Untitled

Interim financial report

First quarter 2023

2/33

Interim financial report

First quarter 2023

Management’s review

Overview

Contents

Earnings call

In connection with the presentation of the interim

financial report, an earnings call for investors and

analysts will be held on Wednesday, 3 May 2023

at 14:00 CEST:

Denmark: +45 78 76 84 90

International: +44 203 769 6819

USA: +1 646 787 0157

PIN: 994005

The earnings call can be followed live here:

https://orsted-events.eventcdn.net/events/interim

-report-Q1-2023

Presentation slides will be available prior to the

earnings call and can be downloaded here:

https://orsted.com/financial-reports

Further information

Group Communication

Martin Barlebo

Tel.: +45 99 55 95 52

Investor Relations

Rasmus Keglberg Hærvig

Tel.: +45 99 55 90 95

ESG performance report, Q1 2023

CEO review ........................................................................................................... 3

At a glance ............................................................................................................ 6

Outlook ................................................................................................................... 7

Results Q1 .............................................................................................................. 8

Business units’ Q1 results ............................................................................. 11

Performance highlights ................................................................................ 14

Quarterly overview ......................................................................................... 15

Consolidated statements of income .................................................. 17

Consolidated balance sheet .................................................................... 18

Consolidated statement of shareholders’ equity ....................... 19

Consolidated statement of cash flows ............................................. 20

Notes

1. Basis of reporting .......................................................................................... 21

2. Segment information ................................................................................. 22

3. Revenue .............................................................................................................. 24

4. Other operating income and expenses ......................................... 25

5. Financial income and expenses .......................................................... 25

6. Gross and net investments .................................................................... 26

7. Reserves ............................................................................................................. 26

8. Tax on profit (loss) for the period ...................................................... 27

9. Markets risks .................................................................................................... 28

10. Fair value measurement ....................................................................... 29

11. Interest-bearing net debt and FFO .................................................. 30

12. Financial resources .................................................................................... 32

Management’s statement

Statement by the Executive Board and the Board of Direc-

tors .............................................................................................................................. 33

Financial statements

Consolidated financial statements

3/33

Management’s review

Interim financial report First quarter 2023

our gross investments guidance of DKK 50-54

billion.

Construction and operational progress

At Greater Changhua 1 and 2a, we have suc-

cessfully installed all 111 jacket foundations

and 97 wind turbines, of which 25 are now fully

commissioned. The cable and wind turbine

scopes are progressing as planned and we still

expect to fully commission the wind farm in H2

2023.

At South Fork in the US, we have commenced

offshore installation and the 130 MW wind

farm is expected to be commissioned in H2 this

year – according to the original plan.

The construction of our Gode Wind 3 and

Borkum Riffgrund 3 offshore wind farms is

progressing according to plan, and we expect

to commission the wind farms in 2024 and

2025, respectively.

In our Onshore business, we are constructing

the combined solar and storage facility Eleven

Mile, the solar farm Mockingbird, and the

onshore wind farm Sunflower, all of which are

progressing according to plan. We are current-

ly awaiting delivery of the rest of the solar

panels for the solar part of Helena Energy

Center and expect the project to be fully

commissioned in 2024.

Green share of heat and power generation

amounted to 89 %, a decrease of 3 percentage

Financials

Operating profit (EBITDA) for the first quarter

was in line with our expectations and amount-

ed to DKK 6.9 billion, DKK 2.5 billion lower

than in Q1 2022. EBITDA excl. new partnerships

was DKK 0.9 billion lower than in Q1 2022.

We are very pleased with the Q1 2023 results,

where our offshore sites earnings are back on

track as the key EBITDA driver.

Earnings from our wind and solar assets in

operation amounted to DKK 6.9 billion, which

was an increase of DKK 2.2 billion compared to

the same period last year. The increase was

driven by ramp-up of generation from Hornsea

2 and Greater Changhua 1 and 2a, and as the

negative impact from hedges of DKK 1.6 billion

in Q1 2022 was not repeated.

Earnings from our CHP plants decreased by

DKK 1.0 billion due to lower generation and

significantly lower prices than Q1 2022. Fur-

thermore, earnings from our gas activities

decreased by DKK 1.0 billion. The lower earn-

ings were expected for both activities given

the deteriorating power condensing spreads

and lower volatility in the gas price compared

to Q1 2022, when the Russian invasion of

Ukraine and concerns over security of gas

supply caused high volatility.

We maintain our full-year EBITDA guidance of

DKK 20-23 billion excluding earnings from new

partnerships during the year. We also maintain

CEO’s review

Strong start to the year with all-time high earnings from offshore sites

and final investment decision on Greater Changhua 2b and 4

Financials

Operating profit (EBITDA) for the first quar-

ter was in line with our expectations and

amounted to DKK 6.9 billion.

Earnings from our wind and solar assets in

operation amounted to DKK 6.9 billion,

which was an increase of DKK 2.2 billion

compared to the same period last year.

We maintain our full-year EBITDA guidance

of DKK 20-23 billion.

Construction and operational progress

At Greater Changhua 1 and 2a, the cable

and turbine scopes are progressing as

planned, and we still expect to fully commis-

sion the wind farm in H2 2023.

The construction of our other offshore wind

farms South Fork in the US, and Borkum

Riffgrund 3 and Gode Wind 3 in Germany,

are all progressing according to plan.

Our green share of heat and power genera-

tion amounted to 89 %.

Business development

We took FID on our 920 MW Greater Chang-

hua 2b and 4 offshore wind farms in Taiwan.

In Scotland, Salamander, a joint venture

between Simply Blue Group, Subsea 7, and

Ørsted won a floating wind lease of 100

MW.

Together with our partner Eversource, we

submitted a joint proposal in response to

Rhode Island’s offshore wind solicitation,

where we were the only bidder.

We submitted a bid to the Danish Energy

Agency (DEA) for our carbon capture and

storage project Kalundborg Hub.

We acquired the 160 MW Irish solar project

Garrenleen.

We signed a 150 MW power purchase agree-

ment (PPA) with Google to purchase renew-

able energy generated by the wind part of

Helena Energy Center in the US.

Highlights 

Management’s review

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Interim financial report

First quarter 2023

2029. It will provide green jobs and support

net-positive biodiversity in southern Sweden.

Together with our partner Eversource, we

submitted a joint proposal in response to

Rhode Island’s offshore wind solicitation. The

proposed 884 MW wind farm Revolution Wind

2 will deliver clean, reliable renewable power

for more than 500,000 Rhode Island homes.

Together with Ørsted and Eversource’s Revo-

lution Wind 1, Revolution Wind 2 would bring

the state close to achieving its goal of 100-

percent clean power at the latest in 2033.

We signed a memorandum of understanding

(MoU) with the infrastructure division of Accio-

na to explore options for floating offshore

wind foundations in Europe.

