more wind and solar farms in
operation, higher wind speeds, and warmer
weather leading to lower CHP generation on
coal.
were a cash outflow of DKK 1.5 billion in Q1
2022.
In Q1 2022, we had a net cash outflow from
work in progress of DKK 0.9 billion, mainly from
construction work at Greater Changhua 1. In Q1
2021, we had a net cash inflow of DKK 4.6 bil-
lion, mainly from the divestment of the
Hornsea 1 offshore transmission assets, only
partly offset by construction work regarding
the offshore transmission assets at Hornsea 2.
Investments and divestments
Gross investments amounted to DKK 6.8 billion
against DKK 6.7 billion in Q1 2021. The main
investments in Q1 2022 were:
–
offshore wind farms (DKK 5.5 billion), includ-
ing Greater Changhua 1 & 2a in Taiwan,
Hornsea 2 in the UK, and our portfolio of US
projects
–
onshore wind and solar PV farms (DKK 1.2
billion), including the construction of Old
300, Helena Energy Center, Haystack, Ken-
noxhead 1, and Lisheen 3.
Divestments amounted to DKK 1.9 billion in Q1
2022 and were mainly related to the 50 %
farm-down of Borkum Riffgrund 3 with pro-
ceeds (NIBD impact) of DKK 1.9 billion.
Interest-bearing net debt
Interest-bearing net debt totalled DKK 30.0
billion at the end of March 2022 against DKK
24.3 billion at the end of 2021. The increase
was mainly due to a negative free cash flow of
DKK 4.9 billion.
Equity
Equity was DKK 76.7 billion at the end of March
Greenhouse gas emissions
Our greenhouse gas emissions from heat and
power generation (scope 1 and 2) decreased
by 13 % in Q1 2022 compared to Q1 2021.
This was due to lower generation based on
coal and natural gas at our power stations
driven by a lower heat demand as a conse-
quence of the warmer weather in Q1 2022
compared to Q1 2021.
Greenhouse gas intensity from our heat and
power generation and other operating activ-
ities decreased to 48 g CO
2
e/kWh in Q1 2022
against 59 g CO
2
e/kWh in Q1 2021. The de-
crease was mainly driven by the higher gen-
eration from our onshore assets and the
reduction in greenhouse gas emissions de-
scribed above.
Greenhouse gas emissions from our supply
chain and sales activities (scope 3) decreased
by 30 % to 3.7 million tonnes in Q1 2022. This
was driven by 31 % lower natural gas sales
as well as 31 % lower non-green power sales,
partially offset by emissions related to the
COD of Haystack in March 2022 (no CODs in
Q1 2021).
Safety
In Q1 2022, we had a total of eight recorda-
ble injuries (TRIs), of which three injuries were
related to contractors’ employees. This was
a decrease of seven injuries compared to the
Capital employed
Offshore
Onshore
Bioenergy & Other
DKK 107 billion
0 %
21 %
79 %
Key ratios, DKKm, % Q1 2022 Q1 2021 %
ROCE 19.0 7.5 12 %p
Adjusted net debt 40,132 23,341 72 %
FFO/adjusted net debt 25.0 59.4 (34 %p)
ROCE and FFO/adjusted net debt is specified in notes 2 and 11.
same period last year or a reduction of 47 %.
The number of hours worked was 6.1 million
hours, an increase of 22 % compared to Q1
2021. During Q1 2022, the total recordable
injury rate (TRIR) decreased from 3.0 in Q1
2021 to 1.3 in Q1 2022.
12/33
Management’s review
Interim financial report First quarter 2022
Highlights
– We signed an agreement to farm down 50
% of Hornsea 2 and completed the 50 %
farm-down of Borkum Riffgrund 3.
– We took FID on South Fork in New York,
the US.
– We signed an agreement with Repsol to
jointly identify and develop floating off-
shore wind projects in Spain.
– We submitted seabed lease applications in
the Baltic Sea in Poland.
– We joined a floating wind joint venture off
the east coast of Scotland in April
Financial results Q1 2022
Power generation was almost flat year on
year at 4.5 TWh in Q1 2022. The farm-down of
50 % of Borssele 1 & 2 in May 2021 and higher
curtailments in Germany in Q1 2022 were close
to offset by higher wind speeds and ramp-up
at Hornsea 2.
Wind speeds amounted to a portfolio average
of 11.3 m/s, which was higher than in Q1 2021
(10.5 m/s) and the normal wind speeds ex-
pected in the first quarter (10.9 m/s). Availabil-
ity ended at 95 %, in line with last year.
Revenue increased by 49 % to DKK 19.8 billion.
Revenue from offshore wind farms in operation
decreased by 32 % to DKK 3.9 billion, mainly
driven by losses on ineffective hedges as a
consequence of later than expected commis-
sioning of wind turbines at Hornsea 2 com-
bined with very high power prices. The total
impact in Q1 2022 from having hedged too
large volumes was a loss of DKK 1.6 billion.
Revenue from power sales increased more
than fivefold to DKK 14.0 billion, due to the
higher power prices and the higher volumes
sold.
Revenue from construction agreements de-
creased by 66 %, mainly due to the divest-
ment of the offshore transmission assets at
Hornsea 1 in March 2021. In Q1 2022, revenue
mainly related to the construction of Greater
Changhua 1 for partners.
EBITDA increased by DKK 2.0 billion and
amounted to DKK 5.9 billion.
EBITDA from Sites, O&M, and PPAs amounted
to DKK 3.7 billion in Q1 2022. The 24 % de-
crease was primarily due to the previously
mentioned ineffective hedges. Furthermore,
higher TNUoS tariffs following the divestment
of the offshore transmission assets at Hornsea
1 in March 2021, generally higher BSUoS tariffs
across our UK sites, as well as the farm-down
of 50 % of Borssele 1 & 2 in May 2021 contribut-
ed to the decrease in earnings from sites. This
was partly offset by ramp-up of generation
from Hornsea 2 and higher wind speeds
(approx. DKK 0.5 billion compared to Q1 2021
and DKK 0.3 billion compared to a normal
wind year.)
EBITDA from partnerships amounted to DKK
2.6 billion and was mainly related to the gain
on the 50 % farm-down of Borkum Riffgrund 3
(new partnerships) of DKK 1.6 billion. Earnings
from existing partnerships amounted to DKK
1.0 billion, an increase of DKK 1.6 billion com-
pared to Q1 2021. Q1 2021 was negatively im-
pacted by a DKK 0.8 billion warranty provision
Financial results Q1 2022 Q1 2021 %
Business drivers
Decided (FID'ed) and installed capacity GW
11.1 9.9 12 %
Installed capacity
GW
7.6 7.6 0 %
Generation capacity
GW
4.2 4.4 (5 %)
Wind speed
m/s
11.3 10.5 8 %
Load factor
%
54 50 4 %p
Availability
%
95 95 0 %p
Power generation
GWh
4,502 4,549 (1 %)
Denmark
641 546 17 %
United Kingdom
2,862 2,525 13 %
Germany
565 611 (8 %)
The Netherlands
400 835 (52 %)
Other
34 32 6 %
Power sales GWh 9,166 6,885 33 %
Power price, LEBA UK
GBP/MWh
251 79 219 %
British pound
DKK/GBP
8.9 8.5 5 %
Financial performance
Revenue
DKKm
19,806 13,285 49 %
Sites, O&M and PPAs
3,863 5,685 (32 %)
Power sales
13,977 2,447 471 %
Construction agreements
1,739 5,101 (66 %)
Other
227 52 337 %
EBITDA
DKKm
5,919 3,946 50 %
Sites, O&M, and PPAs
3,698 4,886 (24 %)
Construction agreements and divestment gains 2,620 (573) n.a.
