- Ørsted has decided to halt the development of the Ocean Wind 1 and 2 projects. This decision is due to additional supplier delays causing further significant project delay.
- Additional reasons for the halt include updated assumptions on tax credit monetization, the timing and likelihood of final construction permits, and increases to long-dated US interest rates which have worsened the business case.
- A provision related to Ørsted ceasing the Ocean Wind 1 development will negatively impact Q4 2023 EBITDA. The provision is estimated to be approximately DKK 8-11 billion.
- Total impairments recognised in the interim financial report for the first nine months of 2023 amount to DKK 28.4 billion; DKK 19.9 billion of this is related to Ocean Wind 1.
- Ørsted is implementing measures to support its capital structure and long-term commitment to its credit rating. These measures include working capital improvements, prioritisation of development activities, portfolio rationalisation, and other actions.
- The company plans to update the market no later than in the Q4 2023 results announcement. This update will include potential implications to its long-term strategic ambition and financial targets.
- Ørsted has taken the final investment decision on the Revolution Wind project, which it owns in a 50/50 partnership with Eversource. This project has an attractive forward-looking value creation with a forward-looking spread to WACC above Ørsted’s guided range.
- Ørsted’s current outlook includes 15 buys, 18 holds, and 1 sell.
A look at Orsted AS Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Orsted A/S is a utility services company that provides renewable energy solutions to customers around the world. The company’s long-term outlook is promising, as evidenced by its Smartkarma Smart Scores. Orsted scored a 4 in Value, Dividend, and Growth, indicating a strong performance in these areas. Its Resilience Score of 3 indicates that the company is still in a strong position, and its Momentum Score of 2 suggests that it is still in an early stage of growth. Overall, this indicates that Orsted is well-positioned for long-term success.
Orsted is dedicated to providing renewable energy solutions to its customers. The company is investing in the development, construction, and operation of offshore wind farms, as well as generating power and heat from power stations. With its strong Smartkarma Smart Scores, Orsted is well-positioned to continue its growth and provide its customers with the renewable energy solutions they need.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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