Onshore

We acquired the early-stage Irish solar devel-

opment project Garreenleen from renewable

energy developer Terra Solar. The 160 MW

solar project will bring our Irish portfolio to a

total capacity of 576 MW.

We signed a 150 MW power purchase agree-

ment (PPA) with Google to purchase renewa-

ble energy generated by the wind part of

Helena Energy Center in the US. This marks the

first agreement between Google and Ørsted in

the US, and the second agreement globally.

Bioenergy & Other

We submitted a bid to the Danish Energy

Agency (DEA) for our carbon capture and

storage project Kalundborg Hub. If we are

successful in winning the bid, the project will

capture approx. 400,000 tonnes of biogenic

annually from our Asnæs and Avedøre

points compared to the same period last year.

The main driver for the lower green share in Q1

2023 was the temporary switch from biomass

to coal at Studstrup Power Station after a fire

in the wood pellet silo in autumn last year,

partly offset by higher wind and solar PV

generation. From April, we have partly been

able to commence the use of biomass at

Studstrup again, and we expect the green

share to increase towards year-end and to end

around the same level as last year.

Business development

Since the publication of our annual report, we

have reached significant milestones in our

ambitious green strategy.

Offshore

In April, we took FID on our 920 MW Greater

Changhua 2b and 4 offshore wind farms in

Taiwan. We expect to start onshore construc-

tion this year with commissioning by the end of

2025. Greater Changhua 2b and 4 have a

robust business case which will create long-

term value for Ørsted.

In March, Salamander, a joint venture between

Simply Blue Group, Subsea 7, and Ørsted won a

Scottish floating wind lease. The 100 MW

Salamander floating offshore wind project,

located 35 km off Peterhead, is designed to

provide Scotland and its supply chain with an

early opportunity to deliver floating offshore

wind ahead of the larger-scale ScotWind build-

out.

Our Skåne Offshore Wind Farm project in

Sweden has received the Natura 2000 environ-

mental permit. If built, the 1.5 GW wind farm

will be one of Sweden’s first commercial-scale

offshore wind farms and can be operational by

In April, we took FID on our 920 MW Greater Changhua 2b

and 4 offshore wind farms in Taiwan. We expect to start

onshore construction this year with commissioning by the

end of 2025. Greater Changhua 2b and 4 have a robust and

strong business case which will create long-term value for

Ørsted, and clearly shows that we are ready to build and

operate large-scale offshore wind projects in Asia Pacific

”

CHP plants. The project contributes signifi-

cantly to realising the politically decided

Danish climate targets for 2025 and 2030, and

it maintains and grows our CHP plants’ value

contribution as we integrate and optimise

value streams. Furthermore, it serves as an

enabler for our future P2X projects through

the establishment of core capabilities in

capturing carbon. We expect the outcome of

the bid in May. The project is expected to be

operational by the end of 2025 dependent on

winning the bid.

Commitment to the green agenda around the

world

We are proud to announce that Ørsted, as a

founding partner, has become the first energy

company to join the Global Offshore Wind

Alliance (GOWA) to support a faster deploy-

ment of offshore wind and create a global

community of action. GOWA is a new global

organisation that brings governments, the

private sector, international organisations, and

other stakeholders together to accelerate the

deployment of offshore wind power.

In March, the Intergovernmental Panel on

Climate Change (IPPC) report underlined that

the window for staying below 1.5

C is closing

rapidly. The report also highlights renewable

energy as by far the most important mitiga-

tion solution, and how wind and solar are the

cheapest.

Through our supply chain decarbonisation

programme, we are engaging our suppliers to

increase their use of renewable energy and

bring down emissions. In March, we were

happy to be recognised by the Carbon Disclo-

sure Project (CDP) as a leader on supplier

engagement on climate change.

We were pleased to see the proposal from the

European Commission on electricity market

design, which ensures a pragmatic evolution of

Management’s review

5/33

Interim financial report

First quarter 2023

the European electricity market and restores

confidence in an efficient, well-integrated

market. The Net-Zero Industry Act proposal

was another positive investment signal to the

market with the focus on a renewable, fossil-

free power supply. Now, it is crucial to see the

proposal being carried through to support

building wind at scale with clear investment

signals based on faster permitting, supply

chain action, incentives for the offtake of e-

fuels, and forward-looking infrastructure build

-out. There is also a need to accelerate the

approval processes, which today continue to

represent a major bottleneck within our

industry.

It is critical that the industry and govern-

ments collaborate to ensure that projects,

and thus the green transformation, remain

investable.

As Ørsted is the world’s undisputed largest

and most experienced offshore wind develop-

er, we feel a special obligation to help scale

our industry. And I am a realistic optimist that

we will find ways to make that happen!

The global renewable energy markets are

expected to grow rapidly over the next

decade in all the technological areas where

we are present, with offshore wind being the

fastest growing renewable technology. It is

very positive to see high ambitions around

the world with the number and size of gov-

ernment solicitations increasing significantly.

Led by examples like the Danish Govern-

ments latest plan to launch a solicitation of 9

GW of offshore wind capacity this year. We

are convinced that opportunities for value-

creating offshore growth is available for

experienced developers like ourselves.

In April, heads of state and climate ministers

from nine Northern European countries as

well as 100+ CEOs from companies critical to

the offshore wind industry, formed an ambi-

tion for offshore wind build-out in the North

Sea of 130 GW by 2030 and 300 GW by

2050, the ‘Oostende agreement’. The agree-

ment has the potential to make the North

Sea the biggest green power plant in the

world. But the path towards making these

ambitions a reality remains challenging and

require a collaboration between industry,

organisations and governments that has

never been seen before.

”

Mads Nipper

Group President & CEO

Through our supply chain decarbonisation programme, we

are engaging our suppliers to increase their use of renewa-

ble energy to bring down emissions. In March, we were hap-

py to be recognised by the Carbon Disclosure Project (CDP)

as a leader on supplier engagement on climate change

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Interim financial report

First quarter 2023

At a glance

Key figures Q1 2023

Revenue DKK 29.4 bn

Gross investments DKK 8.8 bn

Capital employed DKK 138.1 bn

TRIR

2.7

ROCE, last 12 months 13.8 %

Ørsted

Number of employees: 8,422

EBITDA, DKKbn

6.9

80 %

8 %

12%

Offshore

Onshore Bioenergy & Other

Green share of energy generation, %

2022 2023

Offshore

Number of employees: 4,453

EBITDA, DKKbn

Availability, %

2022 2023

11.3

10.9

11.0

2022 2023 Norm

4.3

5.4

1.6

2022 2023

5.9

5.4

Wind speed, m/s

Onshore

Number of employees: 230

EBITDA, DKKbn

Availability, wind, %

2022 2023

7.9

8.1

7.8

2022 2023 Norm

0.8

2022 2023

Wind speed, m/s

Bioenergy & Other

Number of employees: 1,002

EBITDA, DKKbn

2022 2023

2.5

0.5

2022 2023

Green share of energy generation, %

Degree days, number

1,141

1,157

1,288

2022 2023 Norm

New partnerships

1 Includes EBITDA from other activities/eliminations

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Management’s review

Interim financial report First quarter 2023

EBITDA

EBITDA in 2023, excluding new partnership

agreements, is unchanged and still expected

to be DKK 20-23 billion. This guidance is based

on an assumption of normal wind speeds in the

remainder of the year. As always, the guidance

is subject to a number of uncertainties (see box

below).