Other, incl. project development (399) (367) 8 %
Depreciation
DKKm
(1,521) (1,547) (2 %)
EBIT
DKKm
4,398 2,399 83 %
Cash flow from operating activities
DKKm
(2,206) 5,206 n.a.
Gross investments
DKKm
(5,548) (4,567) 21 %
Divestments
DKKm
1,945 (33) n.a.
Free cash flow DKKm
(5,809) 606 n.a.
Capital employed DKKm
83,827 91,883 (9 %)
O&M: Operation and maintenance agreements, PPAs: Power purchase agreements
Offshore
Management’s review
13/33
Interim financial report
First quarter 2022
towards our partners related to cable protec-
tion system issues at some of our offshore wind
farms. In Q1 2022, we have reversed DKK 0.5
billion of this provision, as we now expect low-
er costs to reinstate the integrity of the cables.
In addition, Q1 2022 saw a positive effect from
earnings from finalised projects and construc-
tion work for partners at Greater Changhua 1.
EBITDA from other activities, including project
development, amounted to DKK -0.4 billion, in
line with the same period last year, and was
mainly related to expensed project develop-
ment costs.
Cash flows from operating activities amounted
to DKK -2.2 billion, which was DKK 7.4 billion
lower than in Q1 2021. The decrease was driven
by a net cash outflow from ’work in progress’
vs a net cash inflow in Q1 2021 (see below). In
addition, the significantly higher power prices
led to large margin payments on unrealised
financial instruments (DKK 4.1 billion in Q1
2022). This was partly offset by lower initial
margin payment to clearing houses (DKK 0.7
billion).
In Q1 2022, we had a net cash outflow from
work in progress of DKK 0.9 billion, mainly from
construction work at Greater Changhua 1. In Q1
2021, we had a net cash inflow of DKK 4.6 bil-
lion, mainly from the divestment of the
Hornsea 1 offshore transmission assets, only
partly offset by construction work regarding
the offshore transmission assets at Hornsea 2.
Gross investments amounted to DKK 5.5 billion
and were mainly related to Greater Changhua
1 & 2a, Hornsea 2, and our US portfolio.
Divestments amounted to DKK 1.9 billion in Q1
2022 and were mainly related to the 50 %
farm-down of Borkum Riffgrund 3 with pro-
ceeds (NIBD impact) of DKK 1.9 billion.
Inside service operation
vessel Wind of Hope
14/33
Management’s review
Interim financial report First quarter 2022
Highlights
– We commissioned the 298 MW wind farm
Haystack in Nebraska, the US.
– We took FID on Sunflower Wind, a 201 MW
wind farm located in Kansas, US.
– We signed a landmark green fuels letter of
intent (LoI) with Maersk, where we will de-
velop an e-methanol facility on the US Gulf
Coast.
Financial results Q1 2022
Power generation from our operating onshore
assets almost doubled relative to Q1 2021 and
amounted to 3.2 TWh. The increase was due to
the commissioning of the Western Trail, Hay-
stack, and Lincoln Land wind farms and the
solar PV farms Permian Energy Center and
Muscle Shoals. Assets from the acquisition of
Brookfield Renewable Ireland in June last year
contributed 0.2 TWh. In Q1 2022, the wind
speeds across the portfolio were 7.7 m/s, which
was in line with both last year and a normal
wind year.
Revenue was up DKK 0.6 billion relative to Q1
2021 and amounted to DKK 0.7 billion. The
increase was mainly due to increased power
generation as a result of the newly commis-
sioned assets mentioned above and higher
prices in Europe.
EBITDA for Q1 2022 amounted to DKK 0.9 bil-
lion, DKK 0.6 billion higher than in the same
period last year. The increase was caused by
higher generation along with higher prices for
our European assets. In addition, the negative
impact from the unprecedented winter storm
in February 2021 in Texas was not repeated in
Q1 2022. This was partly offset by higher fixed
costs due to the expansion of the business and
project development.
Cash flows from operating activities increased
by DKK 0.3 billion compared to the same peri-
od last year. The increase was mainly due to
the higher EBITDA.
Gross investments amounted to DKK 1.2 billion
in Q1 2022 and related to the construction of
Old 300 Solar, Haystack, Helena Energy Cen-
ter, Kennoxhead 1, and Lisheen 3.
Financial results Q1 2022 Q1 2021 %
Business drivers
Decided (FID'ed) and installed capacity GW
4.7 4.0 18 %
Installed capacity GW
3.6 1.7 112 %
Wind speed, US
m/s
7.7 7.7 0 %
Load factor, wind, US
%
49 45 4 %p
Load factor, solar PV
%
21 - n.a.
Availability, wind, US
%
96 93 3 %p
Availability, solar PV
%
99 - n.a.
Power generation
GWh
3,203 1,647 94 %
US, wind
2,675 1,599 67 %
US, solar PV
289 48 502 %
Europe
239 - n.a.
US dollar
DKK/USD
6.6 6.2 7 %
Financial performance
Revenue
DKKm
690 120 475 %
EBITDA
DKKm
850 228 273 %
Sites
496 44 1,027 %
Production tax credits and tax attributes
568 283 101 %
Other, incl. project development
(214) (99) 116 %
Depreciation
DKKm
(358) (128) 180 %
EBIT
DKKm
492 100 392 %
Cash flow from operating activities
DKKm
(188) (446) (58 %)
Gross investments
DKKm
(1,221) (2,005) (39 %)
Divestments
DKKm
- 1 n.a.
Free cash flow
DKKm
(1,409) (2,450) (42 %)
Capital employed
DKKm
22,110 14,210 56 %
Onshore
15/33
Management’s review
Interim financial report First quarter 2022
Financial results Q1 2022
Heat generation decreased by 17 % in Q1 2022
due to warmer weather. Power generation
decreased by 5 % due to lower CHP generation
(warmer weather) partly offset by higher con-
densing power generation due to higher prices.
Gas and power sales decreased by 31 % and 26
%, respectively, due to the partial divestment
of our UK B2B activities in March 2021 and a
gradual phase-out of our remaining UK B2B
activities.
Revenue increased by 106 % compared to Q1
2021 and amounted to DKK 14.5 billion. The
increase was driven by significant increases in
both gas and power prices, which led to higher
revenue in our gas and power sales businesses
despite the lower volumes. The unhedged part
of power generation at our CHP plants was
also positively impacted by the higher Danish
power prices.
EBITDA amounted to DKK 2.5 billion compared
to DKK 0.6 billion in Q1 2021.
EBITDA from ‘CHP plants’ was DKK 1.1 billion
higher than in the same period last year, total-
ling DKK 1.8 billion in Q1 2022. The increase was
mainly due to higher power prices in Denmark,
as mentioned above, combined with higher
earnings from the sale of ancillary services.
EBITDA from ‘Gas Markets & Infrastructure’
increased by DKK 0.7 billion relative to the
same period last year, amounting to DKK 0.7
billion in Q1 2022. The increase was to a large
extent driven by temporary positive effects
from revaluation of our gas at storage during
Q1 2022 due to the high gas prices. In addition,
we were able to lock in gains from optimising
the offtake flexibility in some of our sourcing
contracts in north-western Europe. In contrast,
our decision to unwind gas hedges related to
the Gazprom Export contract to balance our
risk if gas supplies from Russia were terminat-
ed led to a net loss on the Gazprom Export
sourcing contract in the quarter.
