�
Salg & Service
Annual report 2024
Contents
Overview
Company information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4
Performance highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 5
Statement by the Executive Board and the
Board of Directors � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6
Independent auditor’s report � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7
Management’s review � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
Financial statements
Statement of comprehensive income � � � � � � � � � � � � � � � � � � � � � � � � � � � � 13
Statement of financial position � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14
Statement of shareholder’s equity � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 15
Statement of cash flows � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16
Notes
1 Basis of reporting � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18
2 Revenue � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
3 Cost of sales � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22
4 Employee costs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 23
5 Share-based payment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24
6 Other operating income and expenses � � � � � � � � � � � � � � � � � � � � � 25
7 Financial income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26
8 Financial expenses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26
9 Tax on profit (loss) for the year � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27
10 Intangible assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 28
11 Property, plant and equipment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30
12 Investment in subsidaries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 32
13 Derivatives � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 33
14 Fair value measurement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37
15 Maturity analysis of financial liabilities � � � � � � � � � � � � � � � � � � � � � 38
16 Deferred tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 39
17 Inventories � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 40
18 Trade receivables � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41
19 Other receivables and other payables � � � � � � � � � � � � � � � � � � � � � � 42
20 Income tax receivable and payable � � � � � � � � � � � � � � � � � � � � � � � � � 43
21 Equity � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 44
22 Provisions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 45
23 Contract liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46
24 Change in working capital � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46
25 Financial risks and risk management � � � � � � � � � � � � � � � � � � � � � � � 47
26 Contingent liabilities and other liabilities � � � � � � � � � � � � � � � � � � � 50
Other notes
27 Auditors fees � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 52
28 Related-party transactions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 53
29 Calculation of financial ratios � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 54
2 ØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Compan
y information
Company
Telephone: +45 99 55 11 11
Email: orsted@orsted.com
Company registration number: 2 7 21 0538
Shareholder
The entire share capital is held by Ørsted A/S
Board of Directors
Rasmus Errboe (Chair)
Anja Forup (Deputy Chair)
Heidi Lohse
Executive Board
Nicolaas Hendrikus den Hollander (CEO)
Auditor
PricewaterhouseCoopers, Statsautoriseret
Revisionspartnerselskab
Consolidated financial statements
The company is reflected in the group report of
the parent company Ørsted A/S, Fredericia, CVR no�
36 21 37 28
The group report of Ørsted A/S, Fredericia,
CVR no� 36 21 37 28 can be obtained at the following
address:
https://orsted�com/en/investors/ir-material/financial-
reports-and-presentations#financial-reports-
presentations-and-fact-sheets-2024
Annual general meeting
26 June 2025
4 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Performance highlights
DKKm 2024 2023 2022 2021 2020
Statement of comprehensive income
Revenue
1
34,941 44,671 75,751 45,785 20,519
Operating profit (loss) before depreciation
and amortisation (EBITDA) 2,861 6,051 516 79 (169)
Operating profit (loss) (EBIT) 2,826 5,980 419 (893) (280)
Net financial income and expenses 580 406 (326) 146 (152)
Profit (loss) before tax 3,406 6,399 96 (748) (432)
Profit (loss) for the year 2,662 5,002 67 (267) (638)
Balance sheet
Equity 22,107 29,468 19,215 5,903 9,348
Assets 38,558 50,100 88,299 69,215 21,007
Cash flows
Operating activities 8,248 17,884 (7,067) (10,682) 2,324
Investments in property, plant, and equipment (9) (17) - - -
Other investing activities - 394 (1) (45) (3)
Financing activities (7,909) (19,440) 8,120 11,474 (79)
Financial ratios
EBITDA margin 8 % 14 % 1 % 0 % (1 %)
EBIT margin (profit margin) 8 % 13 % 0 % (2 %) (1 %)
Net interest-bearing debt (20,392) (22,516) (4,513) 3,428 (7,955)
Capital employed 1,419 6,633 19,633 12,506 1,393
Average number of employees 264 277 269 256 267
Financial ratios have been calculated in accordance with ‘Recommendations & Ratios’ published by the
Danish Society of Financial Analysts� For definitions, see note 29 ‘Calculation of financial ratios’�
1 In 2023, we changed our accounting policy on recognition of revenue from the settlement of failed own-use
contracts related to power� The change only impacts revenue and cost of sales with no impact on EBITDA�
Revenue numbers for 2021 and 2020 are not adjusted�
5
OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Statement by the Executive
Board and the Board of Directors
6 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Independent auditor’s report
Opinion
Basis for Opinion
Management’s Responsibilities for the
Financial Statements
Statement on Management’s Review
Auditor’s Responsibilities for the Audit
of the Financial Statements
7 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
CVR No 33 77 1231
8 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Management’s review
Financial results
The Power Portfolio & Trading business related to
hedging and balancing of power generation in the
Ørsted Group showed a good performance in 2024,
but on a lower level than last year� Compared to last
year, we had a signicant lower positive impact from
fair-value recognised derivates used for hedging of the
Ørsted groups power portfolio, which are recognised
in the profit (loss) for the year
Our Gas Market & Infrastructure business had a
decrease in earnings� The decrease was the result of
a positive revaluation of our gas at storage in 2023,
which was not repeated to the same extent in 2024�
Revenue
Total revenue amounted to DKK 34�9 billion�
The decrease of 22 % relative to 2023 was primarily
due to lower power and gas prices across all markets�
Revenue from customers in the Power Portfolio &
Trading business decreased with DKK 3�4 billion which
was driven by DKK 5�0 billion lower revenue from
power sales, mainly due to a decrease in average
power prices� Decrease in power revenue was only
partly offset by a DKK 1�7 billion increase in revenue
from sale of renewable energy certificates, mainly due
to increased ROC prices�
Sold power volumes amounted to 34 TWh in 2024
which was slightly lower than last year, mainly due
to lower off-take on third-party power purchase
agreements�
Revenue from customers in our Gas Markets &
Infrastructure business decreased with DKK 1�5 billion,
driven by generally lower prices through out the year
compared to last year�
Sold gas volumes increased sligthly with 2 %
amounted to 18 TWh in 2024, mainly due to
increased sale on wholesale contracts and sale to
end-customers�
Revenue from our B2B end-customer business, both
gas and power decreased with DKK 0�6 billion, driven
by general lower gas and power prices, only partly off-
set by increased gas volumes sold�
EBITDA
EBITDA amounted to DKK 2�9 billion compared to
DKK 6�1 billion in 2023�
EBITDA from Power Portfolio & Trading sales
amounted to DKK 2�8 billion compared to DKK 5�5
billion in 2023� The decrease was mainly due to lower
gain (DKK 3�4 billion), from fair-value recognised
financial contracts, used for hedging purpose in the
Ørsted Group, but recognised in the income statement
Performance highlights 2024 2023 %
Business drivers
Gas sales TWh 18�0 17�7 2 %
Power sales TWh 34�0 34�7 (2 %)
Gas price, TTF EUR/MWh 34�3 41�4 (17 %)
Power price, DK
Power price, Germany
EUR/MWh
EUR/MWh
71�0
78�0
89�3
95�0
(21 %)
(18 %)
Power price, LEBA UK GBP/MWh 73�0 94�5 (23 %)
Financial results
Revenue DKKm 34,941 44,671 (22 %)
EBITDA DKKm 2,861 6,051 (53 %)
Power Portfolio & Trading 2,828 5,461 (48 %)
Gas Markets & Infrastructure 17 559 (97 %)
Other, incl� B2B end-customers 16 31 (48 %)
Depreciation and amortisation DKKm (35) (71) (51 %)
EBIT DKKm 2,826 5,980 (53 %)
Cash flows from operating activities DKKm 8,248 17,884 (54 %)
Gross investments DKKm (373) (26) 1,335 %
Divestments DKKm - 498 (100 %)
Cash flows from financing activities DKKm (7,909) (19,440) (59 %)
Free cash flow DKKm (34) (1,084) (97 %)
Capital employed DKKm 1,419 6,115 (59 %)
in Ørsted Salg & Service A/S, and lower gains from
power trading (DKK 0�4 billion), only partly offset by
increased earnings from balancing and management
of our power portfolio�
EBITDA from Gas Markets & Infrastructure totaled
DKK 17 million in 2024, DKK 542 million lower than
last year� The decrease was driven by lower earnings
from our gas trading in 2024, as result of a positive
revaluation of our gas at storage in 2023, which
was not repeated to the same extent in 2024� In
addition, earning was negative impacted from lower
revenue from our gas infrastructure assets, due to the
continued maintenance of the Tyra gas field in the
North Sea throughout 2024�
9 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Route-to-market and trading
We serve as an efficient route-to-market for
both Ørsted companies and third parties, by
providing balancing services for renewable
generation portfolios and by selling green
certificates to the market� In doing so, we
manage large volumes of power contracts
that we optimise by leveraging the size of our
combined portfolio and our origination and
trading capabilities�
We spearhead market risk management for
Ørsteds generation assets and contracts by
trading power, green certificates and other
commodities� We mitigate risks and create
value through time-to-market decisions, proxy
hedging and netting�
We ensure efficient operations and maximise
the commercial value of our legacy gas
portfolio�
We are utilizing our gas and power portfolio
by part of the volumes being sold to our B2B
customers in Denmark and the southern part
of Sweden�
Gas pipelines and storage facilities
We handle the commercial activities relating to
parts of the Ørsted Group’s gas infrastructure�
We own pipelines in the Danish sector of the
North Sea and have leased capacity across
the European pipeline system, securing access
to most gas markets in Northern Europe�
We have access to gas storage facilities
in Denmark and Germany, where we have
capacity on long-term or short-term�
Besides higher security of supply, these
storage facilities provide flexibility in our
gas optimisation and trading�
Environment
As part of the Ørsted Group, we work for
an increase in the use of renewable energy,
while remaining dependent on traditional
energy sources to ensure a stable distribution
of power�
Reference is made to the Ørsted Group’s
2024 annual report, which includes the
Group’s statutory environmental statement�
Introduction to Ørsted Salg & ServiceEBITDA from Other business activities amounted to
DKK 16 million, a decrease of DKK 15 million, which
was primarily due to reduced earnings from end-cus-
tomer sales�
Cash flows
Cash flows from operating activities amounted to DKK
8�2 billion in 2024 compared to DKK 17�9 billion in 2023�
During 2024, we released DKK 1�7 billion, net, in vari-
ation margin payments on un realised financial deriv-
atives and initial margin payments at clearing houses,
whereas we released DKK 8�9 in 2023� The changes are
specified as follows:
· the initial margin payments (part of ‘Change in
other receivables’), were a cash inflow of DKK 0�3
billion vs� a cash inflow of DKK 2�4 billion in 2023
· the variation margin payments were a cash inflow
of DKK 1�4 billion vs� a cash inflow of DKK 6�5 billion
in 2023�
Furthermore, cash flows from operating activities
were negatively impacted by DKK 0�8 billion in 2024
due to increased inventories compared to a positive
impact of DKK 1�9 billion in 2023�
Received income tax amounted to DKK 2�3 billion in
2024 compared to DKK 0�4 billion in 2023�
Cash flows outflow from investment activities
amounted to DKK 0�4 billion, mainly due to capital
injection in the subsidiary Danish Offshore Gas Sys-
tems A/S�
Negative cash flow from financing activities amounted
to DKK 7�9 billion mainly due to transactions with
Ørsted Group’s internal bank, inflow of DKK 2�1 billion
and paid dividend of DKK 10 billion to Ørsted A/S�
Earnings related to expected development assumed
in previous report
Financial performance for 2024 was lower than
expectations primarily driven by:
· Earnings in Power Portfolio & Trading ended up in line
with the expected range�
· In ‘Gas Markets & Infrastructure’, we achieved
lower earnings from our gas storage activities than
expected� Earnings from gas infrastructure assets
were lower than expected due to delayed produc-
tion from the Tyra field�
Consequently, realised EBITDA ended lower than our
expected range of DKK 3�2-3�8 billion for 2024 as
stated in our 2023 annual report�
Outlook 2025
For 2025, a higher EBITDA is expected� EBITDA is
expected to total DKK 2�9-3�4 billion in 2025�
· Power Portfolio & Trading earnings are expected to
be at the same level as in 2024�
· Gas Markets & Infrastructure are expected to
increase compared to 2024� The positive impact
on EBITDA in 2025 is driven by normalised earnings
from our gas storage activities�
10 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Events after the end of the financial year
No events have occurred after the end of the
financial year which have influenced the evaluation
of this annual report�
Risk management
The activities, financial position, results, and
future growth of the Ørsted Salg & Service A/S are
affected by a number of non-financial and financial
commercial risks� Therefore, we regularly review
our risk profile and the associated risk policies to
ensure the appropriate balancing of risk exposure
and activities at all times�
Formalised risk management is divided into:
· management of general commercial risks,
· management of financial risks and
· management of insurable risks�
Commercial risks are defined as events that may, with
a certain probability, adversely impact the realisa-
tion of the Ørsted Salg & Service A/S financial results
or strategy� The management of commercial risks is
anchored in the individual segments in the Ørsted Salg
& Service A/S and consolidated at corporate level�
Once annually, the Ørsted Salg & Service A/S identifies
and prioritises its risks in a risk matrix based on mate-
riality and probability� For further details of risk man-
agement, reference is made to note 25 ‘Financial risks
and risk management’�
In addition to these risks, we are involved in litigation
and arbitration proceedings, the outcome of which
may impact our financial position� Reference is made
to note 26 ‘Contingent liabilities and other liabilities’�
Management
The member of the Executive Board is:
Nicolaas Hendrikus den Hollander
CEO
The members of the Board of Directors are:
Rasmus Errboe
Chair of the Board of Directors
Anja Forup
Deputy Chair of the Board of Directors
Heidi Lohse
Member of the Board of Directors
For further details regarding remuneration, see note 4
‘Employee costs’ and note 5 ‘Share-based payment’�
Retention and development of skills
Our business is generally highly complex, requiring
special skills� Coupled with the growing demand
for talent, this increases the challenge of attracting
and retaining employees� Much emphasis is placed
on making us an attractive workplace, and various
initiatives have been put in motion for this purpose�
These include management development, skills
development, perform ance systems, talent
development, and collaboration with educational
institutions�
Liquidity and financing risks
Our liquidity and financing risks are managed
centrally by the Ørsted Group in accordance with
the defined principles and delegated authorities laid
down by the Board of Directors of Ørsted A/S, in such
a way as to ensure that we have an adequate capital
base and adequate cash resources at all times� One
of the most important financial management tasks
in the Ørsted Group is to secure sufficient and flexible
financial resources in relation to the Ørsted Group’s
day-to-day operations and investment programme�
For this purpose, internal management objectives
have been established determining required level
of financial resources, taking into account primarily
factors such as the investment programme, cash
flows from operating activities, and the debt maturity
profile� It is the Ørsted Group’s financing policy to
concentrate loans in the parent company in order to
optimise the loan portfolio on a consolidated basis�
Insurable risks
The Ørsted Group has an extensive facility and
liability insurance programme, while the scope of
consequential loss insurance is very limited� Also,
separate insurance is taken out for certain large
construction projects� The facilities insurance
largely relates to the membership of the reinsurance
company ´Oil Insurance Ltd�´ Through this, assets
up to USD 450 million are insured, with an excess
of USD 10 million per insurance event� With a view
to achieving adequate cover for a number of large
assets, this cover has been supplemented by a
number of supplementary insurance policies through
the commercial insurance market� As part of the
optimisation of its insurance portfolio, the Ørsted
Group has established a captive, Ørsted Insurance
A/S, that is authorised to carry on insurance business
and is subject to supervision by the Danish Financial
Supervisory Authority� Ørsted Insurance A/S is
primarily used to provide insurance cover for facilities
and certain constr
uction projects�
Environmental, social, and governance
statement (ESG)
In pursuance to Section 99a (7) of the Danish
Financial Statements Act, the Company has omitted
information on corporate social resonsibility� We are
part of the Ørsted Group, and reference is made to the
Sustainability statements, (prepared in accordance
with the ESRS standards adopted by the EU
Commission) which is part of the Annual Report of the
parent company Ørsted A/S�
Further details on ESG can be found at:
Statement of policy for data ethics
In pursuance of Section 99d of the Danish Financial
Statements Act, the Company has omitted information
on data ethics�
Reference is made to the Data Ethics statement 2024
for Ørsted A/S:
11 OverviewØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Statement of comprehensive income
1 January – 31 December
Note DKKm 2024 2023
2 Revenue 34,941 44,671
3 Cost of sales (31,322 ) (37,920 )
Other external expenses (434 ) (446 )
4, 5 Employee costs (301 ) (292 )
6 Other operating income and expenses (23 ) 38
Operating profit (loss) before depreciation, amortisation and impairment losses (EBITDA) 2,861 6,051
11, 12 Depreciation, amortisation and impairment losses on intangible assets and property, plant and equipment (35 ) (71 )
Operating profit (loss) (EBIT) 2,826 5,980
Gain on disposal of enterprises - 13
7 Financial income 1,267 2,030
8 Financial expenses (687 ) (1,624 )
Profit (loss) before tax 3,406 6,399
9 Tax on profit (loss) for the year (744 ) (1,397 )
Profit (loss) for the year 2,662 5,002
Other comprehensive income
1
:
Value adjustments of cash flow hedging (124 ) 2,725
Cash flow hedging transferred to revenue 32 3,979
Cash flow hedging transferred to other operating expenses 63 27
Tax on comprehensive income 6 (1,481 )
Total comprehensive income 2,639 10,252
Profit (loss) for the year is attributable to:
Shareholder in Ørsted Salg & Service A/S 2,662 5,002
Profit (loss) for the year 2,662 5,002
Total comprehensive income for the year is attributable to:
Shareholder in Ørsted Salg & Service A/S 2,639 10,252
Total comprehensive income 2,639 10,252
1
All items in ‘Other comprehensive income’ may be recycled to the income statement�
13
Financial statementsØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Statement of financial position
31 December
Note
Assets
DKKm 2024 2023
Rights 4 4
Completed development projects 38 56
Development projects in progress 36 12
10 Intangible assets 78 72
Land and buildings 2 2
Production assets 317 323
Production assets under construction 12 17
11 Property, plant and equipment 331 342
12 Investments in subsidiaries 426 87
13, 14, 15 Derivatives 395 351
16 Deferred tax 331 -
Other receivables - 7
Other non-current assets 1,152 445
Non-current assets 1,561 859
17 Inventories 4,352 3,572
13, 14, 15 Derivatives 5,680 13,781
18 Trade receivables 4,713 4,883
Receivables from group enterprises 21,654 24,151
19 Other receivables 592 779
20 Income tax - 2,035
Cash 6 40
Current assets 36,997 49,241
Assets 38,558 50,100
Note
Equity and liabilities
DKKm 2024 2023
Share capital 2,610 2,610
Hedging reserve 296 319
Development cost reserve 36 12
Retained earnings 7,165 16,527
Proposed dividend 12,000 10,000
21 Equity 22,107 29,468
22 Provisions 1,105 1,173
13, 14, 15 Derivatives 333 288
23 Contract liabilities 3 4
16 Deferred tax - 154
Other payables - 7
Non-current liabilities 1,441 1,626
22 Provisions 98 21
13, 14, 15 Derivatives 6,297 11,930
23 Contract liabilities 100 113
Trade payables 4,344 4,160
Payables to group enterprises 2,552 2,566
19 Other payables 158 214
20 Income tax 1,444 -
Bank loans 17 2
Current liabilities 15,010 19,006
Liabilities 16,451 20,632
Equity and liabilities 38,558 50,100
14
Financial statementsØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Statement of shareholder’s equity
1 January – 31 December
2024 2023
DKKm
Share
capital
Hedging
Reserve
Development
cost reserve
Retained
earnings
Proposed
dividend Tota l
Share
capital
Hedging
Reserve
Development
cost reserve
Retained
earnings
Proposed
dividend Tota l
Equity at 1 January 2,610 319 12 16,527 10,000 29,468 2,610 (4,931 ) 79 21,457 - 19,215
Comprehensive income for the year:
Profit (loss) for the year - - 24 2,638 - 2,662 - - (67 ) 5,069 - 5,002
Impact from cash flow hedging - (29 ) - - - (29 ) - 6,731 - - - 6,731
Tax on cash flow hedging - 6 - - - 6 - (1,481 ) - - - (1,481 )
Total comprehensive income - (23 ) 24 2,638 - 2,639 - 5,250 (67 ) 5,069 - 10,252
Transactions with owners:
Share-based payment - - - - - - - - - 1 - 1
Proposed dividend - - - (12,000 ) 12,000 - - - - (10,000 ) 10,000 -
Dividend paid - - - - (10,000 ) (10,000 ) - - - - - -
Total changes in equity - (23 ) 24 (9,362 ) 2,000 (7,361 ) - 5,250 (67 ) (4,930 ) 10,000 10,253
Equity at 31 December 2,610 296 36 7,165 12,000 22,107 2,610 319 12 16,527 10,000 29,468
Hedging reserve after tax at 31 December 2024
amounting to DKK 296 million is further specified in
note 13 ‘Derivates’� Hedging reserve before tax at
31 December 2024 amounted to DKK 379 million�
15 Financial statementsØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Note DKKm 2024 2023
Operating profit (loss) before depreciation and amortisation (EBITDA) 2,861 6,051
Change in derivatives 2,439 5,130
Change in provisions (14 ) (14 )
Other items 7 50
24 Change in working capital 100 5,897
Interest income and similar items 1,161 1,849
Interest expenses and similar items (562 ) (1,520 )
Income tax paid 2,256 441
Cash flows from operating activities 8,248 17,884
10 Purchase of intangible assets (24 ) (9 )
11 Purchase of property, plant and equipment (9 ) (17 )
12 Divestment of subsidiaries - 104
Other investments - 394
Investment in subsidiaries (340 ) -
Cash flows from investing activities (373 ) 472
Financial transactions with the Ørsted Croup’s internal bank 2,077 (16,465 )
Instalments on loans from Ørsted Group - (5,001 )
Deposit of restricted cash - 2,045
Proceeds from raising loans 15 -
Instalments on leases (1 ) (19 )
Paid dividend (10,000 ) -
Cash flows from financing activities (7,909 ) (19,440 )
Total net change in cash and cash equivalents (34 ) (1,084 )
Cash and cash equivalents at 1 January 40 1,124
Total net change in cash and cash equivalents (34 ) (1,084 )
Cash and cash equivalents at 31 December 6 40
Statement of cash flows
1 January – 31 December
§ Accounting policies
The statement of cash flows shows cash flows
for the year from operating, investing, and
financing activities, the year’s changes in cash
and cash equivalents, and cash and cash equiv-
alents at the beginning and end of the year�
The cash flow effect of acquisitions and divest-
ments of enterprises is disclosed separately
under ‘Cash flows from investing activities’�
Cash flows relating to acquired enterprises are
recognised in the statement of cash flows from
the date of acquisition, and cash flows relating
to divested enterprises are recognised up to the
date of divestment�
‘Cash flows from operating activities’ are deter-
mined using the indirect method as operating
profit adjusted for non-cash operating items,
changes in working capital, interest received and
paid, dividends received, and income tax paid�
‘Cash flows from investing activities’ comprise
payments in connection with the acquisition
and divestment of enterprises and activities;
purchase and sale of intangible assets, property,
plant and equipment and other non- current
assets; and purchase and sale of securities that
are not recognised as cash and cash equivalents�
‘Cash flows from financing activities’ comprise
changes in the size or composition of share
capital and costs associated with such changes
as well as the raising of loans, repayment of
interest -bearing debt, purchases and sales of
treasury shares, instalments on leases and pay-
ment of dividends to owners�
Cash flows relating to assets held under leases
are recognised as payment of interest and