Gross investments

Gross investments in 2023 are expected to

amount to DKK 50-54 billion, which is un-

changed relative to the guidance in the annual

report.

Our EBITDA guidance for the Group is the prevailing guidance, whereas the directional earnings development

per business unit serves as a means to support this. Higher/lower indicates the direction of the business unit's

earnings relative to the results for 2022.

Outlook 2023, DKK billion

2022

realised

Guidance

1 Feb 2023

Guidance

3 May 2023

EBITDA, without new partnerships 21.1

20-23

Offshore, without new partnerships 8.6

Significantly

higher

Significantly

higher

Onshore 3.6 In line In line

Bioenergy & Other 8.6

Significantly

lower

Significantly

lower

Gross investments 37.4 50-54 50-54

Outlook 2023

Forward-looking statements

The interim financial report contains forward-looking statements which include projections

of our short- and long-term financial performance and targets as well as our financial poli-

cies. These statements are by nature uncertain and associated with risk. Many factors may

cause the actual development to differ materially from our expectations. These factors

include, but are not limited to, changes in temperature, wind conditions, wake and blockage

effects, precipitation levels, the development in power, coal, carbon, gas, oil, currency, infla-

tion rates, and interest rate markets, the ability to uphold hedge accounting, changes in

legislation, regulations, or standards, the renegotiation of contracts, changes in the compet-

itive environment in our markets, reliability of supply, and market volatility and disruptions

from geopolitical tensions. Read more about the risks in the annual report for 2022 in the

chapter ‘Our risks and risk management’ and in note 6.

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Management’s review

Interim financial report First quarter 2023

Financial results

Revenue

Power generation from offshore and onshore

assets increased by 16 % and totalled 8.9 TWh

in Q1 2023. The increase was due to ramp-up

of generation from Hornsea 2 and Greater

Changhua 1 and 2a, our onshore assets Ford

Ridge, the wind part of Helena Energy Center,

and Old 300, and the acquisition of Ostwind in

Q4 2022.

Heat generation decreased by 2 %, whereas

thermal power generation decreased by 21 %,

mainly due to less attractive spreads for pow-

er condensing generation.

Our green share of generation amounted to

89 %, a decrease of 3 percentage points com-

pared to the same period last year.

Revenue amounted to DKK 29.4 billion. The

decrease of 13 % relative to Q1 2022 was pri-

marily due to the significantly lower power

prices across all markets as well as lower gas

volumes sold and prices.

EBITDA

Operating profit (EBITDA) for the first quarter

was in line with our expectations and amount-

ed to DKK 6.9 billion, DKK 2.5 billion lower

than in Q1 2022, which was positively impact-

ed by a gain from the 50 % farm-down of

Borkum Riffgrund 3 (new partnerships) of DKK

1.6 billion. Thus, EBITDA excl. new partnerships

was DKK 0.9 billion lower than Q1 2022.

Earnings from Offshore sites amounted to DKK

5.9 billion, an increase of DKK 2.2 billion com-

pared to last year.

‘Wind impact’ was negative with DKK 0.3 bil-

lion due to lower wind speeds than in Q1 2022

(marginally lower than a normal wind year).

Impact from ‘hedges’ was positive with DKK 2.1

billion in Q1 2023 compared to Q1 2022. This

was mainly due to negative effects from over-

hedging and ineffective hedges in Q1 2022 due

to delayed ramp-up at Hornsea 2 combined

with very high power prices (DKK -1.6 billion),

which was not repeated in Q1 2023. Further-

more, Q1 2023 benefitted from a partial rever-

sal of the temporary negative impact in 2022

from hedges not fulfilling the requirements for

hedge accounting under IFRS 9 (DKK 0.5 bil-

lion).

Earnings from ‘Sites, other’ increased by DKK

0.3 billion, mainly due to ramp-up of genera-

tion from Hornsea 2 and Greater Changhua 1

and 2a in Q1 2023. This was partly offset by a

EBITDA excluding new partnerships, DKKbn

Results Q1

Q1 2023 Q1 2022 %

Revenue

29,369 33,762 (13 %)

EBITDA

6,910 9,429 (27 %)

- New partnerships

- 1,610 n.a.

- EBITDA excl new partnerships

6,910 7,819 (12 %)

Depreciation and amortisation

(2,438) (2,128) 15 %

Operating profit (loss) (EBIT)

4,472 7,301 (39 %)

Gain (loss) on divestment of enterprises

169 108 56 %

Financial items, net

(1,519) (848) 79 %

Profit (loss) before tax

3,135 6,561 (52 %)

Tax

67 (860) n.a.

Tax rate

(2%) 13% (15 %p)

Profit (loss) for the period

3,202 5,701 (44 %)

negative impact on our merchant exposure

due to declining prices after having lowered

our hedge ratios for Q1 2023 at a time when

prices were higher than the realised levels in

the quarter.

EBITDA from partnerships amounted to DKK

0.0 billion in Q1 2023. In Q1 2022, we had posi-

tive earnings from work for partners at Great-

er Changhua 1 and from a reversal of DKK 0.5

billion of the DKK 0.8 billion warranty provi-

sion related to cable protection system issues

at some of our offshore wind farms towards

our partners, recognised in 2021.

EBITDA from our Onshore business was in line

with Q1 2022. An increase in generation of

17 % due to ramp-up of generation from new

assets was partly offset by lower prices, es-

pecially in I&UK where a revenue cap was

Offshore (DKK 1.1bn) Onshore

(DKK 0.0bn)

Bio & Other

(DKK –2.0bn)

Management’s review

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Interim financial report

First quarter 2023

introduced in Q4 2022.

EBITDA from our CHP plants amounted to DKK

0.8 billion in Q1 2023, a decrease of DKK 1.0

billion compared to the same period last year.

The decrease was mainly due to unfavourable

spreads for power condensing generation.

EBITDA from our gas business contributed with

earnings of DKK -0.2 billion in Q1 2023, DKK 1.0

billion lower than in the same period last year.