Cash flow from operating activities amounted
to DKK 2.4 billion in Q1 2022. The decrease of
DKK 0.6 billion was driven by the significantly
higher and volatile gas prices, leading to high-
er margin payments tied up in clearing ac-
counts (DKK 2.3 billion in Q1 2022) and higher
fuel inventories due to increasing prices. This
was only partly offset by the higher EBITDA,
lower gas volumes at storage, and a positive
effect from net margin payments on unreal-
ised financial instruments (DKK 0.8 billion).
Financial results Q1 2022 Q1 2021 %
Business drivers
Degree days Number
1,141 1,325 (14 %)
Heat generation GWh
3,243 3,890 (17 %)
Power generation
GWh
2,138 2,259 (5 %)
Gas sales
GWh
12,993 18,945 (31 %)
Power sales
GWh
1,690 2,287 (26 %)
Gas price, TTF
EUR/MWh
95.6 18.5 418 %
Power price, DK
EUR/MWh
151.1 49.1 208 %
Green dark spread, DK
EUR/MWh
18.5 (4.2) n.a.
Green spark spread, DK
EUR/MWh
(72) (1.7) n.a.
Financial performance
Revenue DKKm
14,474 7,020 106 %
EBITDA
DKKm
2,514 622 304 %
CHP plants
1,823 676 170 %
Gas Markets & Infrastructure
725 19 n.a.
Other, incl. project development
(34) (73) (53 %)
Depreciation
DKKm
(189) (200) (6 %)
EBIT
DKKm
2,325 422 451 %
Cash flow from operating activities
DKKm
2,439 3,018 (19 %)
Gross investments
DKKm
(51) (59) (14 %)
Divestments
DKKm
(8) (29) (72 %)
Free cash flow
DKKm
2,380 2,930 (19 %)
Capital employed
DKKm
92 2,779 (97 %)
Bioenergy & Other
16/33
Management’s review
Interim financial report First quarter 2022
Financials, DKKm
Q1 2022 Q1 2021 2021
Income statement
Revenue
33,762 18,944 77,673
EBITDA
9,429 4,863 24,296
Offshore
5,919 3,946 18,021
Sites, O&M and PPAs
3,698 4,886 13,059
Construction agreements and divestment gains
2,620 (573) 7,535
Other, incl. project development
(399) (367) (2,573)
Onshore
850
228
1,349
Bioenergy & Other
2,514 622 4,747
Other activities
146 67 179
Depreciation, amortisation and impairment
(2,128) (1,930) (8,101)
Operating profit (loss) (EBIT)
7,301 2,933 16,195
Gain (loss) on divestment of enterprises
108 36 (742)
Net financial income and expenses
(848) (419) (2,166)
Profit (loss) before tax
6,561 2,547 13,277
Tax
(860) (949) (2,390)
Profit (loss) for the period
5,701 1,598 10,887
Balance
Assets 285,087 210,972 270,385
Equity
76,719 96,541 85,137
Shareholders in Ørsted A/S
55,704 75,835 64,072
Non-controlling interests
3,031 2,722 3,081
Hybrid capital
17,984 17,984 17,984
Interest-bearing net debt
30,026 13,190 24,280
Capital employed
106,745 109,731 109,416
Additions to property, plant, and equipment
5,127 6,469 43,941
Cash flow
Cash flow from operating activities
(37) 8,087 12,148
Gross investments
(6,832) (6,665) (39,307)
Divestments
1,927 (31) 21,519
Free cash flow
(4,942) 1,391 (5,640)
Financial ratios
Return on capital employed (ROCE)
1
, % 19.0 7.5 14.8
FFO/adjusted net debt
2
, % 25.0 59.4 31.3
Number of outstanding shares, end of period, '000
420,175 420,068 420,175
Share price, end of period, DKK
849 1,025 835
Market capitalisation, end of period, DKK billion
357 430 351
Earnings per share (EPS) (BP
1
), DKK 13.2 2.8 7.5
Dividend yield, %
- - 1.5
Business drivers Q1 2022 Q1 2021 2021
Offshore
Decided (FID'ed) and installed capacity
3
, GW 11.1
9.9 10.9
Installed capacity, GW
7.6 7.6 7.6
Generation capacity, GW
4.2 4.4 4.0
Wind speed, m/s
11.3
10.5 9.1
Load factor, %
54 50 39
Availability, %
95 95 94
Power generation, GWh
4,502 4,549 13,808
Power sales, GWh
9,166 6,885 25,020
Onshore
Decided (FID'ed) and installed capacity, GW
4.7 4.0 4.7
Installed capacity, GW
3.6 1.7 3.4
Wind speed, US, m/s
7.7 7.7 7.4
Load factor, wind, US, %
49 45 42
Load factor, solar PV, %
21 - 24
Availability, wind, US, %
96 93 96
Availability, solar PV, %
99 - 96
Power generation, GWh
3,203 1,647 8,352
Bioenergy & Other
Degree days, number
1,141 1,325 2,820
Heat generation, GWh
3,243 3,890 7,907
Power generation, GWh
2,138 2,259 6,890
Power sales, GWh
1,690 2,287 8,797
Gas sales, GWh
12,993 18,945 61,349
People and environment
Employees (FTE), end of period number 7,016 6,311 6,836
Total recordable injury rate (TRIR), YTD
1.3 3.0 3.0
Fatalities, number
- - -
Green share of energy generation, %
92 87 90
GHG intensity (scope 1 & 2), g CO
2
e/kWh 48 59 58
GHG emissions (scope 3), Mtonnes
3.7 5.3 18.2
GHG emission (scope 1 & 2), Mtonnes
0.6 0.7 2.1
Performance highlights
1)
EBIT (last 12 months)/average capital employed.
2)
FFO last 12 months. Net debt including 50 % of hybrid
capital and cash and securities not available for use
(with the exception of repo transactions). Numbers for Q1
2021 have been restated.
3)
Nameplate capacity from Q2 2021.