repayment of debt�
Cash and cash equivalents comprise cash as
well as securities that form part of the ongoing
cash management, are readily convertible to
cash, and are subject to an insignificant risk of
changes in value�
Cash flows in currencies other than the func-
tional currency are translated at the average
exchange rates for the month in question,
unless these differ significantly from the rates
at the transaction date�
16
Financial statementsØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Basis of reporting
Note 1
Transactions in currencies, other than the functional
currency of DKK, are accounted for as transactions in
foreign currencies and translated on initial recognition at
the exchange rate at the transaction date� Exchange dif-
ferences arising between the exchange rate at the trans-
action date and at the date of payment are recognised in
profit (loss) for the year as financial income or expenses�
Receivables, payables, and other monetary items
in foreign currencies are translated at the exchange
rates at the balance sheet date� The difference
between the exchange rate at the balance sheet date
and the date at which the receivable or payable arose
is recognised in profit (loss) for the year as financial
income or expenses�
Balance sheet items are translated at the exchange
rates at the balance sheet date� All exchange differ-
ences are recognised in profit (loss) for the year�
Key accounting estimates and judgements
The use of reasonable estimates and judgements is
an essential part of the preparation of the financial
statements�
Given the uncertainties inherent in our business
activities, we make a number of estimates regarding
judgements� The estimates and judgements are based
on assumptions concerning future developments
which affect our application of accounting policies
and reported amounts of our assets, liabilities, sales,
costs, cash flows, and related disclosures� Actual
Accounting policies
Ørsted Salg & Service A/S is a public limited liability
company based in Denmark�
The financial statements for the period 1 January –
31 December 2024 comprise the parent company
Ørsted Salg & Service A/S�
The financial statements have been prepared in
accordance with IFRS Accounting Standards as
adopted by the EU and further requirements in the
Danish Financial Statements Act (Årsregnskabs-
loven)� We provide a more detailed description of
the accounting policies applied in the specific notes�
The accounting policy have been applied consitently
in the financial year and for comparative figures�
Pursuant to sections §112, of the Danish Financial
Statements Act, the company has not prepared
consolidated financial statements�
Measurement basis
The financial statements have been prepared on
historical cost basis, except for derivatives, financial
instruments in the trading portfolio, and carbon
emission allowances in trading portfolio which are
measured at market value�
Foreign currency translation
The financial statements are presented in million
Danish kroner (DKK), unless otherwise stated�
amounts may differ from the amounts estimated
and estimates made, as more detailed information
becomes available�
We regularly reassess these estimates and judgements
based, on among other things, historical experience,
the current situation in the financial markets, and a
number of other relevant factors�
Change in estimates are recognised in the period in
which the estimate in question is revised�
Accounting estimates, judgements and assumptions
which may entail a risk of material adjustments in
subsequent years are listed in the table on page 19�
In addition, we make judgements when we apply the
accounting policies�
Reference is made to the specific notes for further
information on the key accounting estimates and
judgements as well as the assumptions applied�
Implementation of new and changed accounting
standards and interpretations
The International Accounting Standards Board (IASB)
has issued amended standards that are effective for
the first time in 2024� None of them required a change
in our accounting policies�
New standards and interpretations
IASB has issued new or amended standards and
interpretations that have not yet become effective
and have consequently not been implemented
in the financial statements for 2024� Ørsted
expects to adopt the accounting standards and
interpretations as they become mandatory� In 2024,
IASB statements issued IFRS 18 ‘Presentation and
Disclosure in Financial Statements‘ which replaces
IAS 1 ‘Presentation of Financial Statements’� Ørsted
is currently working to identify all impacts the
amendments will have on the financial statements
and notes to the financial statements� Besides that,
the new or amended standards or interpretations are
not expected to have a significant impact on our
financial statements�
18 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Note Key accounting estimates and judgements Estimate/judgement Potential impact from accounting estimates and judgements
22, 26 ‘Provisions’ and ‘Contingent liabilities and other liabilities’
Assumptions for decommissioning obligations Estimate
Estimate of onerous contracts Estimate
Estimate of litigation outcomes Estimate
25 ‘Financial risk and risk management’
Valuation of long-term power purchase agreements Estimate/judgement
Hedge accounting Estimate/judgement
The impact relates to objectivity and business practice�
Very objective/market-conforming
Objective/partially conforming
Partially subjective/partially distinctive
Subjective/distinctive for Ørsted Salg & Service A/S
Basis of reporting
Note 1 – continued
19 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Revenue
Note 2
DKKm
Power Portfolio
& Trading
Gas Markets
and Infra-
structure
Other,
incl. end-
customers
sales
2024
To t a l
Power Portfolio
& Trading
Gas Markets
and Infra-
structure
Other,
incl. end-
customers
sales
2023
To t a l
Sale of gas - 3,508 1,169 4,677 91 4,907 1,315 6,313
Sale of power 18,486 101 1,481 20,068 23,495 94 1,906 25,495
Sale of renewable energy certificates 8,613 - - 8,613 6,921 - - 6,921
Other revenue 3 111 - 114 7 172 - 179
Total revenue from customers 27,102 3,720 2,650 33,472 30,514 5,173 3,221 38,908
Trading activities, net 866 443 - 1,309 1,283 740 - 2,023
Miscellaneous revenue 160 - - 160 3,584 156 - 3,740
Total revenue 28,128 4,163 2,650 34,941 35,381 6,069 3,221 44,671
Timing of revenue recognition from customers
At a point in time 19,968 1,058 - 21,026 25,485 3,811 - 29,296
Over time 7,134 2,662 2,650 12,446 5,029 1,362 3,221 9,612
Total revenue from customers 27,102 3,720 2,650 33,472 30,514 5,173 3,221 38,908
Revenue
‘Total revenue from sale of goods’ in 2024 amounted
to DKK 34,791 million (2023: 44,471 million) and
‘Total revenue from sale of services’ 2024 amounted
to DKK 150 million (2023: 200 million)�
Timing of revenue
The timing of transfer of goods or services to customers
is categorised as follows:
‘At a point in time’ mainly comprises:
· sale of gas or power in the market, e�g� Nord Pool, TTF
and NBP�
‘Over time’ mainly comprises:
· delivery of gas and power to end-customers
· long-term contracts with customers
to deliver gas or power�
20 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
§ Accounting policies
Revenue is measured based on the consideration
specified in a contract with a customer (transaction
price) and excludes amounts collected on behalf of
third parties, i�e� VAT� We recognise revenue when
we transfer control over a product or service to a
customer�
We adjust the transaction price for the time value of
money if the payments exceed twelve months�
Sales agreements are divided into individually identi-
fiable performance obligations� If a sales agreement
includes several performance obligations, the sales
agreement’s transaction price is allocated to each
performance obligation’s stand-alone selling price�
Sale of gas
Revenue is recognised when control of the gas is
transferred to the buyer� Transfer of control occurs
either when the gas is injected into the distribution
system or physically delivered to the customer�
Sales contracts for a fixed amount of gas at a variable
price, or where we are exclusive suppliers to the
customer at a variable price, are considered one
performance obligation with multiple deliveries to be
satisfied over time� For such contracts, we recognise
revenue in the amount up to which we have a right
to invoice�
In most cases, the consideration for the gas is due
when the gas is injected into the distribution system
or delivered to the customer� The delivery of gas is
invoiced on a monthly basis, and the payment is due
within 10-30 days�
Sale of power
Revenue from sale of power includes the sale of power
produced at Ørsted owned wind farms, the sale of
power sourced from other producers, and the sale of
ancillary services�
Revenue is recognised when control of the goods is
transferred to the buyer� Transfer of control occurs
when the actual power is delivered to the customer,
which for power generated by us occurs when it is
produced�
Sales contracts for a fixed amount of power at a
variable price, or where we are exclusive suppliers to
the customer at a variable price, are considered one
performance obligation with multiple deliveries to be
satisfied over time� For such contracts and for long-
term agreements on selling power at a fixed price, we
recognise revenue in the amount up to which we have
a right to invoice�
In most cases, the consideration for the power is due
when the actual power is delivered to the customer�
The delivery of power is invoiced on a monthly basis,
and the payment is due within 10-30 days�
Revenue from failed own-use power contracts are rec-
ognised on a net basis� These are contracts settled with
delivery of physical power where the purpose of enter-
ing into them are hedging or optimisation of our
revenue�
Renewable energy certificates
Revenue from sale of certificates includes the sale of
renewable energy certificates bought from Ørsted
owned wind farms and external windfarms�
Revenue is recognised when control of the certificates
are transferred to the customer�
Other revenue
Other revenue primarily includes consultancy services�
Revenue from providing services is recognised in the
accounting period in which the services are rendered�
For fixed-priced contracts, revenue is recognised
based on the actual service rendered at the end of the
reporting period as a proportion of the total services to
be rendered because the customer receives and uses
the benefits simultaneously� This is determined based
on the actual labour hours spent relative to the total
labour hours expected�
Fixed-price contracts are invoiced on a monthly basis,
and consideration is payable when invoiced� Variable
fee services are generally due after the services are
rendered�
Trading activities net
Income from trading activities comprises net realised
and unrealised fair value changes, realised gains and
losses arising from trading within energy commodity
derivatives and inventory held for trading� The energy
commodity derivatives make up Ørsted Salg & Service
A/S trading portfolio which includes futures, options,
swaps, transport, capacities and certain forward sales
and forward purchases commodity contracts that are
either financially or physically settled�
As the physically settled contracts are managed on a
portfolio basis, a practice of net settlement is present,
and the contracts are considered in scope of IFRS 9
and treated as derivatives� Net changes in fair value of
commodity derivatives and net changes in fair value
of inventory held for trading represents unrealised
changes in the fair value of commodity derivatives and
net changes in fair value of inventory held for trading
at the balance sheet date�
Miscellaneous revenue
Miscellaneous revenue primarily comprises income
from unrealised fair value changes from derivative
financial instruments that acts as economic hedning of
energy generation in related Ørsted Group companies,
but where the exposure is not yet transferred to Ørsted
Salg & Service A/S, or value adjustment of derivative
financial instruments that acts as economic hedges
of the company´s primary activities, but where hedge
accounting are not applied�
21
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Cost of sales
Note 3
§ Accounting policies
Cost of sales
Cost of sales for fuel and energy comprises the
purchases of fuel in the form of gas and power
and transportation costs in connection with the
purchase as well as costs related to carbon
emission allowances� Costs are recognised in
profit for the year as incurred�
Other external expenses
Other external expenses comprise expenses for
maintenance of production equipment, rent,
external assistanse, research and development
and office supplies, etc��
DKKm 2024 2023
Gas (4,361) (5,631)
Power (26,196) (31,225)
Distribution and transmission costs (428) (766)
Other cost of sales (337) (298)
Cost of sales (31,322) (37,920)
22
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Employee costs
Note 4
Remuneration for key management personnel
DKKm 2024 2023
Fixed salary (6�5) (6�6)
Short-term cash-based incentive scheme (2�5) (2�6)