The decrease was to a large extent driven by

temporary positive effects from revaluation of

our gas at storage during Q1 2022 due to the

high and volatile gas prices vs a loss during Q1

2023. In addition, we were able to lock in gains

from optimising the offtake flexibility in some

of our sourcing contracts in north-western Eu-

rope in Q1 2022. In contrast, our decision to

unwind gas hedges related to the Gazprom

Export contract to balance our risk if gas sup-

plies from Russia were terminated led to a net

loss on the Gazprom Export sourcing contract

in Q1 2022.

EBIT

EBIT decreased by DKK 2.8 billion to DKK 4.5

billion in Q1 2023. This was mainly due to the

lower EBITDA and higher depreciation from

more assets in operation.

Financial income and expenses

Net financial income and expenses amounted

to DKK -1.5 billion compared to DKK -0.8 billion

in Q1 2022. The higher net expenses were main-

ly due to negative exchange rate adjustments

from decreasing USD rates and higher interest

expenses on loans.

Tax and tax rate

Tax on profit for the period amounted to DKK

-0.1 billion, DKK 0.9 billion lower than last year.

The effective tax rate was -2 %. The tax rate

was affected by a reversal of a recognised

deferred tax liability in the US related to the

tax equity partnership for Ocean Wind 1 fol-

lowing our signed agreement in January to

acquire PSEG’s 25 % equity stake.

Profit for the period

Profit for the period totalled DKK 3.2 billion,

DKK 2.5 billion lower than Q1 2022. The de-

crease was mainly due to the lower EBIT and

higher net financial expenses.

Cash flows and net debt

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 10.1 billion in Q1 2023 compared to DKK

0.0 billion in Q1 2022.

During Q1 2023, we released DKK 3.3 billion,

net, in variation margin payments on unreal-

ised hedges (part of ‘Change in derivatives’)

and initial margin payments at clearing houses

(part of ‘Change in other working capital’) as a

result of falling and less volatile power and

gas prices:

–

The variation margin payments were a

cash inflow of DKK 2.0 billion vs a cash

outflow of 6.9 billion in Q1 2022. DKK 1.9

billion of the inflow related to power hedg-

es in Offshore, and DKK 0.0 billion related

to gas hedges in Bioenergy & Other

–

The initial margin payments were a cash

inflow of DKK 1.3 billion vs a cash outflow

of DKK 1.5 billion in Q1 2022.

In Q1 2023, we had a net cash outflow from

work in progress of DKK 2.7 billion, mainly

from construction work at Greater Changhua

1. In Q1 2022, we had a net cash outflow of

DKK 0.9 billion, mainly from construction work

at Greater Changhua 1 and the offshore trans-

mission asset at Hornsea 2. In Q1 2022, this

was partly offset by received milestone pay-

ments from partners at Borkum Riffgrund 3.

In Q1 2023, cash outflows from tax equity con-

tributions were higher than in Q1 2022 due to

more assets in operation (tax credits recog-

nised in EBITDA are reversed in this line item).

There were no significant tax equity contribu-

tion inflows in either period.

Furthermore, ‘Change in other working capital’

was positively impacted by lower receivables

due to the falling prices in Q1 2023 in addition

to the aforementioned release of margin pay-

ments.

Investments and divestments

Gross investments amounted to DKK 8.8 bil-

lion in Q1 2023. The main investments were:

–

offshore wind farms (DKK 6.0 billion), in-

cluding Greater Changhua 1 and 2a in Tai-

wan, and our portfolio of US and German

projects

–

onshore wind and solar PV farms (DKK 2.7

billion), including the construction of Elev-

Cash flow and net debt, DKKm Q1 2023 Q1 2022 %

Cash flows from operating activities

10,119 (37) n.a.

EBITDA

6,910 9,429 (27 %)

Reversal of gain (loss) on divestments of assets

(124) (1,863) (93 %)

Change in derivatives, excl. variation margin

3,187 2,977 7 %

Change in variation margin

1,971 (6,941) n.a.

Change in provisions

12 (765) n.a.

Other items

(168) (65) 158 %

Interest expense, net

(300) (217) 38 %

Paid tax

(795) (231) 244 %

Change in work in progress

(2,651) (925) 187 %

Change in tax equity partner liabilities

(640) (496) 29 %

Change in other working capital

2,717 (940) n.a.

Gross investments

(8,768) (6,832) 28 %

Divestments

(16) 1,927 n.a.

Free cash flow

1,335 (4,942) n.a.

Net debt, beginning of period

30,571 24,280 26 %

Free cash flow

(1,335) 4,942 n.a.

Dividends and hybrid coupon paid

5,963 281 2022 %

Addition of lease obligations, net

28 53 (47 %)

Exchange rate adjustments, etc.

34 470 (93 %)

Net debt, end of period

35,261 30,026 17 %

Management’s review

10/33

Interim financial report

First quarter 2023

against 37.5 % in Q1 2022. Higher adjusted

NIBD was offset by higher FFO.

ESG results

Green share of energy generation

The green share of heat and power generation

amounted to 89 % in Q1 2023 compared to

92 % in Q1 2022. The decrease of 3 percentage

points was primarily driven by a switch from

biomass- to coal-based generation at

Studstrup Power Station (unit 3) following the

silo fire in September 2022, partly offset by

higher generation from our wind and solar

farms.

Greenhouse gas emissions

Our greenhouse gas emissions from heat and

power generation (scope 1 and 2) increased by

14 % in Q1 2023 compared to Q1 2022. This

was primarily due to the increased use of coal

at Studstrup Power Station (unit 3) after the

fire in the wood pellet silo.

Our scope 1 and 2 greenhouse gas intensity

increased to 52 g CO

e/kWh in Q1 2023

against 48 g CO

e/kWh in Q1 2022. The in-

crease was mainly driven by the increased use

of coal in our thermal heat and power genera-

tion, partly offset by higher wind and solar

power generation.

Greenhouse gas emissions from our supply

chain and sales activities (scope 3) was 58 %

lower than in Q1 2022, primarily due to 66 %

lower natural gas sales in Q1 2023.

Safety

In Q1 2023, we had 15 total recordable injuries

(TRIs), of which 12 injuries were related to con-

en Mile, Sunflower Wind, Mockingbird, and

our portfolio of European projects.

We had no divestments in Q1 2023. In Q1 2022,

divestments amounted to DKK 1.9 billion and

were mainly related to the 50 % farm-down of

Borkum Riffgrund 3.

Interest-bearing net debt

Interest-bearing net debt (NIBD) totalled DKK

35.3 billion at the end of March 2023 against

DKK 30.6 billion at the end of 2022. The in-

crease was mainly due to dividend payments

of DKK 6.0 billion. Free cash flow was positive

with DKK 1.3 billion.

Equity

Equity was DKK 102.8 billion at the end of

March 2023 against DKK 95.5 billion at the end

of 2022. At the end of March 2023, the post-tax

hedging and currency translation reserve

amounted to a loss of DKK 16.8 billion.

