Capital Markets Day: Ørsted confirms its ambition of ~50 GW renewable capacity by 2030 and strong financial outlook
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Ørsted A/S (Orsted)
7.6.2023 20:09:25 CEST | Ørsted A/S | Investor News Ørsted will host a Capital Markets Day (CMD) on 8 June 2023 to present recent progress and strategic updates on its ambition to become the world’s leading green energy major. Ørsted is committed to the following ambitions, financial targets, and financial policies for 2023-2030:
Ørsted expects to outperform EBITDA and ROCE targets set in 2021 Unprecedented political tailwind and growth potential Ørsted has delivered strong progress and is strongly positioned to capture expected market growth. With the largest portfolio of assets in operation as well as the largest project pipeline across Europe, the US, and the Asia-Pacific (APAC) region, Ørsted remains the global leader in offshore wind. In addition, Ørsted has significantly grown its onshore renewables business and has become a leading player in bringing commercial scale to Power-to-X (P2X). Mads Nipper, Group President and CEO of Ørsted, says: Industry-leading experience to support growth For the awarded projects where Ørsted has not yet taken final investment decision (FID), Ørsted is working intensely to ensure sufficient value creation to take FID, despite increases in interest rates, inflation, and supply chain bottlenecks. Ørsted is working with its suppliers to secure capacity and competitive prices, pursuing revenue optimisation, including corporate power purchase agreements (CPPAs), and continuing dialogues with regulators on measures to ensure sustainable industry growth. Ultimately, Ørsted may reconfigure or exit awarded projects where Ørsted has as of this date not yet taken FID if it finds the value creation in the projects not to be sufficient. For future projects, Ørsted’s pipeline will allow the company to prioritise the most value-creating projects and stay financially disciplined when bidding in tenders and auctions. In addition, Ørsted’s long-standing supplier relationships will ensure capacity at competitive prices, while its customer relationships make it a preferred partner in decarbonisation. Mads Nipper continues: “Ørsted has a clear strategic direction and very strong capabilities to capture the massive growth in renewables in the years to come. Based on where we believe we can create most value, we’ve made clear choices on where to play – and where not to play – in terms of regions, markets, and technologies. We’re leveraging all our capabilities to improve the returns of the portfolio of awarded offshore projects, and we’ll only take FID on projects that we find will create sufficient value. Going forward, we see strong opportunities to build our renewable portfolio, including by investing a majority of our CAPEX in offshore, targeting an unlevered, fully loaded lifecycle IRR at 150-300 basis points spread to WACC at the time of bid or FID, whichever comes first.” Sustainability remains an integrated part of Ørsted’s strategy, and the company remains committed to driving a systemic change in the industry. Ørsted has taken significant action with its suppliers to decarbonise its entire supply chain and is on track to reach its science-based targets of 98 % carbon emissions reductions (scopes 1 and 2) in 2025 and net-zero for the full value chain in 2040. Ørsted has entered partnerships with suppliers in relation to low-carbon foundations and towers as well as wind turbine blades made from recycled materials. In addition, Ørsted has committed to reusing or recycling all wind turbine blades and solar panels from its global portfolio with immediate effect and to only commissioning projects with a net-positive biodiversity impact from 2030. At the CMD, Ørsted will announce it has issued blue bonds of EUR 100 million to fund investments in projects related to maritime biodiversity and green fuels for shipping. Ørsted is the world’s first energy company to have issued blue bonds. Ørsted’s Capital Markets Day 2023 The Capital Markets Day will be livestreamed – register and follow it here: https://orsted.com/en/capital-markets-day/online-sign-up The presented material will be available for download on 8 June 2023 before the start of the CMD, and a replay of all CMD sessions will be made available at orsted.com. For further information, please contact: Media Relations Investor Relations
[1]Based on fully loaded, unlevered lifecycle IRR at the time of bid/FID, whichever comes first. The targeted range is not a hurdle rate, and consequently, projects might deviate from the targeted range. [2]Please see Ørsted’s annual report for 2022, p. 15. AttachmentsNews Source: Ritzau Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
| ISIN: | DK0060094928 |
| Category Code: | MSCM |
| TIDM: | Orsted |
| Sequence No.: | 249327 |
| EQS News ID: | 1652073 |
| End of Announcement | EQS News Service |
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