Orsted 2Q Profit Beats Views; Cautions On Offshore Wind Unit – MarketWatch

By Dominic Chopping

Danish renewable energy company Orsted AS on Thursday posted a higher-than-expected second-quarter net profit and cautioned that it has experienced significantly lower wind speeds than normal, especially across its offshore portfolio.

The company posted a net profit of 5.54 billion Danish kroner ($874.5 million) for the quarter from a loss of DKK1.89 billion a year earlier, as revenue rose 36% to DKK13.55 billion.

A FactSet analysts' forecast had expected net profit of DKK4.78 billion on revenue of DKK14.24 billion.

Orsted backed its full-year guidance still expecting earnings before interest, tax, depreciation and amortization, excluding new partnership agreements, of between DKK15 billion and DKK16 billion.

However, the company said full-year directional guidance for its main offshore unit has changed to significantly lower from lower, mainly due to the significantly lower than normal wind speeds across its entire offshore wind portfolio which has had a DKK1.4 billion impact versus a normal year up until the end of July. Guidance had also been affected by a DKK800 million warranty provision related to the earlier identified issues with cables at some of its wind farms.

The company now expects gross investments in 2021 between DKK39 billion and DKK41 billion from DKK32 billion-DKK34 billion previously.

Write to Dominic Chopping at dominic.chopping@wsj.com

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Orsted 2Q Profit Beats Views; Cautions On Offshore Wind Unit - MarketWatch