Capital employed

Capital employed was DKK 138.1 billion at the

end of March 2023 against DKK 126.1 billion at

the end of 2022 mainly due to new invest-

ments.

Financial ratios

Return on capital employed (ROCE)

Return on capital employed (ROCE) was 13.8 %

in Q1 2023. The decrease of 5 percentage

points compared to last year was attributable

to a lower EBIT and a higher capital employed.

Credit metric (FFO/adjusted net debt)

The funds from operations (FFO)/adjusted net

debt credit metric was 37.4 % in Q1 2023

tractors’ employees. In total, this was an in-

crease of 7 injuries compared to Q1 2022. The

number of hours worked was 5.5 million hours,

a decrease of 10 % compared to Q1 2022. The

total recordable injury rate (TRIR) increased

from 1.3 in Q1 2022 to 2.7 in Q1 2023.

Key ratios, DKKm, %

Q1 2023 Q1 2022 %

ROCE 13.8 19.0 (5 %)p

Adjusted net debt 46,777 43,964 6 %

FFO/adjusted net debt 37.4 37.5 0 %p

Capital employed

Offshore



Onshore



Bioenergy & Other



DKK 138.1 billion

5 %

23 %

72 %

Taxonomy-aligned KPIs

The taxonomy-aligned share of revenue

was 87 %, whereas the aligned share of

EBITDA was 99 %, gross investments was

99 %, and OPEX was 72 %, in Q1 2023. The

non-eligible part of our revenue primarily

concerned our long-term legacy activities

related to sourcing and sale of gas (8 % of

revenue in Q1 2023).

Read more about our EU taxonomy-

aligned KPIs in note 2.1 in the ESG Perfor-

mance Report for Q1 2023.

11/33

Management’s review

Interim financial report First quarter 2023

Financial results Q1 2023

Power generation increased by 15 % to 5.2

TWh in Q1 2023. The increase was due to

ramp-up at Hornsea 2 and Greater Changhua 1

and 2a, partly offset by slightly lower wind

speeds.

Wind speeds amounted to a portfolio average

of 10.9 m/s, which was lower than in Q1 2022

(11.3 m/s) and marginally below the normal

wind speeds expected in the first quarter (11.0

m/s).

Availability ended at 95 %, in line with the

same period last year.

Revenue increased by 12 % to DKK 22.1 billion.

Revenue from offshore wind farms in operation

increased by 51 % to DKK 5.8 billion, mainly

driven by higher generation. Revenue from

power sales increased by 11 % to DKK 15.5 bil-

lion, due to an increase in power sales volumes,

partly offset by lower power prices. Revenue

from construction agreements mainly related

to the construction of Borkum Riffgrund 3 for

partners.

EBITDA decreased by DKK 0.5 billion and

amounted to DKK 5.4 billion.

EBITDA from ‘Sites, O&M, and PPAs’ amounted

to DKK 5.9 billion in Q1 2023. It was positively

impacted by the higher generation and as the

DKK -1.6 billion negative effects from over-

hedging and ineffective hedges in Q1 2022 due

to delayed ramp-up at Hornsea 2 combined

with very high power prices were not repeated

in Q1 2023. In Q1 2023, we had a negative im-

pact on our merchant exposure due to declin-

ing prices after having lowered our hedge rati-

os for Q1 2023 at a time when prices were

higher than the realised levels in the quarter

(DKK -0.5 million). This was mainly offset by a

partial reversal of the temporary negative

impact in 2022 from hedges not fulfilling the

requirements for hedge accounting under IFRS

9 (DKK 0.5 billion).

EBITDA from partnerships amounted to DKK

0.0 billion in Q1 2023. The decrease of DKK 2.7

billion was mainly due to the gain from the 50

% farm-down of Borkum Riffgrund 3 (new part-

nerships) of DKK 1.6 billion in Q1 2022 together

with release of a warranty provision towards

our partners related to cable protection sys-

tem issues at some of our offshore wind farms.

EBITDA from other activities, including project

development, amounted to DKK -0.4 billion, in

line with Q1 2022.

Q1 2023 Q1 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW

12.0 11.1 8 %

Installed capacity

8.9 7.6 17 %

Generation capacity

4.7 4.2 12 %

Wind speed

m/s

10.9 11.3 (3 %)

Load factor

53 54 (1 %p)

Availability

95 95 0 %p

Power generation

GWh

5,162 4,502 15 %

Denmark

599 641 (7 %)

United Kingdom

3,416 2,862 19 %

Germany

566 565 0 %

The Netherlands

412 400 3 %

APAC

141 - n.a.

Other

28 34 (18 %)

Power sales GWh 10,642 9,166 16 %

Power price, LEBA UK

GBP/MWh

145 251 (42 %)

British pound

DKK/GBP

8.4 8.9 (5 %)

Financial performance



Revenue

DKKm

22,144 19,806 12 %

Sites, O&M, and PPAs

5,840 3,863 51 %

Power sales

15,499 13,977 11 %

Construction agreements

572 1,739 (67 %)

Other

233 227 3 %

EBITDA

DKKm

5,412 5,919 (9 %)

Sites, O&M, and PPAs

5,859 3,698 58 %

Construction agreements and divestment gains (42) 2,620 n.a.

Other, incl. project development (405) (399) 2 %

Depreciation

DKKm

(1,693) (1,521) 11 %

EBIT

DKKm

3,719 4,398 (15 %)

Cash flow from operating activities

DKKm

9,606 (2,206) n.a.

Gross investments

DKKm

(6,013) (5,548) 8 %

Divestments

DKKm

(21) 1,945 n.a.

Free cash flow DKKm

3,572 (5,809) n.a.

Capital employed DKKm

98,666 83,827 18 %

O&M: Operation and maintenance agreements, PPAs: Power purchase agreements

Offshore

12/33

Management’s review

Interim financial report First quarter 2023

Financial results Q1 2023

Power generation from our operating onshore

assets increased by 17 % compared to Q1 2022

and amounted to 3.8 TWh. The increase was

due to the commissioning of Ford Ridge and

the wind part of Helena Energy Center, ramp-

up of generation at Old 300, and the acquisi-

tion of Ostwind in Q4 2022. In Q1 2023, the

wind speeds across the portfolio were 8.1 m/s,

which were higher than last year (7.9 m/s) and

a normal wind year (7.8 m/s).

Availability for wind was lower during the

quarter due to minor technical issues, mainly at

Willow Springs, Haystack, and Lincoln Land.

Revenue increased by 4 % compared to Q1

2022 and amounted to DKK 0.7 billion. The

increase was mainly due to higher power gen-

eration as a result of the newly commissioned

assets, partly offset by lower prices across the

portfolio.

