Orsted ((DK:ORSTED)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call from Ørsted painted a mixed picture for investors and stakeholders. While the company has made significant strides in strengthening its capital structure and advancing strategic projects, it faces notable challenges in the US market due to legal and tariff issues. These challenges have resulted in financial impairments and a net loss for the quarter, reflecting a complex landscape for the renewable energy giant.
Strengthened Capital Structure
Ørsted has taken decisive steps to bolster its financial foundation, completing a rights issue in early October. This move significantly strengthens its ability to manage ongoing challenges and pursue offshore wind opportunities, ensuring the company remains competitive in the rapidly evolving energy sector.
Partnership with Apollo
In a strategic move to further solidify its capital structure, Ørsted entered into an agreement with Apollo to divest a 50% ownership share in the Hornsea 3 project. Valued at approximately DKK 39 billion, this partnership not only enhances financial stability but also underscores Ørsted’s commitment to collaborative growth.
Strong Operational Performance
Despite facing lower wind speeds, Ørsted delivered an impressive DKK 17 billion of EBITDA for the first nine months. This achievement was driven by high availability within the offshore business, highlighting the company’s operational resilience and efficiency.
Offshore Wind Projects Progress
Ørsted’s offshore wind projects are making significant headway, with developments in Germany, the UK, Poland, Taiwan, and the US progressing well. Some projects are nearing completion, with power generation expected soon, marking a crucial step in Ørsted’s expansion strategy.
Legal and Tariff Challenges in the US
The Revolution Wind project in the US encountered a stop-work order due to an executive order, leading to increased costs and impairments totaling DKK 1.8 billion. These challenges, compounded by higher tariffs on steel and aluminum, pose significant hurdles for Ørsted’s US operations.
Impairments and Negative Net Profit
Ørsted reported a net loss of DKK 1.7 billion in Q3 2025, primarily due to impairments related to higher tariffs and stop-work orders in the US. This financial setback highlights the impact of external challenges on the company’s profitability.
Increased Costs for Greater Changhua 4
Adverse weather conditions, including a typhoon, have led to increased costs for the installation setup of Greater Changhua 4. These challenges have affected earnings under the construction agreement, emphasizing the unpredictable nature of large-scale renewable projects.
Forward-Looking Guidance
During the earnings call, Ørsted’s leadership provided detailed guidance on strategic priorities and financial performance. The company remains on track to meet its full-year EBITDA guidance of DKK 24 billion to DKK 27 billion, despite below-normal wind speeds. Ørsted’s construction portfolio, including the 8.1 GW offshore wind projects, is progressing well, with anticipated annual EBITDA run rates of DKK 11 billion to DKK 12 billion. The company is also implementing organizational efficiency measures expected to generate DKK 2 billion in annual cost savings by 2028.
In conclusion, Ørsted’s earnings call reflects a company navigating a complex landscape of opportunities and challenges. While significant strides have been made in strengthening its capital structure and advancing offshore projects, external factors such as legal and tariff issues in the US pose notable hurdles. Investors and stakeholders will be keenly watching how Ørsted addresses these challenges while pursuing its strategic goals.