Share-based payments (0�9) (0�9)
Pension, incl� social security and benefits (1�6) (2�0)
Salary in notice period (3�6) (1�8)
Severance payment (2�0) (2�4)
To t a l (17.1) (16.3)
DKKm 2024 2023
Wages, salaries, and remuneration (280) (270)
Share-based payment - (1)
Pensions (20) (20)
Other social security costs (1) (1)
Total employee costs (301) (292)
Number of full-time employees
Average for the financial year 264 277
§ Accounting policies
Employee costs comprise wages, salaries,
remuneration, pensions, social security costs
and other employee-related costs�
Number of employees
Employee data is recognised based on records
from the Group’s ordinary registration systems�
The number of employees is determined as the
number of employees at the end of each month
converted to full-time equivalents (FTEs)�
Employees who have been made redundant
are recognised until the expiry of their notice
period, regardless of whether they have been
released from all or some of their duties during
their notice period�
All employees are legally employed in other
Ørsted Group companies�
The total remuneration stated in the note only
includes remuneration attributable to Ørsted Salg
& Service A/S�
In 2024, 264 full-time employees are disclosed, as
the employees have spend their full working time for
Ørsted Salg & Service A/S� All employees are however
legally employed by other Ørsted Group companies�
The Executive Board is made up of one person, who
is also key management person� Therefore we have
applied the exemption in §98 b) stk 3 in the Danish
Annual Report Act and not shown the salary to the
Executive Board�
The board of directors has not been paid remuneration�
23 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Share-based payment
Note 5
Share programme
The Executive Board and a limited number of other
members of senior management parti cipate in our
share programme established in 2016� Five senior
executives from Ørsted Salg & Service participate in
the programme� As a condition for the granting of
perfor mance share units (PSUs), the participant must
own a number of shares in Ørsted corresponding to
a portion of the individual participant’s annual fixed
salary� The ownership requirement is between 15-75 %
of the fixed salary�
The participants in the programme must invest in
Ørsted shares prior to the first granting� A build-up
period for the shareholding requirement of up to five
years is allowed�
If the participants fulfil the shareholding requirement
at the time of granting, they will be granted a number
of PSUs each year, representing a value of 15-20 % of
the annual fixed salary on the date of granting�
The granted PSUs have a vesting period of approximately
three years� Then, each PSU entitles the holder, without
payment, to receive a number of shares corresponding
to 0-200 % of the number of PSUs granted� The vesting
is conditional upon continued employment� Assuming
no share price development since the grant, the value
would correspond to 0-30 % or 0-40 % of the fixed
salary on the date of grant�
The final number of shares for each participant will
be determined on the basis of the total shareholder
return delivered by Ørsted, benchmarked against ten
comparable European energy companies�
The highest rate (200 %) will be triggered if Ørsted’s
results, measured as the total return to shareholders,
outperform those of the comparable companies�
For each lower ranking, the number of shares granted
will fall by 20 percentage points� If, for example,
Ørsted ranks third, the participants will be entitled to
160 % of the target�
If Ørsted ranks 11 in the comparison, no shares will
be granted to the participants� The right to shares is
conditional upon continued employment�
§ Accounting policies
The share programme is classified as an
equity-based programme, as the programme
is settled in shares� The market value of the
PSUs and the estimated number of PSUs
granted are measured at the time of granting
and recognised in the income statement under
employee costs over the vesting period and
in the balance sheet under equity over the
vesting period�
The valuation of the PSUs and the estimated
number of PSUs granted are carried out as a
probability simulation based on the expected
performance of Ørsted’s total shareholder
return relative to ten comparable European
energy companies� The expectations are
factored into the market value and are not
adjusted subsequently�
24
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
DKKm 2024 2023
Ineffective hedges - 27
Other compensation 18 -
Miscellaneous operating income 22 11
Total other operating income 40 38
Ineffective hedges (63) -
Total other operating expenses (63) -
Other operating income and expenses, net (23) 38
Other operating income and expenses
Note 6
Ineffective hedges includes volume-ineffective
hedges as a consequence of lower-than-expected
offshore generation, resulting in us having hedged
too large volumes�
Furthermore, it includes other hedges, which
we cannot document as being effective from
a hedge accounting perspective and therefore
have recognised in the income statement�
§ Accounting policies
Other operating income and expenses com-
prises items secondary to the activities�
Losses from our market trading activities
are presented as other operating income or
expenses as ‘Ineffective hedges, etc�’
25
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Financial income
Note 7
Financial expenses
Note 8
DKKm 2024 2023
Interest income 17 12
Interest income from group enterprises 804 631
Foreign exchange gains 391 1,346
Other financial income 55 41
Financial income 1,267 2,030
Revenue for the year includes exchange rate and fair value adjustments of: (47) (36)
DKKm 2024 2023
Interest expenses (252) (209)
Interest expenses to group enterprises - (13)
Interest element of provisions (28) (26)
Foreign exchange losses (407) (1,376)
Financial expenses (687) (1,624)
§ Accounting policies
Financial income and financial expenses
comprise interest, capital gains and losses,
and impairment losses relating to securities,
payables, and transactions denominated in
foreign currencies, amortisation of financial
assets and liabilities, including lease commit-
ments under finance leases, as well as sur-
charges and refunds under the on-account
tax scheme, etc�
Financial income and financial expenses
also include realised and unrealised gains
and losses relating to derivative financial
instruments that have not been entered into
to hedge revenue or production costs� Interest
is recognised in accordance with the accrual
basis of accounting�
Borrowing costs relating to general borrowing
or loans directly attributable to the acquisition,
construction, or development of qualifying
assets form part of the cost of such assets�
26
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
DKKm 2024 2023
Tax for the year can be specified as follows:
Tax on profit (loss) for the year (744) (1,397)
Tax on other comprehensive income 6 (1,481)
Total tax for the year (738) (2,878)
Tax on profit (loss) for the year can be broken down as follows:
Current tax (1,310) 3,705
Deferred tax 568 (5,100)
Adjustments to current tax in previous years 81 (1,506)
Adjustments to deferred tax in previos years (83) 1,504
Tax on profit (loss) for the year (744) (1,397)
Tax on profit (loss) for the year can be explained as follows:
Calculated 22 % tax on profit (loss) before tax (749) (1,408)
Tax effect of:
Non-deductible costs (4) -
Non-taxable income 11 13
Adjustments to tax in previous years (2) (2)
Tax on profit (loss) for the year (744) (1,397)
Effective tax rate 22 % 22 %
Tax on profit (loss) for the year
Note 9
§ Accounting policies
The Ørsted Group is subject to the Danish
rules on compulsory joint taxation and has
also opted for international joint taxation with
the Group’s foreign subsidiaries� The Group’s
subsidiaries are included in the joint taxation
from the date they are included in the
consolidation in the consolidated financial
statements and up to the date at which they
are no longer included in the consolidation�
The parent company, Ørsted A/S, is the
administration company in relation to the
joint taxation and thus settles all payments
of income tax with the tax authorities�
The current Danish income tax is allocated
among the jointly taxed Danish subsidiaries
in proportion to their taxable income� In this
connection, Danish subsidiaries with tax losses
receive a joint taxation contribution from the
parent company corresponding to the tax value
of the unutilised losses (full allocation), while
companies that use tax losses in other Danish
companies pay a joint taxation contribution to
the parent company corresponding to the tax
value of the utilised losses�
Being made up of the year’s current income
tax, the year’s joint taxation contributions
and changes in deferred tax, including – as a
consequence of changed tax rates – tax for
the year is recognised in the income statement
with the part attributable to the profit (loss)
for the year and directly in equity with the part
attributable to entries directly in equity�
The Group is included in a Danish on-account
tax scheme� Tax refunds and tax surcharges
are allocated between the jointly taxed Danish
companies in accordance with the allocation
of the Danish income tax and recognised
as financial income and financial expenses,
respectively�
27
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Intangible assets
Note 10
DKKm Rights
Completed
development
projects
Development
projects in
progress To t a l
Cost at 1 January 2024 68 465 12 545
Addition - - 24 24
Cost at 31 December 2024 68 465 36 569
Amortisation and impairment losses at 1 January 2024 (64) (409) - (473)
Amortisation and impairment losses - (18) - (18)
Amortisation and impairment losses at 31 December 2024 (64) (427) - (491)
Carrying amount at 31 December 2024 4 38 36 78
Cost at 1 January 2023 68 411 78 557
Addition - - 10 10
Disposals - (22) - (22)
Transferred between categories - 76 (76) -
Cost at 31 December 2023 68 465 12 545
Amortisation and impairment losses at 1 January 2023 (64) (391) - (455)
Amortisation and impairment losses - (38) - (38)
Disposals - 20 - 20
Amortisation and impairment losses at 31 December 2023 (64) (409) - (473)
Carrying amount at 31 December 2023 4 56 12 72
Impairment testing
The carrying amounts of development projects in
progess, rights and completed development projects
are assessed annually to determine whether there is
any indication of impairment� If any such indication
exists, an impairment test is carried out�
There were no indications of impairment in 2024�
Rights
Rights consist predominantly of customer- related rights�
At 31 December 2024, the carrying amount of rights
was DKK 4 million (2023: DKK 4 million)�
There were no indications of impairment of rights
in 2024�
Development projects
Completed development projects related to IT
software� At 31 December 2024, the carrying
amount of development projects was DKK 38 million
(2023: DKK 56 million)�
Development projects in progress are related to
development of IT software�
28 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
§ Accounting policies
Rights
Rights comprise acquired customer rights
and an Indefeasible Right of Use (IRU) of fiber
optic cables� Rights are measured at cost less
accumulated amortisation and impairment
losses� Rights are amortised on a straight-line
basis over their estimated future useful lives,
which are 5 years for customer rights an 50
years for IRU�
Development projects
Development projects comprise development
of IT systems, etc�
Development projects that are clearly defined
and identifiable, and for which technical
feasibility, adequate resources, a potential future
market, or an application in the company can be
demonstrated, and which the company intends
to manufacture, market, or use, are recognised
in intangible assets if the cost can be determined
reliably, and if there is reasonable certainty
that the future earnings or the net selling
price will cover production costs, selling costs,
administrative expenses, and development
costs� Other development costs are recognised
in the income statement as incurred�
Recognised development costs are measured
at cost less accumulated depreciation and
impairment losses� Cost comprises salaries,
amortisation, and other costs attributable
to the company’s development activities as
well as borrowing costs relating to specific
and general borrowing directly attributable
to development projects�
On completion, development projects are
amortised on a straight-line basis over their
assessed future useful lives from the date the
asset is available for use� The amortisation
period is usually five years� The basis of
amortisation is reduced by any impairment
losses�
Amortisation and impairment losses relating
to intangible assets are recognised in the
statement of comprehensive income�
Impairment of non-current assets
Intangible assets with an indefinite useful life
are tested for impairment annually, initially
before the end of the year of acquisition�
Development projects in progress are also
tested annually for impairment�
An impairment loss is recognised whenever the
carrying amount of an asset or cash- generating
unit exceeds the recoverable amount of the
asset or the cash-generating unit� Impairment
losses are recognised in the income statement
under production costs and administrative
expenses, respectively�
Impairment losses are reversed to the extent
that the assumptions or estimates that led to
the impairment have changed� Impairment
losses are only reversed to the extent that the
asset’s new carrying amount does not exceed
the value of the asset after depreciation
or amortisation, had no impairment losses
been charged�
29
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Property, plant, and equipment
Note 11
DKKm
Land and
buildings
Production
assets
Fixtures
and fittings,
tools and
equipment
Property, plant,
and equipment
under
construction To t a l
Cost at 1 January 2024 11 8,336 4 17 8,368
Additions - - - 9 9
Disposals - (285) (3) - (288)
Transferred between categories - 14 - (14) -
Adjustment of decommissioning obligations - (5) - - (5)
Cost at 31 December 2024 11 8,060 1 12 8,084
Depreciation and impairment losses at 1 January 2024 (9) (8,013) (4) - (8,026)
Disposals - 287 3 - 290
Depreciation and impairment losses - (17) - - (17)
Depreciation and impairment losses at 31 December 2024 (9) (7,743) (1) - (7.753)
Carrying amount at 31 December 2024 2 317 - 12 331
Cost at 1 January 2023 11 8,336 4 - 8,351
Additions - - - 17 17
Cost at 31 December 2023 11 8,336 4 17 8,368
Depreciation and impairment losses at 1 January 2023 (9) (7,980) (4) - (7,993)
Depreciation and impairment losses - (33) - - (33)
Depreciation and impairment losses at 31 December 2023 (9) (8,013) (4) - (8,026)
Carrying amount at 31 December 2023 2 323 - 17 342
Impairment testing of property, plant and equipment
The carrying amounts of property, plant and equipment
are assessed annually to determine whether there is
any indication of impairment� If any such indication
exists, an impairment test is carried out�
There were no indications of impairment of property,
plant and equipment in 2024�
30 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
§ Accounting policies
Property, plant and equipment comprise land
and buildings, production assets and other
tools and equipment� Property, plant and
equipment which are not leases are measured
at cost less accumulated depreciation and
impairment losses�
Cost comprises the purchase price and any
costs directly attributable to the acquisition
until the date the asset is available for use�
The cost of self- constructed assets comprises
direct and indirect expenses for materials,
components, sub-suppliers, and wages� Finance
costs that can be attributed to a preparation
or production period are recognised in the
income statement as finance costs� Specific
and general borrowing costs attributable to a
construction period are recognised in the cost
of the asset constructed�
Cost is increased by the present value of the
estimated costs for dismantling and removing
the asset and restoring the site to the extent that
they are recog nised as a provision� The cost of
an assembled asset can be divided into separate
components that are each depreciated
separately if the useful lives of the individual
components differ�
In the case of assets held under lease agree-
ments, cost is determined as the lower of the
fair value of the assets and the present value of
future minimum lease payments� The present
value is determined using the interest rate
implicit in the lease as the discount rate or an
approximated value�
Subsequent costs, for example in connection
with replacement of parts of an item of property,
plant and equipment, are recognised in the
carrying amount of the asset in question when
it is probable that future economic benefits
will flow to the company from the expenses
incurred� Replaced parts are derecognised
from the balance sheet, and their carrying
amounts are taken to the income statement�
All other general repair and maintenance
expenses are recognised in the income
statement as incurred�
Development and construction costs relating to
property, plant and equipment are recognised,
until entry into service, in the balance sheet
under property, plant and equipment under
construction� Following entry into service,
these assets are transferred to the relevant
items in property, plant and equipment�
In the case of gas activities, cost is depreciated
using the unit-of-production method, taking
into account the expected earnings profile,
so that the depreciation pattern reflects the
expected earnings patterns�
In the case of other property, plant and equip-
ment, cost is basically depreciated on a straight-
line basis over the estimated future useful lives�
Depreciation periods for property, plant and
equipment:
The basis of depreciation is determined on
the basis of the asset’s residual value less any
impairment losses� The residual value is deter-
mined at the acquisition date and reassessed
annually� Depreciation ceases if the residual
value exceeds the carrying amount�
If the depreciation period or the residual value
changes, the effect on depreciation is recog-
nised prospectively as a change in accounting
estimates�
Depreciation and impairment losses are
recognised in the statement of comprehensive
income to the extent that depreciation is not
recognised in the cost of self-constructed
assets�
Gains and losses on the disposal of property,
plant and equipment are determined as the
difference between the selling price less selling
costs and the carrying amount at the date of
disposal� Gains and losses are recognised in the
income statement as ‘Other operating income’
or ‘Other operating expenses’�
Useful lifes Years
Buildings used for own purposes
1
20
Production assets: gas treatment plant
2
20-40
Production assets: marine pipelines
2
20-40
Fixtures and fittings, tools and equipment 3-10
Assets under construction
3
-
1
Land is not depreciated�
2
The depreciation profile takes into account that the use of the assets
changes substantially over the lives of the assets�
3
Depreciation does not commence until the date of entry into service,
at which date the assets are transferred to production assets�
31
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Investments in subsidiaries
Note 12
DKKm 2024 2023
Cost at 1 January 1,130 1,585
Investment in shares 340 -
Divestment of shares (1) (455)
Cost at 31 December 1,469 1,130
Value adjustments at 1 January (1,043) (1,408)
Divestment of shares - 365
Value adjustments at 31 December (1,043) (1,043)
Carrying amount at 31 December 426 87
Ørsted Salg & Service A/S subsidaries
Company name Registered office Currency
Share capital
in million
Ownership
interest
Ørsted Sales GmbH Hamburg, Germany EUR 1�0 100 %
Ørsted AB Gothenburg, Sweden SEK 5�0 100 %
Danish Offshore Gas Systems A/S Fredericia, Denmark DKK 35�0 100 %
Ørsted S&D (UK) Limited London, UK GBP 48�0 100 %
Ørsted Salg & Service NL, branch of Ørsted
Salg & Service A/S Denmark ’s-Gravenhage, the Netherlands EUR - 100 %
We have tested investments in subsidiaries for impair-
ment by comparing the expected future income in the
individual subsidiaries with their carrying amounts�
In 2024 a capital injection DKK 340 million was made
in Danish Offshore Gas Systems A/S�
In 2024 Ørsted Commercial Commodities A/S was
sold at a price of DKK 0�4 million to a group company�
In 2023 Orsted Markets GmbH, with a carrying
amount of DKK 90 million is divested internally to a
related company in the Ørsted Group� The divestment
has reduced costs with DKK 455 million and value
adjustments with DKK 365 million� Ørsted Salg &
Service A/S has received a payment of DKK 103
million, resulting in a gain of DKK 13 million in Ørsted
Salg & Srvice A/S�
§ Accounting policies
Investments in subsidiaries are measured at
cost� Cost is written down to the recoverable
amount whenever it exceeds the recoverable
amount�
32
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Derivatives
Note 13
Financial instruments by category
DKKm
2024 2023
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Assets
Derivative financial instruments held for trading 4,829 4,829 12,717 12,717
Financial assets measured at fair value via the income statement 4,829 4,829 12,717 12,717
Derivative financial instruments held for hedging 1,246 1,246 1,415 1,415
Derivatives (assets) measured at fair value 1,246 1,246 1,415 1,415
Trade receivables 4,713 4,713 4,883 4,883
Other receivables, cash, and cash equivalents 21,855 21,855 24,963 24,963
Financial assets measured at amortised cost 26,568 26,568 29,846 29,846
Equity and liabilities
Derivative financial instruments held for trading 5,258 5,258 10,760 10,760
Financial liabilities measured at fair value via the income statement 5,258 5,258 10,760 10,760
Derivatives finacial instruments held for hedging 1,372 1,372 1,458 1,458
Derivatives (liabilities) measured at fair value 1,372 1,372 1,458 1,458
Bank loans 17 17 2 2
Other payables 6,533 6,533 6,802 6,802
Financial liabilities measured at amortised cost 6,550 6,550 6,804 6,804
Categories of financial instruments
Financial instruments are used for various purposes�
The purpose determines the category, and whether
the value adjustment of the instrument should be
recognised in the profit (loss) for the year or as part of
the hedging reserve in equity�
The fair value of financial instruments measured at
amortised cost is identical to the carrying amount�
Fair value measurement
All assets and liabilities measured at fair value are
measured on a recurring basis�
Quoted prices comprise derivative financial instruments
that are traded in active markets� It is customary to
settle these trades on a daily basis�
Observable inputs comprise derivative financial
instruments where valuation models with observable
inputs are used to measure fair value� For commodity
derivatives we can directly apply the observable
commodity price adjusted for the credit risk on the
counterparty�
Significant non-observable inputs
Market values based on non-observable input com-
prise primarily long-term contracts on the purchase
or sale of power� Since there are no active markets
for the long-term prices of power, the market values
have been determined through an estimate of the
future prices based on an extrapolation of the forward
curve adjusted for inflation�
Estimating non-observable power prices
Since our corporate power puchase agreements
(CPPAs) are normally settled on the actual production,
and the power prices available 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 price (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�
Valuation principles and material 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� Market values are determined by the
Group Treasury & Risk Management function, which
reports to the Group CFO� The developments in
market values are monitored on a continuing basis
and reported to the Executive Committee�
33 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Energy price cash flow
hedge accounting 2023
DKKm
2024 2025 After 2025 2024 2025 After 2025
EBITDA impact
Power swaps, futures and options 2,899 1,302 1,196 401 1,067 1,048 1,128 614 335 179
Gas swaps and futures 1,005 351 596 58 154 207 (710) (594) (43) (73)
Oil futures 8 8 - - - - - - - -
Currency, forwards 1,272 1,268 (28) 32 194 203 (9) (3) (2) (4)
To t a l 1,415 1,458 409 17 290 102
Energy price cash flow
hedge accounting 2024
DKKm
Contractual
principal
amount
Maturity analysis Market value
Recognised in
comprehensive
income
Expected transfers to EBITDA
2025 2026 After 2026 Asset Liability 2025 2026 After 2026
EBITDA impact
Power swaps, futures and options 1,833 1,486 347 - 517 (514) 513 115 345 53
Gas swaps and futures 655 610 45 - 85 (182) (102) (72) (30) -
Currency, forwards 1�185 1,372 (186) (1) 644 (676) (32) (24) (8) -
To t a l 1,246 (1,372) 379 19 307 53
Derivatives
Note 13 – continued
34 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Economic hedging of fair values
DKKm
2024 2023
Receivables Payables
Hedging
instruments Net position Receivables Payables
Hedging
instruments Net position
EUR 6,640 (4,359) - 2,281 13,417 (7,449) - 5,968
USD 287 (296) - (9) 137 (527) - (390)
GBP 3,194 (5,978) - (2,784) 6,366 (8,987) - (2,621)
Other - - - - 24 - - 24
To t a l 10,121 (10,633) - (512) 19,944 (16,963) - 2,981
Contracts accounted for at fair value through profit or loss (EBITDA)
DKKm
2024 2023
Nominal
amount Fair value
Nominal
amount Fair value
Oil swaps and options 169 (147) 277 (492)
Gas swaps 930 384 1,504 2,307
Gas options 1,917 - 179 -
Power swaps 5,985 (1,002) 5,242 (419)
Power options 2,673 374 4,202 573
Carbon emission allowances 741 - 175 -
Currency forwards 98 (37) 191 (13)
To t a l (391) 1,956
Derivatives
Note 13 – continued
§ Accounting policies
Derivative financial instruments are used to
hedge currency and risks related to the price of
oil, gas, and power�
Derivative financial instruments are recognised
from the trading date as receivables (positive
fair values) and other payables ( negative fair
values), respectively, and are measured in the
balance sheet at fair value� Transaction costs
are added to the fair value on initial recognition,