EBITDA for Q1 2023 amounted to DKK 0.8 bil-

lion, in line with the same period last year. The

positive impact from ramp-up of generation

from new assets was offset by lower prices,

especially in I&UK where a revenue cap was

introduced in Q4 2022, and by higher develop-

ment costs as our portfolio is expanding.

Onshore

Q1 2023 Q1 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW 6.2 4.7 33 %

Installed capacity

4.5 3.6 24 %

Wind speed

m/s

8.1 7.9 3 %

Load factor, wind

45 47 (2 %p)

Load factor, solar PV

16 21 (5 %p)

Availability, wind

91 96 (5 %p)

Availability, solar PV

99 99 (0 %p)

Power generation

GWh

3,750 3,203 17 %

US, wind

3,055 2,675 14 %

US, solar PV

363 289 26 %

Europe

332 239 39 %

US dollar DKK/USD

6.9 6.6 5 %

Financial performance

Revenue

DKKm

721 690 4 %

EBITDA

DKKm

834 850 (2 %)

Sites

324 496 (35 %)

Production tax credits and tax attributes 759 568 34 %

Other, incl. project development (249) (214) 16 %

Depreciation

DKKm

(441) (358) 23 %

EBIT

DKKm

393 492 (20 %)

Cash flow from operating activities

DKKm

(142) (188) (24 %)

Gross investments

DKKm

(2,668) (1,221) 119 %

Divestments

DKKm

3 - n.a.

Free cash flow DKKm (2,807) (1,409) 99 %

Capital employed DKKm

31,473 22,110 42 %

13/33

Management’s review

Interim financial report First quarter 2023

Financial results Q1 2023

Heat generation decreased by 2 % in Q1 2023

and power generation decreased by 21 %,

mainly due to less attractive spreads for power

condensing generation.

Gas sales and power sales decreased by 66 %

and 48 %, respectively, due to no volumes be-

ing delivered under the Gazprom Export sourc-

ing contract as the contract was terminated in

Q1 2023 and due to a gradual phase-out of our

remaining UK B2B activities.

Revenue decreased by 52 % compared to Q1

2022 and amounted to DKK 6.9 billion. The

decrease was driven by significantly lower gas

and power sales as well as lower prices.

EBITDA amounted to DKK 0.5 billion compared

to DKK 2.5 billion in Q1 2022.

EBITDA from ‘CHP plants’ was DKK 1.0 billion

lower than in Q1 2022. This was due to the

lower generation and spreads mentioned

above.

EBITDA from ‘Gas Markets & Infrastructure’

decreased by DKK 1.0 billion relative to Q1

2022. In Q1 2023, we had a loss in the gas port-

folio due to a temporary negative effect from

revaluation of storage, whereas Q1 2022 saw

positive effects from revaluation of our gas at

storage due to the high and volatile gas prices.

In addition, we were able to lock in gains from

optimising the offtake flexibility in some of our

sourcing contracts in north-western Europe in

Q1 2022. In contrast, our decision to unwind

gas hedges related to the Gazprom Export

contract to balance our risk if gas supplies

from Russia were terminated led to a net loss

on the Gazprom Export sourcing contract in Q1

2022.

Bioenergy & Other

Q1 2023 Q1 2022 %

Business drivers 

Degree days Number 1,157 1,141 1 %

Heat generation

GWh

3,178 3,243 (2 %)

Power generation

GWh

1,697 2,138 (21 %)

Gas sales

GWh

4,468 12,993 (66 %)

Power sales

GWh

877 1,690 (48 %)

Gas price, TTF

EUR/MWh

54.1 95.6 (43 %)

Power price, DK

EUR/MWh

103.3 151.1 (32 %)

Green dark spread, DK

EUR/MWh

(25.6) 18.5 n.a.

Wood pellet spread, DK

EUR/MWh

11.8 20.1 (41 %)

Financial performance



Revenue

DKKm

6,890 14,474 (52 %)

EBITDA

DKKm

517 2,514 (79 %)

CHP plants 845 1,823 (54 %)

Gas Markets & Infrastructure (237) 725 n.a.

Other, incl. project development

(91) (34) 168 %

Depreciation DKKm

(240) (189) 27 %

EBIT

DKKm

277 2,325 (88 %)

Cash flow from operating activities

DKKm

(922) 2,439 n.a.

Gross investments

DKKm

(56) (51) 10 %

Divestments

DKKm

- (8) n.a.

Free cash flow

DKKm

(978) 2,380 n.a.

Capital employed DKKm

6,861 92 7358 %

14/33

Management’s review

Interim financial report First quarter 2023

Q1 2023 Q1 2022 2022

Income statement

Revenue

29,369 33,762 132,277

EBITDA

6,910 9,429 32,057

Offshore

5,412 5,919 19,569

Sites, O&M, and PPAs

5,859 3,698 9,940

Construction agreements and divestment gains

(42) 2,620 12,277

Other, incl. project development

(405) (399) (2,648)

Onshore

834 850

3,644

Bioenergy & Other

517 2,514 8,619

Other activities

147 146 225

Depreciation and amortisation

(2,438) (2,128) (9,754)

Operating profit (loss) (EBIT)

4,472 7,301 19,774

Gain (loss) on divestment of enterprises

169 108 331

Net financial income and expenses

(1,519) (848) (2,536)

Profit (loss) before tax

3,135 6,561 17,609

Tax

67 (860) (2,613)

Profit (loss) for the period

3,202 5,701 14,996

Balance

Assets 306,644 301,687 314,142

Equity

102,826 76,719 95,532

Shareholders in Ørsted A/S

78,551 55,704 71,743

Non-controlling interests

4,482 3,031 3,996

Hybrid capital

19,793 17,984 19,793

Interest-bearing net debt

35,261 30,026 30,571

Capital employed

138,087 106,745 126,103

Additions to property, plant, and equipment

7,939 5,127 33,662

Cash flow

Cash flow from operating activities

10,119 (37) 11,924

Gross investments

(8,768) (6,832) (37,447)

Divestments

(16) 1,927 25,636

Free cash flow

1,335 (4,942) 113

Financial ratios

Return on capital employed (ROCE)

, % 13.8 19.0 16.8

FFO/adjusted net debt

, % 37.4 37.5 42.7

Number of outstanding shares, end of period, '000

420,381 420,381 420,381

Share price, end of period, DKK

583 849 631

Market capitalisation, end of period, DKK billion

245 357 265

Earnings per share (EPS), DKK

4.6 13.2 34.6

Dividend yield, %

- - 2.1

Impairment

- - (2,529)