17/33
Management’s review
Interim financial report First quarter 2022
Quarterly overview
Financials, DKKm
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Income statement (BP
1
comparables)
Revenue 33,762 30,666 14,510 13,553 18,944 15,559 10,041 11,625
EBITDA 9,429 8,253 2,984 8,196 4,863 5,003 3,360 2,956
Offshore 5,919 5,244 1,304 7,527 3,946 4,128 2,629 2,361
Sites, O&M and PPAs 3,698 3,983 1,822 2,368 4,886 4,950 3,012 2,578
Construction agreements and
divestment gains
2,620 2,469 (9) 5,648 (573) (149) 247 396
Other incl. project development (399) (1,208) (509) (489) (367) (673) (630) (613)
Onshore 850 530 413 178 228 324 308 312
Bioenergy & Other 2,514 2,416 1,206 503 622 643 375 185
Other activities 146 63 61 (12) 67 (92) 48 98
Operating profit (loss) (EBIT) 7,301 5,980 1,045 6,237 2,933 3,091 1,265 1,129
Profit (loss) for the period 5,701 3,258 487 5,544 1,598 2,189 12,034 (825)
Income statement (IFRS comparables)
Revenue 33,762 30,666 14,510 13,553 18,944 13,195 8,762 9,962
EBITDA 9,429 8,253 2,984 8,196 4,863 3,102 2,455 1,592
Depreciation, amortisation and
impairment losses
(2,128) (2,273) (1,939) (1,959) (1,930) (1,912) (2,095) (1,827)
Operating profit (loss) (EBIT) 7,301 5,980 1,045 6,237 2,933 1,190 360 (235)
Gain (loss) on divestment of enterprises 108 (684) (22) (72) 36 (291) 11,139 (3)
Net financial income and expenses (848) (930) (351) (466) (419) (456) (282) (1,010)
Profit (loss) before tax 6,561 4,361 671 5,698 2,547 442 11,219 (1,245)
Tax (860) (1,103) (184) (154) (949) 258 92 (625)
Profit (loss) for the period 5,701 3,258 487 5,544 1,598 715 11,329 (1,886)
Balance sheet
Assets 285,087 270,385 261,892 223,791 210,972 196,719 194,567 193,124
Equity 76,719 85,137 79,150 96,910 96,541 97,329 96,472 85,930
Shareholders in Ørsted A/S 55,704 64,072 58,129 75,842 75,835 81,376 80,450 69,789
Non-controlling interests 3,031 3,081 3,037 3,084 2,722 2,721 2,790 2,909
Hybrid capital 17,984 17,984 17,984 17,984 17,984 13,232 13,232 13,232
Interest-bearing net debt 30,026 24,280 21,211 12,067 13,190 12,343 8,216 22,272
Capital employed 106,745 109,416 100,361 108,977 109,731 109,672 104,688 108,203
Additions to property, plant, equipment 5,127 17,041 11,477 8,954 6,469 8,121 5,477 10,011
Cash flow
Cash flow from operating activities (37) 668 246 3,147 8,087 6,756 1,941 8,197
Gross investments (6,832) (11,752) (8,757) (12,133) (6,665) (8,639) (9,263) (3,757)
Divestments 1,927 10,952 7 10,591 (31) (1,519) 20,506 45
Free cash flow (4,942) (132) (8,504) 1,605 1,391 (3,402) 13,184 4,485
Financial ratios
Return on capital employed (ROCE)
2
, % 19.0 14.8 12.9 12.5 7.5 9.7 9.4 10.8
FFO/adjusted net debt
3
, % 25.0 31.3 42.3 62.9 59.4 65.0 35.6 43.4
Number of outstanding shares, end of period, '000 420,175 420,175 420,175 420,175 420,068 420,068 420,066 420,066
Share price, end of period, DKK
849 835 849 880 1,025 1,244 875 765
Market capitalisation, end of period, DKK billion 357 351 357 370 430 522 368 321
Earnings per share (EPS) (BP
1
), DKK 13.2 7.5 1.1 12.9 2.8 4.9 28.6 (2.7)
Business drivers
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Offshore
Decided (FID'ed) and installed capacity
4
, GW 10.9 9.8 9.8 9.9 9.9 9.9 9.9
Installed capacity, GW
7.6 7.6 7.6 7.6 7.6 6.8 6.8
Generation capacity, GW
4.0 4.0 4.0 4.4 4.4 4.1 3.8
Wind speed, m/s
10.6 7.6 7.8 10.5 10.6 8.6 8.4
Load factor, %
53 27 29 50 53 35 32
Availability, %
95 93 93 95 94 94 95
Power generation, GWh
4,452 2,286 2,521 4,549 4,912 3,164 2,580
Power sales, GWh
8,791 4,803 4,541 6,885 8,561 6,282 5,519
Onshore
Decided (FID'ed) and installed capacity, GW
4.7 4.7 4.7 4.0 3.4 2.7 2.1
Installed capacity, GW
3.4 3.0 2.4 1.7 1.7 1.7 1.6
Wind speed, US, m/s
7.9 6.4 7.3 7.7 8.0 6.7 8.0
Load factor, wind, US, %
47 33 45 45 50 36 49
Availability, wind, US, %
96 98 97 93 95 97 96
Power generation, GWh
2,818 1,904 1,983 1,647 1,817 1,262 1,516
Bioenergy & Other
Degree days, number
927 81 487 1,325 825 106 436
Heat generation, GWh
2,467 402 1,148 3,890 2,230 321 977
Power generation, GWh
2,096 1,028 1,507 2,259 1,291 692 811
Power sales, GWh
2,072 2,271 2,167 2,287 2,574 2,452 2,991
Gas sales, GWh
13,744 13,580 15,079 18,945 20,441 23,158 20,063
People and environment
Employees (FTE) end of period, number
6,836 6,672 6,472 6,311 6,179 6,120 6,731
Total recordable injury rate (TRIR), YTD
3.0 3.0 3.1 3.0 3.6 3.8 3.7
Fatalities, number
- - - - - - -
Green share of energy generation, %
93 89 93 87 93 90 86
GHG intensity (scope 1 & 2), g CO
2
e/kWh
45 91 51 59 34 83 84
GHG emissions (scope 3), Mtonnes
3.9 4.4 4.6 5.3 5.9 6.3 5.5
Q1
2022
11.1
7.6
4.2
11.3
54
95
4,502
9,166
4.7
3.6
7.7
49
96
3,203
1,141
3,243
2,138
1,690
12,993
7,016
1.3
-
92
48
3.7
Load factor, solar PV, %
21 19 27 29 - - - -
Availability, solar PV, %
99 99 98 90 - - - -
GHG emissions (scope 1 & 2), Mtonnes
0.6 0.5 0.5 0.4 0.7 0.4 0.4 0.5
Income statement
The income statement (BP
1
comparables)
shows business performance numbers for
2020 to form a better like-for-like compari-
son, in line with the comparison numbers
used throughout the management’s review.
1)
Business performance.
2)
EBIT (last 12 months)/average capital employed.
3)
FFO last 12 months. Net debt including 50 % of hybrid capital and
cash and securities not available for use (with the exception of repo
transactions). Numbers for 2020 and 2021 have been restated.
4)
Nameplate capacity from Q2 2021..
18/33
Management’s review
Interim financial report First quarter 2022
Consolidated
financial statements
First quarter 2022
1 January – 31 March
19/33
Consolidated financial statements
Interim financial report First quarter 2022
1 January – 31 March
1 January – 31 March
Value adjustments for the period in the first three
months of 2022 are mainly due to losses on power
hedges as a consequence of the increase in power
prices and, to a lesser extent, losses on currency, gas,
and inflation hedges.
Consolidated statements of income
Statement of comprehensive income, DKKm Q1 2022 Q1 2021
Profit (loss) for the period 5,701 1,598
Other comprehensive income:
Cash flow hedging:
Value adjustments for the period (22,961 ) (5,856 )
Value adjustments transferred to income statement 5,692 2,018
Value adjustments transferred to balance sheet (32 ) (44 )
Exchange rate adjustments:
Exchange rate adjustments relating to net investments in foreign enterprises (52 ) 3,774
Value adjustment of net investment hedges (41 ) (2,136 )
Tax:
Tax on hedging instruments 3,342 624
Tax on exchange rate adjustments 112 (145 )
Other:
Share of other comprehensive income of associated companies, after tax 9 9
Other comprehensive income (13,931 ) (1,756 )
Total comprehensive income (8,230 ) (158 )
Comprehensive income for the period is attributable to:
Shareholders in Ørsted A/S (8,373 ) (717 )
Interest payments and costs, hybrid capital owners of Ørsted A/S 145 415
Non-controlling interests (2 ) 144
Total comprehensive income (8,230 ) (158 )
Note Income statement, DKKm Q1 2022 Q1 2021
3 Revenue 33,762 18,944
Cost of sales (24,547 ) (12,911 )
Other external expenses (1,175 ) (931 )
Employee costs (1,166 ) (1,039 )
Share of profit (loss) in associates and joint ventures 55 38
4 Other operating income 2,576 823
4 Other operating expenses (76 ) (61 )
Operating profit (loss) before depreciation,
amortisation, and impairment losses (EBITDA) 9,429 4,863
Amortisation, depreciation, and impairment losses on
intangible assets, and property, plant, and equipment (2,128 ) (1,930 )
Operating profit (loss) (EBIT)
Gain (loss) on divestment of enterprises 108 36
Share of profit (loss) in associates and joint ventures - (3 )
5 Financial income 1,063 485
5 Financial expenses (1,911 ) (904 )
Profit (loss) before tax
8 Tax on profit (loss) for the period (860 ) (949 )
Profit (loss) for the period
Profit (loss) for the period is attributable to:
Shareholders in Ørsted A/S 5,556 1,174
Interests and costs, hybrid capital owners of Ørsted A/S 145 415
Non-controlling interests - 9
Profit (loss) per share
1
, DKK: 13.2 2.8
1
Diluted profit (loss) per share corresponds to profit (loss) per share, as the dilutive effect of the share incentive
programme is less than 0.1 % of the share capital.