unless the financial asset or financial liability is
measured at fair value with recognition of fair
value adjustments in profit (loss) for the year�
Positive and negative values are only offset if
the company is entitled to and intends to settle
several financial instruments net (in cash)�
The fair value of derivative financial
instruments is determined on the basis of
current market data and assumptions as well
as recognised valuation methods�
Value adjustments of derivative financial
instruments that act as economic hedges of the
company´s primary activities, but do not satisfy
the criteria for hedge accounting, are recognised
as revenue� Likewise, value adjustments of
financial contracts offered to customers
with a view to price hedging are recognised
as revenue� Value adjustments of financial
contracts that are not used as economic
hedges of the company’s principal activities or
are part of the company’s trading portfolio, are
recognised as financial income and expenses�
Under IFRS, contracts that involve physical
delivery may, in certain circumstances, be
accounted for as derivative financial instru-
ments� The classification is determined based
on an evaluation of the purpose of the contract
compared with the companys’s other activities�
35
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
§ Accounting policies – Continued
Contracts entered into in the course of the
company’s trading activities or as part of
certain hedging activities are classified
and accounted for as derivative financial
instruments, even though they are settled on
physical delivery�
Netting of financial assets
DKKm
Recognised
financial
assets,
gross
Financial
liabilities,
offset
Related amounts not netted in the balance sheet
Financial
assets
presented in
the balance
sheet
Liabilities
with
offsetting
rights
Security
received
Net
amount
31 December 2024
Derivative financial instruments 7,371 (3,080) 4,291 (1,000) (69) 3,222
Trade receivables 9,614 (4,916) 4,698 - - 4,698
31 December 2023
Derivative financial instruments 17,333 (7,273) 10,060 (1,718) (182) 8,160
Trade receivables 21,728 (16,849) 4,879 - - 4,879
Netting of financial liabilities
DKKm
Recognised
financial
liabilities,
gross
Financial
assets,
offset
Related amounts not netted in the balance sheet
Financial
liabilities
presented in
the balance
sheet
Assets
with
offsetting
rights
Security
provided in
the form
of bonds
Net
amount
31 December 2024
Derivative financial instruments 6,856 (3,080) 3,776 (1,000) - 2,776
Trade payables 9,246 (4,916) 4,330 - - 4,330
31 December 2023
Derivative financial instruments 13,977 (7,273) 6,704 (1,718) - 4,986
Trade payables 20,981 (16,849) 4,132 - - 4,132
Derivatives
Note 13 – continued
Netting of financial assets and liabilities
The netting agreements with the individual
counterparties are often limited to offsetting
within specific products� In addition, the
settlement of liabilities and the realisation of
assets do often not take place simultaneously�
We only offset positive and negative values if
we are entitled to and intend to settle several
financial instruments net�
Consequently, only some of the company’s
netting agreements meet the provisions in IFRS
on offsetting�
The table to the left show financial assets and
liabilities that are subject to netting agreements
and related security�
Net derivative assets valued on the basis of
non- observable inputs are specified in the table
on page 37�
36 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Derivatives valued on the basis of non-observable inputs
DKKm 2024 2023
Market value at 1 January (306) (86)
Gains and losses recognised in profit (loss) for the year as revenue 83 1,220
Sales and redemptions (506) (1,619)
Purchases and issues (37) 179
Transferred from quoted prices and observable input (35) -
Transferred to quoted prices and observable input (20) -
Market value at 31 December (821) (306)
Net assets can be specified as follows:
Assets 1,291 1,910
Liabilities 2,112 (2,216)
The main non-observable input is German power prices in the period 2025-2034� The average power price for the
period is estimated at DKK 420 per MWh, based on an inflation- adjusted extrapolation of the observable price�
An increase or decrease in the German power prices of 25 % would impact the fair value by +/- DKK 1,200 million�
Fair value measurement
Note 14
Unobservable input per commodity price
DKKm 2024 2023
German power prices (1,095) (1,269)
Dutch power prices 185 424
Nordic system power prices 205 415
Other power prices 37 133
Gas prices (153) (9)
To t a l (821) (306)
Valuation techniques and significant
unobservable inputs
We use a discounted cash flow model for the valuation
of power derivatives�
In order to minimise the use of subjective estimates
or modifications of parameters and calculation
models, it is our policy to determine fair value based
on the external information that most accurately
reflects the market values� We use pricing services
and benchmark services to increase the data quality�
Market values are determined by the Risk Management
function�
We use external price providers to ensure a high
quality of our price curves� Where prices are not
available, we model the prices based on our prior
experience and best estimates� Where relevant and
possible, we validate our price curves against
thirdparty data
We have entered into long-term power purchase
agreements exposing us to long term power prices�
The power prices are observable for up to five years
in the markets we trade� When power prices are no
longer observable in the market, we have estimated
the power price by extrapolating the last year with an
observable power price, taking expected inflation and
seasonality into account�
Fair value hierarchy of financial instruments
DKKm
2024 2023
Quoted prices
Observable
inputs
Non-observa-
ble inputs Tota l Quoted prices
Observable
inputs
Non-observa-
ble inputs Tota l
Commodity derivatives 3,002 1,133 1,291 5,426 4,381 7,561 1,910 13,852
Currency derivatives - 649 - 649 - 280 - 280
Total derivatives 3,002 1,782 1,291 6,075 4,381 7,841 1,910 14,132
Gas inventory 2,735 - - 2,735 1,510 - - 1,510
CO
2
allowances inventory 147 - - 147 213 - - 213
Total assets measured at fair value 2.882 - - 2,882 1,723 - - 1,723
Commodity derivatives 2,793 1,007 2,112 5,912 5,110 4,590 2,216 11,916
Currency derivatives - 718 - 718 - 302 - 302
Total liabilities measured at fair value 2,793 1,725 2,112 6,630 5,110 4,892 2,216 12,218
37
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Maturity analysis of financial liabilities
Note 15
Maturity analysis of financial liabilities 2024
DKKm
Carrying
amount
Payment
obligation 2025 2026 2027-2028 After 2028
Payables to group enterprises 2,552 2,552 2,552
Trade payables 4,344 4,344 4,344 - - -
Fair value of derivative financial instruments 6,630 7,615 5,480 911 764 460
Other payables 141 141 141 - - -
31 December 13,667 14,652 12,517 911 764 460
Maturity analysis of financial liabilities 2023
DKKm
Carrying
amount
Payment
obligation 2024 2025 2026-2027 After 2027
Payables to group enterprises 2,566 2,620 2,620 - - -
Trade payables 4,160 4,160 4,160 - - -
Fair value of derivative financial instruments 12,218 13,516 8,798 2,372 1,164 1,182
Other payables 204 204 204 - - -
31 December 19,148 20,500 15,782 2,372 1,164 1,182
38
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Deferred tax
Note 16
DKKm 2024 2023
Deferred tax at 1 January 154 (3,442)
Deferred tax for the year recognised in profit (loss) (568) 5,100
Adjustments in respect of prior years 83 (1,504)
Deferred tax at 31 December (331) 154
Deferred tax is recognised in the balance sheet as follows:
Deferred tax (assets) (331) -
Deferred tax (liability) - 154
Deferred tax at 31 December, net (331) 154
Deferred tax concerns:
Non-current assets 66 74
Non-current liabilities (311) (312)
Current assets (4) 2
Current liabilities (82) 511
Tax loss carry-forward - (121)
Deferred tax at 31 December (331) 154
Deferred tax
Deferred tax assets are expected to be utilised for
offsetting against the settlement of deferred tax
liabilities in companies included in joint taxation in
the Ørsted Group�
§ Accounting policies
Deferred tax assets are reviewed annually and
recognised only to the extent that it is probable
that they will be utilised�
Deferred tax is measured using the balance
sheet liability method in respect of all tem-
porary differences arising between the tax
bases of assets and liabilities and their carry-
ing amounts for financial reporting purposes�
However, deferred tax on temporary differ-
ences in respect of office properties, and other
items – apart from business combinations – is
not recognised where temporary differences
have arisen at the acquisition date without
having any effect on profit (loss) or taxable
income� When the tax base can be determined
applying different taxation rules, deferred tax
is measured on the basis of management’s
intended use of the asset or settlement of the
liability, respectively�
Deferred tax assets, including the tax base of
tax loss carryforwards, are recognised as other
non-current assets at the value at which they
are expected to be utilised either by elimination
against tax on future earnings or by set-off
against deferred tax liabilities within the same
legal tax entity and jurisdiction�
Deferred tax assets and deferred tax liabilities
are offset if the company has a legally enforce-
able right to set off current tax assets and
current tax liabilities or intends either to settle
on a net basis or to realise the asset and settle
the liability simultaneously� Adjustment of
deferred tax is made relating to eliminations
made of unrealised intragroup profits and
losses� Deferred tax is measured in accordance
with the tax rules and tax rates in the respective
countries that will apply under the legislation
enacted at the balance sheet date when the
deferred tax is expected to crystallise in the
form of current tax�
Changes in deferred tax as a result of changes
in tax rates are recognised in the income
statement�
Development in deferred tax assets and liabilities
DKKm
Deferred tax
balances at
1 January, net
Recognised in
profit (loss)
for the year
Other
movements
Deferred tax
balances at
31 December, net
2024
Intangible assets 13 (4) - 9
Property, plant, and equipment 41 16 - 57
Current assets 2 (6) - (4)
Decommissioning obligations (139) (4) - (143)
Other non-current liabilities (152) (16) - (168)
Current liabilities and derivatives 510 (592) - (82)
Tax loss carryforwards (121) 38 83 -
To t a l 154 (568) 83 (331)
2023
Intangible assets 5 8 - 13
Property, plant, and equipment 48 (7) - 41
Current assets 1 1 - 2
Decommissioning obligations (134) (5) - (139)
Other non-current liabilities (158) 6 - (152)
Current liabilities and derivatives (3,204) 3,714 - 510
Tax loss carryforwards - (121) - (121)
To t a l (3,442) 3,596 - 154
39
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
§ Accounting policies
Inventories
Inventories consist of gas in storage facilities
and in gas pipelines, acquired carbon emission
allowances, and renewable certificates�
Gas storage are managed on a fair value basis,
and therefore the gas in these storage facilities
is recognised at fair value less sales costs�
Changes in the fair value less costs to sell are
recognised in cost of sales in the period of the
change�
Purchased carbon emission allowances are
measured at fair value with value adjustments
recognised in the income statement�
Other inventories are measured at the lower of
cost using the first-in, first-out (FIFO) principle
or net realisable value� The net realisable value
of inventories is determined as the expected
selling price less any costs of completion
and costs incurred to execute the sale and is
determined taking into account marketability,
obsolescence, and development of expected
selling price�
Inventories
Note 17
Inventories
DKKm 2024 2023
Gas 2,914 2,165
Renewable certificates 1,277 1,183
Carbon emission allowances (purchased) 147 213
Other inventories 14 11
Total inventories 4,352 3,572
Inventories
The carrying amount of inventories
recognised at fair value was DKK 2,882 million
(2023: DKK1,723 million)�
40 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Trade receivables
Note 18
Trade receivables
DKKm 2024 2023
Trade receivables� not due 4,168 4,788
Trade receivables, 1-30 days overdue 425 11
Trade receivables, 31-90 days overdue 6 49
Trade receivables, more than 90 days overdue 117 43
Trade receivables, write-downs (3) (8)
Total Trade receivables 4,713 4,883
Expected credit losses on trade receivables are
assessed on the basis of due date and historical
experience� For receivables with a general credit
risk, a write-down of 0-1 % is carried out on initial
recognition�
§ Accounting policies
Receivables
We keep our receivables until maturity,
because they are included in a business model
where Ørsted Salg & Service A/S collect the
contractual cash flow�
Write-downs are carried out from initial
recognition of our receivables� Write-down
is calculated as the difference between the
carrying amount of the receivable and the net
present value of expected future cash flows