Q1 2023 Q1 2022 2022

Offshore

Decided (FID'ed) and installed capacity, GW

12.0 11.1 11.1

Installed capacity, GW

8.9 7.6 8.9

Generation capacity, GW

4.7 4.2 4.7

Wind speed, m/s

10.9 11.3 9.5

Load factor, %

53 54 42

Availability, %

95 95 94

Power generation, GWh

5,162 4,502 16,483

Power sales, GWh

10,642 9,166 33,745

Onshore

Decided (FID'ed) and installed capacity, GW

6.2 4.7 6.2

Installed capacity, GW

4.5 3.6 4.2

Wind speed, m/s

8.1 7.9 7.4

Load factor, wind, %

45 47 40

Load factor, solar PV, %

16 21 25

Availability, wind, %

91 96 93

Availability, solar PV, %

99 99 98

Power generation, GWh

3,750 3,203 13,146

Bioenergy & Other

Degree days, number

1,157 1,141 2,548

Heat generation, GWh

3,178 3,243 6,368

Power generation, GWh

1,697 2,138 6,012

Power sales, GWh

877 1,690 5,399

Gas sales, GWh

4,468 12,993 31,637

ESG statements

Employees (FTE), end of period number

8,422 7,016 8,027

Total recordable injury rate (TRIR), YTD

2.7 1.3 3.1

Fatalities, number

- - -

Green share of energy generation, %

89 92 91

GHG emission (scope 1 & 2), Mtonnes

0.7 0.6 2.5

GHG intensity (scope 1 & 2), g CO

e/kWh 52 48 60

GHG emissions (scope 3), Mtonnes

1.5 3.7 11.0

Performance highlights

EBIT last 12 months.

2 FFO last 12 months.

15/33

Management’s review

Interim financial report First quarter 2023

Quarterly overview

Financials, DKKm

2023

2022

2021

Income statement

Revenue 29,369 35,679 36,541 26,295 33,762 30,666 14,510 13,553

EBITDA 6,910 6,696 12,317 3,615 9,429 8,253 2,984 8,196

Offshore 5,412 2,094 9,652 1,904 5,919 5,244 1,304 7,527

Sites, O&M, and PPAs 5,859 3,746 467 2,031 3,698 3,983 1,822 2,368

Construction agreements and

divestment gains

(42) (715) 9,765 601 2,620 2,469 (9) 5,648

Other incl. project development (405) (937) (580) (728) (399) (1,208) (509) (489)

Onshore 834 852 867 1,075 850 530 413 178

Bioenergy & Other 517 3,609 1,849 647 2,514 2,416 1,206 503

Other activities 147 141 (51) (11) 146 63 61 (12)

Depreciation and amortisation (2,438) (2,792) (2,530) (2,304) (2,128) (2,143) (1,939) (1,959)

Operating profit (loss) (EBIT) 4,472 1,375 9,787 1,311 7,301 5,980 1,045 6,237

Gain (loss) on divestment of enterprises 169 32 124 67 108 (684) (22) (72)

Net financial income and expenses (1,519) (985) (217) (486) (848) (930) (351) (466)

Profit (loss) before tax 3,135 460 9,695 893 6,561 4,361 671 5,698

Tax 67 (789) (340) (624) (860) (1,103) (184) (154)

Profit (loss) for the period 3,202 (329) 9,355 269 5,701 3,258 487 5,544

Balance sheet

Assets 306,644 314,142 359,758 320,722 285,087 270,385 261,892 223,791

Equity 102,826 95,532 53,777 61,276 76,719 85,137 79,150 96,910

Shareholders in Ørsted A/S 78,551 71,743 32,413 40,091 55,704 64,072 58,129 75,842

Non-controlling interests 4,482 3,996 3,380 3,201 3,031 3,081 3,037 3,084

Hybrid capital 19,793 19,793 17,984 17,984 17,984 17,984 17,984 17,984

Interest-bearing net debt 35,261 30,571 45,701 41,449 30,026 24,280 21,211 12,067

Capital employed 138,087 126,103 99,478 102,725 106,745 109,416 100,361 108,977

Additions to property, plant, equipment 7,939 9,912 9,899 8,724 5,127 17,041 11,477 8,954

Cash flow

Cash flow from operating activities 10,119 20,915 (11,309) 2,355 (37) 668 246 3,147

Gross investments (8,768) (9,826) (14,417) (6,372) (6,832) (11,752) (8,757) (12,133)

Divestments (16) 983 22,459 267 1,927 10,952 7 10,591

Free cash flow 1,335 12,072 (3,267) (3,750) (4,942) (132) (8,504) 1,605

Financial ratios

Return on capital employed (ROCE)

, % 13.8 16.8 24.4 14.8 19.0 14.8 12.9 12.5

FFO/adjusted net debt

, % 37.4 42.7 35.3 39.0 37.5 26.3 42.5 56.9

Number of outstanding shares, end of period, '000 420,381 420,381 420,381 420,381 420,381 420,381 420,381 420,381

Share price, end of period, DKK

583 631 608 742 849 835 849 880

Market capitalisation, end of period, DKK billion 245 265 255 312 357 351 357 370

Earnings per share (EPS), DKK 4.6 1.2 22.3 0.3 13.2 7.5 1.1 12.9

Impairment - (2,529) - - - (129) - -

Business drivers

2022

2021

Offshore

Decided (FID'ed) and installed capacity, GW 11.1 11.1 11.1 11.1 10.9 9.8 9.8

Installed capacity, GW

8.9 8.9 7.6 7.6 7.6 7.6 7.6

Generation capacity, GW

4.7 5.3 4.8 4.2 4.0 4.0 4.0

Wind speed, m/s

10.7 7.7 8.4 11.3 10.6 7.6 7.8

Load factor, %

54 28 35 54 53 27 29

Availability, %

95 91 94 95 95 93 93

Power generation, GWh

5,411 3,246 3,324 4,502 4,452 2,286 2,521

Power sales, GWh

11,563 5,600 7,416 9,166 8,791 4,803 4,541

Onshore

Decided (FID'ed) and installed capacity, GW

6.2 5.1 4.9 4.7 4.7 4.7 4.7

Installed capacity, GW

4.2 4.2 4.0 3.6 3.4 3.0 2.5

Wind speed, m/s

7.7 6.0 7.8 7.9 7.9 6.4 7.3

Load factor, wind, %

40 28 47 47 47 33 45

Availability, wind, %

91 92 92 96 96 98 97

Power generation, GWh

3,425 2,723 3,795 3,203 2,818 1,904 1,983

Bioenergy & Other

Degree days, number

861 98 448 1,141 927 81 487

Heat generation, GWh

2,064 239 823 3,243 2,467 402 1,148

Power generation, GWh

1,409 1,363 1,102 2,138 2,096 1,028 1,507

Power sales, GWh

904 1,339 1,466 1,690 2,072 2,271 2,167

Gas sales, GWh

4,048 5,706 8,891 12,993 13,744 13,580 15,079

ESG statements

Employees (FTE) end of period, number

8,027 7,681 7,292 7,016 6,836 6,672 6,472

Total recordable injury rate (TRIR), YTD

3.1 3.3 2.8 1.3 3.0 3.0 3.1

Fatalities, number

- - - - - - -

Green share of energy generation, %

88 89 93 92 93 89 93

GHG intensity (scope 1 & 2), g CO

e/kWh

62 88 49 48 45 91 51

GHG emissions (scope 3), Mtonnes

1.5 3.1 2.6 3.7 3.9 4.4 4.6

2023

12.0

8.9

4.7

10.9

5,162

10,642

6.2

4.5

8.1

3,750

1,157

3,178

1,697

877

4,468

8,422

2.7

1.5

Load factor, solar PV, %

16 17 32 31 21 19 27 29

Availability, solar PV, %

99 99 96 99 99 99 98 90

GHG emissions (scope 1 & 2), Mtonnes

0.7 0.8 0.7 0.4 0.6 0.5 0.5 0.4

EBIT last 12 months.