20/33
Consolidated financial statements
Interim financial report First quarter 2022
Assets and liabilities classified as held for sale
At 31 March 2022 and at 31 March 2021, assets and
related liabilities held for sale comprised our oil
pipe system in Denmark, which is an activity in
Bioenergy & Other.
Consolidated balance sheet
Note Assets, DKKm
31 March
2022
31 December
2021
31 March
2021
Intangible assets 1,828 1,543 787
Land and buildings 7,963 8,066 5,930
Production assets 100,998 95,618 86,730
Fixtures and fittings, tools, and equipment 636 604 528
Property, plant, and equipment under construction 55,302 57,108 37,033
Property, plant, and equipment 164,899 161,396 130,221
Investments in associates and joint ventures 662 572 611
Other securities and equity investments 224 221 212
10 Derivatives 3,636 2,716 3,026
Deferred tax 14,730 13,281 7,031
Other receivables 2,670 2,492 2,049
Other non-current assets 21,922 19,282 12,929
Non-current assets 188,649 182,221 143,937
Inventories 16,430 15,998 11,579
10 Derivatives 26,082 14,078 3,312
Contract assets 2 2 2
Trade receivables 8,724 9,565 5,936
Other receivables 17,335 14,815 4,876
Income tax 1,336 1,200 1,815
10 Securities 20,416 21,228 30,154
Cash 4,865 9,943 7,830
Current assets 95,190 86,829 65,504
Assets classified as held for sale 1,248 1,335 1,531
Assets 285,087 270,385 210,972
Note Equity and liabilities, DKKm
31 March
2022
31 December
2021
31 March
2021
Share capital 4,204 4,204 4,204
7 Reserves (38,716 ) (24,778 ) (3,856 )
Retained earnings 84,961 79,391 75,487
Proposed dividends 5,255 5,255 -
Equity attributable to shareholders in Ørsted A/S 55,704 64,072 75,835
Hybrid capital 17,984 17,984 17,984
Non-controlling interests 3,031 3,081 2,722
Equity 76,719 85,137 96,541
Deferred tax 3,661 5,616 2,217
Provisions 14,835 15,124 13,662
Lease liabilities 6,706 6,812 4,798
11 Bond and bank debt 36,305 31,502 35,421
10 Derivatives 21,125 17,464 5,416
Contract liabilities 3,190 3,230 3,355
Tax equity liabilities 13,376 13,358 7,060
Other payables 4,463 4,682 743
Non-current liabilities 103,661 97,788 72,672
Provisions 731 764 1,291
Lease liabilities 740 720 633
11 Bond and bank debt 14,077 19,493 10,064
10 Derivatives 54,795 32,325 5,190
Contract liabilities 1,460 2,440 505
Trade payables 19,517 20,231 10,328
Tax equity liabilities 1,197 1,206 1,250
Other payables 5,660 4,768 4,803
Income tax 5,951 5,021 6,804
Current liabilities 104,128 86,968 40,868
Liabilities 207,789 184,756 113,540
Liabilities relating to assets classified
as held for sale 579 492 891
Equity and liabilities 285,087 270,385 210,972
21/33
Consolidated financial statements
Interim financial report First quarter 2022
* See note 7 ‘Reserves’ for more information about reserves.
Consolidated statement of shareholders equity
‘Cash-flow hedging’ is impacted by large losses on
hedges, mainly power hedges, due to the increase
in power prices and, to a lesser extent, by losses on
currency, gas, and inflation hedges.
2022 2021
DKKm
Share
capital Reserves*
Retained
earnings
Proposed
dividends
Share-
holders in
Ørsted A/S
Hybrid
capital
Non-con-
trolling
interests
Total
Group
Share
capital Reserves*
Retained
earnings
Proposed
dividends
Share-
holders in
Ørsted A/S
Hybrid
capital
Non-con-
trolling
interests
Total
Group
Equity at 1 January 4,204 (24,778 ) 79,391 5,255 64,072 17,984 3,081 85,137 4,204 (1,956 ) 74,294 4,834 81,376 13,232 2,721 97,329
Comprehensive income
for the period:
Profit (loss) for the period - - 5,556 - 5,556 145 - 5,701 - - 1,174 - 1,174 415 9 1,598
Other comprehensive income:
Cash-flow hedging - (17,301 ) - - (17,301 ) - - (17,301 ) - (3,882 ) - - (3,882 ) - - (3,882 )
Exchange rate adjustments - (91 ) - - (91 ) - (2 ) (93 ) - 1,503 - - 1,503 - 135 1,638
Tax on other comprehensive income - 3,454 - - 3,454 - - 3,454 - 479 - - 479 - - 479
Share of other comprehensive income
of associated companies, after tax - - 9 - 9 - - 9 - - 9 - 9 - - 9
Total comprehensive income - (13,938 ) 5,565 - (8,373 ) 145 (2 ) (8,230 ) - (1,900 ) 1,183 - (717 ) 415 144 (158 )
Coupon payments, hybrid capital - - - - - (150 ) - (150 ) - - - - - (106 ) - (106 )
Tax, hybrid capital - - - - - 5 - 5 - - - - - 87 - 87
Additions, hybrid capital - - - - - - - - - - - - - 7,327 - 7,327
Disposals, hybrid capital - - - - - - - - - - - - - (2,971 ) - (2,971 )
Dividends paid - - - - - - (131 ) (131 ) - - 4 (4,834 ) (4,830 ) - (145 ) (4,975 )
Additions, non-controlling interests - - - - - - 83 83 - - - - - - - -
Other changes - - 5 - 5 - - 5 - - 6 - 6 - 2 8
Equity at 31 March 4,204 (38,716 ) 84,961 5,255 55,704 17,984 3,031 76,719 4,204 (3,856 ) 75,487 - 75,835 17,984 2,722 96,541
22/33
Consolidated financial statements
Interim financial report First quarter 2022
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
31 March 2022 includes ’Cash, not available
for use’ amounting to DKK 316 million and ’Bank
overdrafts that are part of the ongoing cash
management’ amounting to DKK 1 million.