from the receivable� The discount rate used
is the effective interest rate for the individual
receivable or the individual portfolio�
We apply the simplified approach to the write-
down of trade receivables, which permits
calculating the write-downs as the full loss
during the entire term of the receivable�
Other receivables include positive fair values
of derivative financial instruments, etc�
Financial liabilities
Trade payables, payable income tax, and other
payables are measured at net realisable value�
Other payables include negative fair values of
derivative financial instruments, etc�
Financial liabilities whose values have been
effectively hedged are adjusted to fair value to
the extent of the hedged risk� The value adjust-
ment is recognised in the income statement as
financial income or financial expenses�
Write-downs trade receivables
DKKm 2024 2023
Write-downs at 1 January (8) (13)
Write-downs recognised in profit or loss during the year 3 (1)
Realised loss in the year 2 6
Write-downs at 31 December (3) (8)
Expected credit loss rates
DKKm
2024 2023
Not due
1-30 days
overdue
31-90 days
overdue
more than
90 days
overdue
Bankruptcy,
more than
90 days
overdue Tot a l Not due
1-30 days
overdue
31-90 days
overdue
more than
90 days
overdue
Bankruptcy,
more than
90 days
overdue Tot a l
B2B End-customers
Expected credit loss rate 0% 7% 10% 48% 80% 1% 7% 10% 48% 80%
Carrying amount 438 2 1 1 3 445 468 2 1 2 3 476
Expected credit losses 0.4 0.1 0.1 0.4 2.2 3.2 3.9 0.1 0.1 1.0 2.7 7.8
Trading and commercial customers
Expected credit loss rate 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Carrying amount 3,730 423 5 113 - 4,271 4,320 9 48 38 - 4,415
Expected credit losses - - - - - - - - - - - -
Total expected credit losses 0.4 0.1 0.1 0.4 2.2 3.2 3.9 0.1 0.1 1.0 2.7 7.8
41
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Other receivables and other payables
Note 19
Other receivables
DKKm 2024 2023
Collateral provided in connection with trading activities (receivable from banks) 340 599
Margin calls 202 54
Deposits 4 100
Renewables Obligation Certificates (ROC) factoring recycle value 33 12
Other receivables 13 14
Total other receivables 592 779
Margin calls are receivables from banks regarding market development in financial instruments used for trading�
Other payables
DKKm 2024 2023
VAT and other indirect taxes 63 69
Other payables 95 145
Total other payables 158 214
42
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Income tax
Note 20
DKKm 2024 2023
Income tax receivable (asset) - (2,035)
Income tax payable (liability) 1,444 -
Income tax at 31 December, net 1,444 (2,035)
Income tax receivable/payable at 1 January (2,035) (1,758)
Adjustments to current tax in respect of prior years (81) 1,506
Payments in respect of prior years 2,256 443
Current tax for the year 1,304 (2,224)
Payments in respect of the year - (2)
Income tax receivable/payable at 31 December 1,444 (2,035)
43
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Share capital
The company’s annual report forms part of the
consolidated financial statements of Ørsted A/S,
Fredericia, which owns the entire share capital�
Ørsted Salg & Service A/S´s capital is
DKK 2,610,000,000 (20233: 2,610 million) divided
into shares of DKK 1,000� All shares rank equally�
There are no restrictions on voting rights�
Dividend
The Board of Directors recommends dividend of
DKK 12 billion to be paid for the financial year
2024 (2023: DKK 10 billion)�
Capital management
Ørsted Salg & Service A/S’s liquidity and financing
risks are managed centrally by Ørsted A/S
in accordance with principles and delegated
authorities laid down by the Board of Directors
of Ørsted A/S in order to ensure that Ørsted Salg
& Service A/S has an adequate capital base and
adequate cash resources at all times� One of the
most important financial management tasks in the
Ørsted Group is to secure sufficient and flexible
financial resources in relation to the day-to-day
operations and the Ørsted Group’s investment
programme� For this purpose, internal management
objectives have been set for the required level of
financial resources, primarily considering factors
such as the investment programme, cash flows from
operating activities, and the debt maturity profile�
It is the Ørsted Group’s financing policy to concentrate
loans in the parent company in order to optimise the
loan portfolio on a consolidated basis�
Equity
Note 21
§ Accounting policies
Dividends
Proposed dividends are recognised as a liability
at the date of their adoption at the annual
general meeting (declaration date)� Up to
the declaration date, proposed dividends are
disclosed as a separate item in equity�
44
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Provisions
Note 22
Decommissioning obligations
Decommissioning obligations relates to expected
future costs for restoration and decommissioning of
gas infrastructure assets�
Onerous contracts
Onerous contracts comprise a contract for gas
storage capacity in Germany of DKK 127 million
(2023: DKK 146 million)�
Other provisions
Other provisions comprise primarily other contractual
obligations�
Provisions
DKKm
2024 2023
Decom-
missioning
obligations
Onerous
contracts
Other
provisions To ta l
Decom-
missioning
obligations
Onerous
contracts
Other
provisions To ta l
Provisions at 1 January 628 146 420 1,194 607 154 421 1,182
Used during the year - (24) - (24) - (13) - (13)
Provisions reversed
during the year - - - - - - (2) (2)
Provisions made during
the year - - 9 9 - - 1 1
Interest element of
obligations 24 5 - 29 21 5 - 26
Change in other
abandonment factors (5) - - (5) - - - -
Total provisions 647 127 429 1,203 628 146 420 1,194
Falling due as follows:
In 0-1 year - 97 1 98 - 20 1 21
In 1-5 years - 30 428 458 - 126 419 545
After 5 years 647 - - 647 628 - - 628
§ Accounting policies
Provisions are recognised when the following
criteria are fulfilled:
· We have a legal or constructive obligation
as a result of an earlier event�
· The settlement of the obligation is expected to
result in an outflow of resources�
· The obligation can be measured reliably�
For onerous contracts, a provision is made when
the expected income to be derived from a contract
is lower than the unavoidable cost of meeting our
obligations under the contract�
Decommissioning obligations are measured at
the present value of the future liability in respect
of decommissioning as expected at the balance
sheet date� The present value of the provision is
recognised as part of the cost of property, plant
and equipment and depreciated together with
the associated asset� The addition of interest on
provisions is recognised in the income statement
under financial expenses�
Key accounting estimate
In the course of Ørsted Salg & Service A/S
operations, a number of commercial contracts
have been entered into with fixed terms of contract
that may result in the contracts becoming onerous
depending on market developments, etc�, and the
obligations incurred by the Ørsted Salg & Service
A/S as a result of these contracts may also be
subject to uncertainty� The judgements concerning
these complex contracts and their future effects
are subject to significant uncertainties�
Decommissioning obligations comprise estimated
expenses related to decommissioning and disposal
of production assets� Estimates of the obligations
are based on expectations of the future cost level,
timing of decommissioning and the structural risk-
free interest rate� The expectation for calculating
the provision may depend on future events which
are uncertain by nature�
The estimated obligations have been discounted
to present value using either the structural risk-
free interest rate or the incremental borrowing
rate� The structural risk-free rate is used for
decommissioning liabilities and onerous contracts�
It is calculated as the sum of real return (Gross
Domestic Product growth rate), inflation, and
inflation premium for other risks�
45
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Contract liabilities
Note 23
Change in working capital
Note 24
Contract balances
DKKm 2024 2023
Contract liabilities
Non-current contract liabilities 3 4
Current contract liabilities 100 113
Total contract liabilities 103 117
DKKm 2024 2023
Change in inventories (780) 1,878
Change in contract assets and liabilities (14) (8)
Change in trade receivables 592 6,940
Change in other receivables 187 2,945
Change in trade payables 171 (5,817)
Change in other payables, etc� (56) (41)
Change in working capital 100 5,897
Contract liabilities primarily relate to prepayments
of gas and power contracts�
§ Accounting policies
We recognise a contract liability when the
invoicing on account and expected losses
exceed the transaction price of the goods or
services transferred to our customer�
46
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Financial risks and risk management
Note 25
Financial risks
Ørsted Salg & Service A/S is exposed to several differ-
ent financial risks, including fluctuations in commodity
prices, exchange rates, credit risks, and interest rates�
The management of these risks is an important focus
area in the company�
Risk management is aimed at identifying the various
risk areas and determining a strategy for managing
them� A special Risk Committee has been appointed
who is responsible for monitoring the Ørsted Group’s
risk management and risk control relating to market
and credit risks� A centralised group risk management
function has been set up in Ørsted to support the Risk
Committee�
Various strategies have been put in place to man-
age the risks and align the risk profile� The risk profile
is managed through the conclusion of financial and
physical contracts for commodities, and currencies�
The operating profit may fluctuate considerably from
year to year because of price developments�
Managing short-term market risks
Our focus is on actively managing the market risks for
the first five years� We primarily hedge future prices
using derivatives to reduce cash flow fluctuations
after tax�
Minimum hedging levels are currently deter mined by
the Ørsted group Board of Directors� In the first year,
price risks are almost fully hedged� The degree of
hedging declines in subsequent years due to:
· reduced certainty about long-term production
volumes
· increasing hedging costs in the medium to long
term, both spread costs and costs of collateral
· adverse impacts from collateral, potentially tying
up large amounts of capital if hedging contracts
become unfavourable�
Market trading
When the Ørsted Group’s desired hedging level has
been determined, the exposures are transferred to the
market trading function, which is part of Ørsted Salg &
Service A/S� Market Trading is responsible for execut-
ing the physical and financial transactions in the mar-
ket� It is not always possible to hedge the transferred
price risks in full� Therefore, Ørsted Salg & Service A/S
has some remaining exposure resulting from these
activities�
The Salg & Service A/S also balances the physical
energy volumes in the market and, to a lesser extent,
engages in active position taking to ensure an ongoing
market presence and thus gain more detailed mar-
ket insights� Furthermore, Ørsted Salg & Service A/S
has assumed the role of market maker in the Danish
power market, which entails further market risks�
Market risk policy
Our most significant market risks relate to:
· energy and commodity prices
· production variability
· foreign exchange rates
· interest rates and inflation�
The overall objective of our financial risk manage-
ment is to:
· increase the predictability of our short-term
income and construction costs
· protect our current and future investment
capacity by stabilising key rating metrics like
FFO/NIBD
· protect the long-term real value of the
shareholders’ investment in Ørsted
The governance for managing market, credit,
and liquidity risks are based on the three lines of
defence model:
The first line of defence is responsible for all risks we
take on through our business, hedging,
and trading activities�
The second line of defence is Risk Management,
which oversees the activities of the first line,
challenges, monitors, and reports risk exposures,
and mandate compliance�
The third line of defence is Internal Audit�
Key accounting estimate
Valuation of long-term power purchase
agreements
When we measure our power purchase
agreements at fair value, we use estimates
of non-observable prices such as:
· production forecasts – intermittency
(expected profiled production versus
constant (flat) production)
· forecasted long-term power prices and
exchange rates
· forecasted inflation expectations
The development in market values is monitored
on a continuing basis and reported to the Group
Executive Team�
Hedge accounting
Hedge effectiveness is measured using
forecasted production as well as estimates
regarding energy prices, intermittency, interest,
currency and inflation� For periods where we
are close to fully hedged, volume overhedging
is possible if the forecasted production does
not materialize which will lead to recognition
of ineffectiveness�
47
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Key accounting judgement