Consolidated statement of cash flows
Note Statement of cash flows, DKKm Q1 2022 Q1 2021
Operating profit (loss) before depreciation, amortisation, and
impairment losses (EBITDA) 9,429 4,863
Reversal of gain (loss) on divestment of assets
(1,863 ) (220 )
Change in derivatives (3,964 ) (811 )
Change in provisions
(765 ) 630
Other items
(65 ) (61 )
Change in inventories (498 ) 3,716
Change in contract assets and liabilities (976 ) (268 )
Change in trade receivables 725 954
Change in other receivables (2,361 ) (327 )
Change in trade payables 1,093 763
Change in tax equity liabilities (496 ) (247 )
Change in other payables 152 222
Interest received and similar items 1,250 323
Interest paid and similar items (1,467 ) (577 )
Income tax paid (231 ) (873 )
Cash flows from operating activities (37 ) 8,087
Purchase of intangible assets, and property, plant, and equipment (6,801 ) (6,648 )
Sale of intangible assets, and property, plant, and equipment 1,862 (25 )
7 Acquisition of enterprises
Divestment of enterprises
(19 ) (31 )
Purchase of other equity investments
Purchase of securities
(813 ) (6,040 )
Sale/maturation of securities
Change in other non-current assets
(2 ) 23
Transactions with associates and joint ventures
(30 ) -
Cash flows from investing activities (4,810 ) (11,753 )
Note Statement of cash flows, DKKm Q1 2022 Q1 2021
Proceeds from raising of loans 6,559 7,817
Instalments on loans (5,895 ) 384
Instalments on leases (173 ) (73 )
Coupon payments on hybrid capital (150 ) (106 )
Repurchase of hybrid capital - (2,971 )
Proceeds from issuance of hybrid capital - 7,327
Dividends paid to shareholders in Ørsted A/S - (4,830 )
Transactions with non-controlling interests (43 ) (141 )
Net proceeds from tax equity partners (51 ) 120
Collateral posted in relation to trading of derivatives (11,140 ) (4,859 )
Collateral released in relation to trading of derivatives 11,659 3,090
Cash flows from financing activities 766 5,758
Total net change in cash and cash equivalents for the period (4,081 ) 2,092
Cash and cash equivalents at the beginning of the period 8,614 5,210
Total net change in cash and cash equivalents (4,081 ) 2,092
Exchange rate adjustments of cash and cash equivalents 15 176
Cash and cash equivalents at 31 March 4,548 7,478
23/33
Consolidated financial statements
Interim financial report First quarter 2022
The interim financial report for the first three
months of 2022 follows the same accounting
policies as the annual report for 2021.
Definitions of alternative performance
measures can be found on page 84 of the
annual report for 2021.
This interim financial report contains selected
accounting policies and should therefore be
read in conjunction with the annual report for
2021.
Implementation of new or changed
accounting standards and interpretations
IASB has issued amended standards which
apply for the first time in 2022. None of these
amended standards and interpretations are
expected to have any significant impact on our
financial statements.
This section provides a description of the
accounting policies applied in our consolidated
financial statements as well as the impact of
new and amended accounting standards and
interpretations, if any.
Accounting policies
Ørsted is a listed public company, headquar-
tered in Denmark.
This interim financial report for the first three
months of 2022 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.
1. Basis of reporting
Service technicians
at Hornsea 2 off
the Yorkshire
coast, the UK.
24/33
Consolidated financial statements
Interim financial report First quarter 2022
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 1,968 million, which primarily relates to our
Shared Functions services as well as our B2B
business activities.
2. Segment information
2022
Income statement, DKKm Offshore Onshore
Bioenergy
& Other
Reportable
segments
Other
activities/
eliminations Total
External revenue 17,345 690 15,718 33,753 9 33,762
Intra-group revenue 2,461 - (1,244) 1,217 (1,217)
1
-
Revenue 19,806 690 14,474 34,970 (1,208) 33,762
Cost of sales (14,292) (10) (11,451) (25,753) 1,206 (24,547)
Employee costs and other external expenses (1,563) (400) (526) (2,489) 148 (2,341)
Gain (loss) on disposal of non-current assets 1,863 - - 1,863 - 1,863
Additional other operating income and expenses 51 569 17 637 - 637
Share of profit (loss) in associates and joint ventures 54 1 - 55 - 55
EBITDA 5,919 850 2,514 9,283 146 9,429
Depreciation and amortisation
(1,521) (358) (189)
(2,068)
(60)
(2,128)
Impairment losses
- - -
-
-
-
Operating profit (loss) (EBIT) 4,398 492 2,325 7,215 86 7,301
Key ratios
Intangible assets, and property, plant, and equipment 110,396 46,525 8,419 165,340 1,387 166,727
Assets classified as held for sale, net - - 684 684 - 684
Equity investments and non-current receivables 548 46 130 724 199 923
Net working capital, capital expenditures (6,641) (432) (28) (7,101) - (7,101)
Net working capital, work in progress 6,821 - - 6,821 - 6,821
Net working capital, tax equity - (13,262) - (13,262) - (13,262)
Net working capital, other items 10,212 369 908 11,489 476 11,965
Derivatives, net (33,570) (5,911) (7,744) (47,225) 1,023 (46,202)
Decommissioning obligations (6,247) (1,387) (1,405) (9,039) - (9,039)
Other provisions (2,550) (11) (1,778) (4,339) (2,188) (6,527)
Tax, net 8,859 (3,812) 903 5,950 504 6,454
Other receivables and other payables, net (4,001) (15) 3 (4,013) (685) (4,698)
Capital employed at 31 March 83,827 22,110 92 106,029 716 106,745
Return on capital employed (ROCE), % - - - - - 19.0
Cash flow from operating activities (2,206) (188) 2,439 45 (82) (37)
Gross investments (5,548) (1,221) (51) (6,820) (12) (6,832)
Divestments 1,945 - (8) 1,937 (10) 1,927
Free cash flow (FCF) (5,809) (1,409) 2,380 (4,838) (104) (4,942)
25/33
Consolidated financial statements
Interim financial report First quarter 2022
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 1,932 million, which primarily relates to our
Shared Functions services as well as our B2B
business activities.
2021
Income statement, DKKm Offshore Onshore
Bioenergy
& Other
Reportable
segments
Other
activities/
eliminations Total
External revenue 11,719 134 7,283 19,136 (192) 18,944
Intra-group revenue 1,566 (14) (263) 1,289 (1,289)
1
-
Revenue 13,285 120 7,020 20,425 (1,481) 18,944
Cost of sales (8,495) (5) (5,882) (14,382) 1,471 (12,911)
Employee costs and other external expenses (1,360) (173) (514) (2,047) 77 (1,970)
Gain (loss) on disposal of non-current assets 220 - - 220 - 220
Additional other operating income and expenses 258 286 (2) 542 - 542
Share of profit (loss) in associates and joint ventures 38 - - 38 - 38
EBITDA 3,946 228 622 4,796 67 4,863
Depreciation and amortisation
(1,547) (128) (200)
(1,875)
(55)
(1,930)
Impairment losses
- - -
-
-
-
Operating profit (loss) (EBIT) 2,399 100 422 2,921 12 2,933
Key ratios
Intangible assets, and property, plant, and equipment 94,613 26,710 8,239 129,562 1,446 131,008
Assets classified as held for sale, net - - 657 657 - 657
Equity investments and non-current receivables 507 1 176 684 154 838
Net working capital, capital expenditures (3,010) (672) (9) (3,691) - (3,691)
Net working capital, work in progress 5,648 - - 5,648 - 5,648
Net working capital, tax equity - (7,403) - (7,403) - (7,403)
Net working capital, other items 4,801 204 (2,956) 2,049 (127) 1,922
Derivatives, net (3,712) (1,539) (710) (5,961) 1,693 (4,268)
Decommissioning obligations (5,301) (818) (1,273) (7,392) - (7,392)
Other provisions (4,622) (119) (2,052) (6,793) (768) (7,561)
Tax, net 1,999 (2,154) 702 547 (722) (175)
Other receivables and other payables, net 960 - 5 965 (817) 148
Capital employed at 31 March 91,883 14,210 2,779 108,872 859 109,731
Return on capital employed (ROCE), % - - - - - 7.5
Cash flow from operating activities 5,206 (446) 3,018 7,778 309 8,087
Gross investments (4,567) (2,005) (59) (6,631) (34) (6,665)
Divestments (33) 1 (29) (61) 30 (31)
Free cash flow (FCF) 606 (2,450) 2,930 1,086 305 1,391
26/33
Consolidated financial statements
Interim financial report First quarter 2022
Revenue amounted to DKK 33,762 million.
The increase of 78 % relative to the first three
months of 2021 was primarily due to the
significantly higher gas and power prices
across all markets and more assets in
operation.
Revenue from construction agreements
decreased by 66 %, mainly due to the divest-
ment of the offshore transmission asset at
Hornsea 1 in March 2021. In Q1 2022, revenue
mainly related to the construction of Greater
Changhua 1 for partners.
3. Revenue
Revenue, DKKm Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
2022
total Offshore Onshore
Bioenergy &
Other
Other
activities/
eliminations
2021
total
Sale of gas - - 7,333 31 7,364 - - 2,968 (93) 2,875
Generation of power 2,050 553 2,956 - 5,559 2,169 245 1,134 - 3,548
Sale of power 12,950 - 1,747 (1,235) 13,462 2,354 - 1,417 (1,349) 2,422
Revenue from construction of offshore wind farms and transmission
assets
1,739 - - - 1,739 5,101 - - - 5,101
Generation and sale of heat and steam - - 1,206 - 1,206 - - 1,193 - 1,193
Distribution and transmission - - 67 (2) 65 - - 81 (1) 80
Other revenue 721 12 75 (2) 806 570 - 37 (7) 600
Total revenue from customers 17,460 565 13,384 (1,208) 30,201 10,194 245 6,830 (1,450) 15,819
Government grants 1,319 161 203 - 1,683 2,998 2 227 - 3,227
Miscellaneous revenue 1,027 (36) 887 - 1,878 93 (127) (37) (31) (102)
Total revenue, IFRS 19,806 690 14,474 (1,208) 33,762 13,285 120 7,020 (1,481) 18,944
Timing of revenue recognition from customers
At a point in time 14,817 565 7,684 (1,208) 21,858 9,789 245 2,067 (1,450) 10,651
Over time 2,643 - 5,700 - 8,343 405 - 4,763 - 5,168
Total revenue from customers 17,460 565 13,384 (1,208) 30,201 10,194 245 6,830 (1,450) 15,819
27/33
Consolidated financial statements
Interim financial report First quarter 2022
4. Other operating
income and expenses
Gain on divestment of assets primarily relates
to the 50 % farm-down of Borkum Riffgrund 3
in February, resulting in a gain from new part-
nerships of DKK 1.6 billion.
In Q1 2021, gain on divestment of assets
primarily concerned adjustments to finalised
offshore projects.
Other compensation is primarily compensa-
tions regarding outages and curtailments
from TenneT, the German grid operator.
The increase in ’US tax credits and tax equity
income’ was mainly due to commissioning of
new onshore wind farms in 2021 which have
had full impact in 2022 as well as commission-
ing of new onshore wind and solar farms in
2022.
5. Financial income
and expenses
The table shows net financial income and expenses
corresponding to our internal control.
Exchange rate adjustments and hedging contracts
entered into to hedge currency risks are presented
net under the item ’Exchange rate adjustments, net’.
‘Value adjustments of derivatives, net’ and ‘Value
adjustments of securities, net’ are both impacted by
the increase in interest rates in the first three months
of 2022.
Other operating income, DKKm Q1 2022 Q1 2021
Gain on divestment of assets 1,892 255
Other compensation 50 163
US tax credits and tax attributes 568 283
Miscellaneous operating income 66 122
Total other operating income 2,576 823
Other operating expenses, DKKm Q1 2022 Q1 2021
Loss on divestment of assets 29 35
Miscellaneous operating expenses 47 26
Total other operating expenses 76 61
Net financial income and expenses, DKKm Q1 2022 Q1 2021
Interest expenses, net (204) (270)
Interest expenses, leasing (45) (50)
Interest element of provisions, etc. (103) (100)
Tax equity partner's contractual return (237) (148)
Value adjustments of derivatives, net 396 91
Exchange rate adjustments, net (22) 231
Value adjustments of securities, net (628) (263)
Other financial income and expenses (5) 90
Net financial income and expenses (848) (419)
28/33
Consolidated financial statements
Interim financial report First quarter 2022
7. Reserves
6. Gross and net
investments
Technicians at our
West coast hub,
Barrow-in-Furness,
the UK.
’Value adjustments of hedging reserve’ in the first
three months of 2022 are mainly a result of losses
on power hedges due to the increase in power
prices and, to a lesser extent, losses on currency,
gas, and inflation hedges.
Reserves 2021, DKKm
Foreign
currency
translation
reserve
Hedging
reserve
Total
reserves
Reserves at 1 January (3,829) 1,873 (1,956)
Exchange rate adjustments 3,639 - 3,639
Value adjustments of hedging reserve - (7,992) (7,992)
Value adjustments transferred to:
Revenue - 2,016 2,016
Financial income and expenses - 2 2
Profit (loss) from discontinued operations - (44) (44)
Tax:
Tax on hedging and currency adjustments (615) 1,094 479
Movement in comprehensive income for the period 3,024 (4,924) (1,900)
Total reserves at 31 March (805) (3,051) (3,856)
Gross and net investments, DKKm Q1 2022 Q1 2021
Cash flows from investing activities (4,810) (11,753)
Purchase and sale of securities, reversed (179) 5,057
Sale of non-current assets, reversed (1,843) 31
Gross investments (6,832) (6,665)
Transactions with non-controlling interests in connection with divestments 84 -
Sale of non-current assets 1,843 (31)
Divestments 1,927 (31)
Net investments (4,905) (6,696)
Reserves 2022, DKKm
Foreign
currency
translation
reserve
Hedging
reserve
Total
reserves
Reserves at 1 January 1,475 (26,253) (24,778)
Exchange rate adjustments (50) - (50)
Value adjustments of hedging reserve - (23,002) (23,002)
Value adjustments transferred to:
Revenue - 5,736 5,736
Financial income and expenses - (44) (44)
Property, plant, and equipment - (32) (32)
Tax:
Tax on hedging and currency adjustments 103 3,351 3,454
Movement in comprehensive income for the period 53 (13,991) (13,938)
Total reserves at 31 March 1,528 (40,244) (38,716)
29/33
Consolidated financial statements
Interim financial report First quarter 2022
Tax on profit (loss) for the period
Tax on profit (loss) was DKK 860 million in
the first three months of 2022 compared to
DKK 949 million in the first three months of
2021. The effective tax rate for the first three
months of 2022 was 13 %.
The effective tax rate was affected by the
farm-down of Borkum Riffgrund 3 and the
continued recognition of deferred tax
liabilities in the US related to tax equity
partnerships for offshore wind farms in our
north-east cluster and for Ocean Wind 1. The
deferred tax liabilities for the offshore wind
farms will increase until COD.
Effective tax rate
The effective tax rate for the first three months of
2022 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.
Accounting policies
Effective tax rate
The estimated average annual tax rate is
separated into four categories: 1) ordinary business
activities, 2) gain (loss) on divestments, 3) impacts
from tax equity partnerships in the US, and 4) other
adjustments which are not related to current years
profit (loss).
8. Tax on profit (loss) for the period
Q1 2022 Q1 2021
Tax for the period, DKK
Profit (loss)
before tax Tax Tax in %
Profit (loss)
before tax Tax Tax in %
New tax equity, deferred tax liability (163) n.a. (410) n.a.
Gain (loss) on divestment of enterprises 1,463 - n.a. - - n.a.
Other adjustments 357 n.a. (16) n.a.