Valuation of long-term power purchase
agreements
We measure our power purchase agreements
at fair value, but they cannot always be meas-
ured on quoted prices in active markets due
to the long duration of the contracts� We use
elements of judgements determining models to
measure the fair value and we aim to limit the
use of subjective estimates and base the fair
values on external information including exter-
nal pricing and benchmark services�
Hedge accounting
Judgements are used to consider whether
forecasted transactions are highly probable
exposures as hedged item in a hedge relation-
ship, eg� expected production from wind farms,
and judgment is applied in whether the hedge
instruments applied in the hedge relationships
identified are effective�
Managing long-term market risks
Beyond the period where we actively hedge, our market
risk picture is determined by our portfolio of assets and
long-term contracts� We actively manage the long-
term market risk through the investment decisions we
take and contracts we enter into� Our power exposure
is partly mitigated through long-term corporate
power purchase agreements (CPPAs), and we use debt
to manage our long-term currency, interest rate, and
inflation risks�
Commodity price risks
Our price risk arise from the purchase and sale of power
and gas� The price risks associated with the purchase
and sale of gas result from differences in the indexing of
sales and purchase prices�
The price risks associated with power purchases and
sales are given by the difference between the purchase
and sales prices� The price risks primarily relate to timing
differences between purchases, sales, and the related
hedges, and is therefore considered to be limited�
Currency risks
Currency risks arise primarily from:
· Purchase and sale of power and gas�
· Energy trading, which is typically priced
in currencies other than DKK�
Currency exposure is hedged using forward exchange
contracts, swaps, and options�
Interest rate risks
Interest rate risks primarily relate to loan portfolio,
cash, and financial hedging� These risks are managed
in relation to the Ørsted Salg & Service A/S´s net
financing requirement and capital structure�
Interest rate risk is measured on a net basis, and both
debt and any placing of excess cash are included�
Interest rate risk is adjusted through the interest terms
attached to the Group’s loans�
Credit risks
Credit risks arise primarily from transacting in power
and gas – both wholesale, physical, and financial
transactions, including placing surplus cash�
We conclude contracts with customers and suppliers
on the physical delivery of energy products and
hedging contracts with other energy companies,
specialised trading houses and international banks�
Physical contracts with a term of more than one year
are normal, and gas purchase contracts can have
terms of more than five years� All such contracts
involve a risk of loss in the event of a counterparty
failing to perform its obligations� Such risks are
quantified and managed as credit risks and are a
significant focus area in Ørsted Salg & Service A/S�
Credit risk is managed based on internal credit limits
for counterparties and structured monitoring of the
actual exposure� Credit limits are established based
on an assessment of the counterparty’s credit rating�
If the counterparty has an external credit rating, for
example from Moody’s or Standard & Poor’s, this is an
important factor in determining the counterparty’s
credit rating�
Credit risks are coordinated in relation to all business
activities, so that Ørsted Salg & Service A/S does
not assume inappropriately large exposures to
individual counterparties� With a view to reducing its
credit exposure, the company endeavours, as far as
possible, to clear transactions via a clearing centre,
such as Nord Pool, and uses formalised framework
agreements, such as ISDA and EFET agreements and
master netting agreements� To this should be added
the limited use of security, such as bank guarantees�
As part of its risk management, the Group monitors its
credit exposure in relation to all trading counterparties
daily as well as monthly or quarterly in the case
of other counterparties� Historically, losses due to
default by counterparties have been small�
Financing and capital resources
One of the main financial management responsibilities
is to secure sufficient, flexible financial resources for the
day-to-day operations and for the implementation of
Ørsted Salg & Service’s strategy, considering the Ørsted
Group’s rating� To this end, internal management
objectives have been established for the required level
Financial risks and risk management
Note 25 – Continued
48 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
of financial resources, taking into account factors such
as investment programme, operating cash flow, and
debt maturity profile�
Sensitivity analysis
The sensitivity analysis in the tabel shows the effect of
market value changes assuming a relative price change
at 31 December� The illustrated effect on profit (loss)
comprises financial instruments that remained open at
the balance sheet date and have an effect on profits
in the financial year in question� Besides derivative
financial instruments on commodities and currency,
financial instruments in this context include receivables
and payables in foreign currencies�
It should be noted that the illustrated sensitivities
only comprise Ørsted Salg & Service A/S’s financial
instruments and therefore exclude the effect from
contracts concluded under which physical delivery
of the underlying assets is made, as these are not
recognised as financial instruments in accordance
with IFRS 9� Thus, the sensitivity only comprises the
derivative financial instruments and not the physical
contracts they hedge�
Estimated effect on profit (loss)
The illustrated effect on profit (loss) is the effect
from financial instruments that remained open
at the balance sheet date and have an effect on
profit (loss) in the financial year in question� Besides
derivative financial instruments on commodities
and currencies, financial instruments in this context
include receivables and payables in foreign currencies�
It should be noted that the shown sensitivities only
comprise the company’s financial instruments and
consequently are not representative of the company’s
total risk profile in relation to commodity prices and
exchange rates� Furthermore, the sensitivities only
reflect the effect of changes at the balance sheet
date and not for an entire accounting period�
Estimated effect on equity
The illustrated effect on equity is the effect from
financial instruments that remained open at the
balance sheet date and affect equity at the balance
sheet date, excluding instruments that affect the
income statement� Here, financial instruments include
derivative financial instruments on commodities
and currency, which are accounted for as hedges of
cash flows�
Financial risks and risk management
Note 25 – Continued
Sensitivity Analysis
Risks
DKKm Price change
Estimated effect on profit (loss)
31 December
Estimated effect on equity
31 December
2024 2023 2024 2023
Oil +25 % (112) 27 - 2
-25 % 112 (18) - (2)
Gas +25 % (431) (375) - (106)
-25 % 431 387 - 106
Power +25 % (3,020) (1,340) 387 (836)
-25 % 2,987 1,324 (387) 836
Carbon emission allowances +25 % - (24) - -
-25 % - 25 - -
USD +10 % (31) (67) 11 -
-10 % 31 67 (11) -
GBP +10 % (342) (305) 145 142
-10 % 342 305 (145) (142)
EUR +1 % 33 70 3 (3)
-1 % (33) (70) (3) 3
Credit quality of counterparties
DKKm 2024 2023
AA 114 (22)
A 1,001 293
BBB
1
24,234 23,455
Other
2
7,301 4,977
Total credit exposure 32,650 28,703
1
DKK 20,794 million (2023: DKK 22,481 million) is related to Ørsted A/S and the Inhouse Clearing Bank�
2
DKK 860 million (2023: DKK 1,670 million) is related to group companies which are not individually rated�
49
NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Contingent liabilities and other liabilities
Note 26
At year-end, Ørsted Salg & Services A/S had the
following contingent and other liabilities:
Indemnities
The company is taxed jointly with other companies
in the Ørsted Group� The companies have unlimited
as well as joint and several liability together with the
other taxed companies for Danish income taxes and
withholding taxes on dividends, interest, and royalties
within the jointly taxed companies�
Ørsted A/S is the management company� Reference is
made to the Ørsted Group’s annual report 2024�
Liability to pay compensation (absolute liability)
According to legislation, Ørsted Salg & Service
A/S is liable in tort for any damage caused by the
companies’ gas activities even where there is no proof
of negligence (absolute liability)� The usual insurance
has been taken out to cover any such claims�
Litigation
The company is party to a number of litigation
proceedings and legal disputes that are not estimated
to have any material effect on the financial position,
neither individually nor collectively�
The outcome of litigation proceedings and legal
disputes is based on the expeceted legal assessment,
which is updated quarterly� The expectations may
depend on future events which are uncertain by nature�
50 NotesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Auditor’s fees
Note 27
PwC is Ørsted’s auditor appointed by the general
meeting� PwC audits the consolidated financial
statements of Ørsted and the subsidiaries’ financial
statements in all the countries where we are
represented�
DKKm 2024 2023
Statutory audit (2) (2)
Total fees to PwC (2) (2)
52
Other notesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Related-party transactions
Note 28
DKKm
Ørsted A/S Subsidiaries Group enterprises Joint ventures and associates
2024 2023 2024 2023 2024 2023 2024 2023
Sale of goods and services 4 5 403 435 1,337 4,854 - -
Purchase of goods and services - - (13) (12) (14,593) (17,731) 148 (191)
Interest, net 813 618 - - - - - -
Dividends (10,000) - - - - - - -
Receivables 391 1 46 328 814 1,342 - -
Ørsted Group´s internal bank receivables
1
20,403 22,480 - - - - - -
Payables 112 116 52 1 2,388 2,448 20 25
Financial derivatives, net (679) (241) (10) 36 2,170 2,762 - -
1
Ørsted Salg & Service have the right to require the receivable from Ørsted Group´s internal bank settled with short notice�
Related parties with a controlling interest is Ørsted A/S
and the Danish state , represented by the Danish Ministry
of Finance, which has a majority holding in the parent
company Ørsted A/S�
Related parties with significant influence include the
companies’ boards of directors, executive boards,
executive employees, and members of their families�
Related parties also comprise companies in which
the persons referred to above have significant
influence and group enterprises and associates in
the Ørsted Group�
As part of its ordinary operations, Ørsted Salg &
Service A/S sells to and buys its products from related
parties on market terms�
The company was involved in the following trans-
actions with related parties in the financial
year under review�
Ørsted Salg & Service A/S uses the exception set out
in IAS 24�25 concerning entities in which the state is a
related party, and transactions with state enterprises
are therefore not disclosed�
Specific transactions
The company has had transactions with group
enterprises as part of its responsibility for the trading
function for the Ørsted Group’s companies in relation
to commodity instruments, etc� Furthermore, balances
with group enterprises have been established as part
of the normal financing of the Group’s activities�
Remuneration of the Board of Directors and the
Executive Board is disclosed in note 4 ‘Employee costs’
and note 5 ‘Share-based payment’� All employees are
legally employed by other Ørsted group companies,
but the employees spend full-working time in Ørsted
Salg & Service A/S why employee costs are recharged
to Ørsted Salg & Service A/S�
53 Other notesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Calculation of financial ratios
Note 29
Unless otherwise stated, financial ratios have been
calculated in accordance with ‘Recommendations
& Financial Ratios’ published by the Danish Society
of Financial Analysts�
Financial ratios have been calculated as follows:
EBITDA margin Earnings before interest, tax, depreciation, and amortisation
Revenue
EBIT margin (profit margin)
Earnings before interest and tax
Revenue
Net interest-bearing debt Interest-bearing liabilities − interest-bearing assets
1
Capital employed Equity plus/minus gains/losses relating to hedging instruments on equity
+ net interest-bearing debt
2
1
Bank overdrafts that are included in the statement of cash flows as cash and cash equivalents
are included as negative interest-bearing assets�
2
The definition deviates from ‘Recommendations & Financial Ratios 2015’ published by the
Danish Society of Financial Analysts�
54
Other notesØRSTED SALG & SERVICE A/S ANNUAL REPORT 2024
Ørsted Salg & Service A/S
Kraftværksvej 53
DK-7000 Fredericia
Tel�: +45 99 55 11 11
CVR no� 27210538
orsted�com
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e-Types with The Agency
Publication:
June 2025