Remaining Ørsted business 5,098 (1,054) 21% 2,547 (523) 21%
Effective tax for the period 6,561 (860) 13% 2,547 (949) 37%
Willow Creek,
Butte County,
South Dokota,
the US.
30/33
Consolidated financial statements
Interim financial report First quarter 2022
For USD and NTD, we manage our
risk to a natural time spread bet-
ween front-end capital expenditures
and long-term revenue. In the five-
year horizon, we are therefore seeing
that our hedges increase our net
exposure to USD, but in the longer
horizon, our hedges reduce the USD
risk.
We do not deem EUR to constitute a
risk, as we expect Denmark to
maintain its fixed exchange-rate
policy.
Our power exposure before and
after hedging have increased
significantly in Q1 2022 due to the
increase in power prices.
Our energy exposures have been
reduced significantly due to hedging.
Gas purchase contract with
Gazprom Export
We have a long-term take-or-pay
gas purchase contract with
Gazprom Export, where the price is
fixed a few months in advance of the
delivery of gas. This price exposure is
normally hedged by locking in the
sales price of gas when the purchase
prise is known. In Q1 2022, we have
adjusted our hedging strategy on an
ongoing basis to mitigate the
financial risks in a scenario where we
would not receive the expected gas
volumes. Consequently, our gas
exposure after hedging has
increased.
Energy exposure 1 April 2022 - 31 March 2027, DKKbnCurrency exposure 1 April 2022 - 31 March 2027, DKKbn
9. Market risks
The table shows the time of the
transfer of the market value of
hedging contracts to EBITDA.
Due to the increase in power prices,
we have seen large losses on power
hedges. The losses will be countered
by higher sales prices on our future
power production.
Expected value for recognition in EBITDA, DKKbn
Market risk management
Our most significant market risks relate to:
energy prices
foreign exchange rates
interest and inflation.
We manage market risks to protect Ørsted
against market price volatility and to ensure
stable and robust financial ratios that support
our growth strategy and protect the value of
our assets.
Minimum hedging levels are determined by the
Board of Directors. In the first two years, we
are almost fully hedged. The degree of
hedging declines in subsequent years. For more
details on our market risks, please see notes
6.1-6.4 in the annual report for 2021.
31/33
Consolidated financial statements
Interim financial report First quarter 2022
Market values are determined by the
Risk Management function, which reports to
the CFO. The development in market values is
monitored on a continuing basis and reported
to the Executive Committee.
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.
The table shows the move-
ments 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 avai-
lable 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.
Assets Liabilities
Fair value hierarchy
DKKm Inventories Securities Derivatives Derivatives
2022
Quoted prices 1,000 - 11,169 15,010
Observable input - 20,416 16,957 46,913
Non-observable input - - 1,592 13,997
Total 31 March 2022 1,000 20,416 29,718 75,920
2021
Quoted prices 315 - 1,120 1,733
Observable input - 30,154 5,102 8,365
Non-observable input - - 116 508
Total 31 March 2021 315 30,154 6,338 10,606
Derivatives valued on the basis of
non-observable inputs, DKKm 2022 2021
Market value at 1 January (7,448) (82)
Value adjustments through profit or loss (188) (165)
Value adjustments through other
comprehensive income (4,915) (119)
Sales/redemptions 283 2
Purchases/issues (181) (15)
Transferred from quoted prices and
observable input 44 -
Transferred to observable input - (13)
Market value at 31 March before
deferred gain (loss) (12,405) (392)
Non-observable input per commodity
price input, DKKm 2022 2021
US power prices (7,360) -
German power prices (3,898) (348)
Other power prices (810) (49)
Gas prices (337) 5
Total (12,405) (392)
The table shows the signifi-
cant unobservable inputs
used in the fair value mea-
surements categorised as
level 3, together with a
sensitivity analysis as at
31 March 2022. If intermit-
tency-adjusted power prices
in Germany as of 31 March
2022 increased by 25 %, the
market value would de-
crease by DKK 1,999 million.
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) 633 527 782 (1,999) 1,999
Ireland (2023-2042) 735 563 1,937 (199) 199
US ERCOT (2022-2030) 173 119 905 (3,300) 3,343
US SPP (2022-2030) 175 144 532 (496) 515
US MISO (2022-2027) 311 240 520 (438) 463
32/33
Consolidated financial statements
Interim financial report First quarter 2022
Market value of bond and bank debt
At 31 March, the market values of bond and
bank debts were DKK 37.5 billion and
DKK 16.0 billion, respectively.
Interest-bearing net debt totalled DKK 30,026
million at 31 March 2022, which was an increase of
DKK 5,746 million relative to 31 December 2021. The
main changes in the composition of our net debt
compared to 31 December 2021 was a decrease in
cash of DKK 5,078 million.
The table shows
which items are
included in the
adjusted interest-
bearing debt.
11. Interest-bearing debt and FFO
We aim to have a
long-term FFO/
adjusted NIBD at
above 25 % ,in line
with the rating
agencies.
Adjusted interest-bearing net debt
DKKm
31 March
2022
31 December
2021
31 March
2021
Total interest-bearing net debt 30,026 24,280 13,190
50 % of hybrid capital 8,992 8,992 8,992
Cash and securities not available
for distribution, excluding repo loans 1,114 2,130 1,159
Total adjusted interest-bearing
net debt 40,132 35,402 23,341
Funds from operations (FFO)/
adjusted interest-bearing net debt
31 March
2022
31 December
2021
31 March
2021
Funds from operations (FFO)/
adjusted interest-bearing net debt 25.0 % 31.3 % 59.4 %
Funds from operations (FFO) LTM
1
DKKm
31 March
2022
31 December
2021
31 March
2021
EBITDA 28,862 24,296 16,182
Change in provisions and other
adjustments (1,820) (422) (265)
Change in derivatives (5,203) (2,050) 795
Reversal of gain (loss) on divestment
of assets (9,563) (7,920) 192
Income tax paid (737) (1,380) (724)
Interest and similar items,
received/paid
(430) (467) (1,554)
Reversal of interest expenses
transferred to assets
(851) (782) (481)
50 % of coupon payments on
hybrid capital
(237) (215) (297)
Dividends received and
capital reductions
29 29 18
Funds from operations (FFO) 10,050 11,089 13,866
Interest-bearing debt and interest-bearing assets
DKKm
31 March
2022
31 December
2021
31 March
2021
Interest-bearing debt:
Bank debt 15,870 16,318 9,558
Bond debt 34,512 34,677 35,927
Total bond and bank debt 50,382 50,995 45,485
Tax equity liability 1,311 1,296 907
Lease liability 7,446 7,532 5,431
Other interest-bearing debt 1,411 535 804
Total interest-bearing debt 60,550 60,358 52,627
Interest-bearing assets:
Securities 20,416 21,228 30,154
Cash 4,865 9,943 7,830
Other receivables 4,496 4,150 711
Receivables in connection with divestments 747 757 742
Total interest-bearing assets 30,524 36,078 39,437
Total net interest-bearing debt 30,026 24,280 13,190
1
Last 12 months.
33/33
Consolidated financial statements
Interim financial report First quarter 2022
*Employee representative
Executive Board:
Board of Directors:
Statement by the Executive Board
and the Board of Directors
19/33
Management’s review
Interim financial report First quarter 2022
CVR no. 362137 28
Tel.: +45 9955 1111
Group Communication
Martin Barlebo
Tel.: +45 9955 9552
Investor Relations
Rasmus Keglberg Hærvig
Tel.: +45 9955 9095
Front page image
Service operation vessel (SOV), Winds of hope,
Hornsea 2, March 2022
Publication
29 April 2022