2 FFO last 12 months.

16/33

Management’s review

Interim financial report First quarter 2023

Consolidated

financial statements

First quarter 2023

1 January – 31 March

Consolidated financial statements

Interim financial report First quarter 2023

17/33

Consolidated statements of income

1 January – 31 March

’Value adjustments for the period’ in the first three months of 2023 are mainly

a result of gains on power hedges due to decrease in power prices.

Note

Income statement

DKKm Q1 2023 Q1 2022

3 Revenue 29,369 33,762

Cost of sales (20,344) (24,547)

Other external expenses (1,629) (1,175)

Employee costs (1,540) (1,166)

Share of profit (loss) in associates and joint ventures 62 55

4 Other operating income 1,096 2,576

4 Other operating expenses (104) (76)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 6,910 9,429

Amortisation, depreciation, and impairment losses on intangible

assets, and property, plant, and equipment (2,438) (2,128)

Operating profit (loss) (EBIT)

4,472 7,301

Gain (loss) on divestment of enterprises 169 108

Share of profit (loss) in associates and joint ventures 13 -

5 Financial income 3,086 1,063

5 Financial expenses (4,605) (1,911)

Profit (loss) before tax

3,135 6,561

8 Tax on profit (loss) for the period 67 (860)

Profit (loss) for the period

3,202 5,701

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S 2,810 5,556

Interests and costs, hybrid capital owners of Ørsted A/S 145 145

Non-controlling interests 247 -

Earnings per share (DKK) 4.6 13.2

Diluted earnings per share (DKK) 4.6 13.2

Statement of comprehensive income

DKKm Q1 2023 Q1 2022

Profit (loss) for the period 3,202 5,701

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period 12,963 (22,961)

Value adjustments transferred to income statement (551) 5,692

Value adjustments transferred to balance sheet - (32)

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises 71 (52)

Value adjustment of net investment hedges (88) (41)

Tax:

Tax on hedging instruments (2,679) 3,342

Tax on exchange rate adjustments (68) 112

Other:

Share of other comprehensive income of associated companies, after tax 1 9

Other comprehensive income 9,649 (13,931)

Total comprehensive income 12,851 (8,230)

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S 12,472 (8,373)

Interest payments and costs, hybrid capital owners of Ørsted A/S 145 145

Non-controlling interests 234 (2)

Total comprehensive income 12,851 (8,230)

Consolidated financial statements

Interim financial report First quarter 2023

18/33

Consolidated balance sheet

31 March

Note

Assets

DKKm

31 March

2023

31 December

2022

31 March

2022

Intangible assets 4,300 4,029 1,828

Land and buildings 8,162 7,980 7,963

Production assets 117,626 119,211 100,998

Fixtures and fittings, tools, and equipment 1,490 1,543 636

Property, plant, and equipment under construction 55,221 48,931 55,302

Property, plant, and equipment 182,499 177,665 164,899

Investments in associates and joint ventures 833 772 662

Other securities and equity investments 176 182 224

10 Derivatives 1,213 1,804 5,809

Deferred tax 10,114 13,719 14,730

Other receivables 3,408 3,243 2,670

Other non-current assets 15,744 19,720 24,095

Non-current assets 202,543 201,414 190,822

Inventories 13,040 14,103 16,430

10 Derivatives 15,663 23,433 40,509

Contract assets 913 408 2

Trade receivables 8,733 12,701 8,724

Other receivables 15,151 20,289 17,650

8 Income tax 63 419 1,336

10 Securities 30,964 25,197 20,416

Cash 19,574 16,178 4,550

Current assets 104,101 112,728 109,617

Assets classified as held for sale - - 1,248

Assets 306,644 314,142 301,687

Note

Equity and liabilities

DKKm

31 March

2023

31 December

2022

31 March

2022

Share capital 4,204 4,204 4,204

7 Reserves (16,806) (26,467) (38,716)

Retained earnings 91,153 88,331 84,961

Proposed dividends - 5,675 5,255

Equity attributable to shareholders in Ørsted A/S 78,551 71,743 55,704

Hybrid capital 19,793 19,793 17,984

Non-controlling interests 4,482 3,996 3,031

Equity 102,826 95,532 76,719

Deferred tax 5,041 7,414 3,661

Provisions 19,436 19,121 14,835

Lease liabilities 7,541 7,697 6,706

11 Bond and bank debt 75,402 60,451 36,305

10 Derivatives 18,080 24,121 23,298

Contract liabilities 3,043 3,085 3,190

Tax equity liabilities 12,773 14,490 13,376

Other payables 7,265 7,363 4,463

Non-current liabilities 148,581 143,742 105,834

Provisions 603 585 731

Lease liabilities 533 569 740

11 Bond and bank debt 2,387 2,830 14,077

10 Derivatives 20,090 33,438 69,222

Contract liabilities 2,305 2,269 1,460

Trade payables 14,450 20,641 19,517

Tax equity liabilities 2,874 1,903 1,197

Other payables 6,604 7,518 5,660

8 Income tax 5,391 5,115 5,951

Current liabilities 55,237 74,868 118,555

Liabilities 203,818 218,610 224,389

Liabilities relating to assets classified

as held for sale

- -

579

Equity and liabilities 306,644 314,142 301,687

Consolidated financial statements

Interim financial report First quarter 2023

19/33

1 See note 7 ‘Reserves’ for more information about reserves.

Consolidated statement of shareholders’ equity

1 January – 31 March

2023 2022

DKKm

capital Reserves

Retained

earnings

Proposed

dividends

Share-

holders in

Ørsted A/S

Hybrid

capital

Non-con-

trolling

interests

Total

Group

capital Reserves

Retained

earnings

Proposed

dividends

Share-

holders in

Ørsted A/S

Hybrid

capital

Non-con-

trolling

interests

Total

Group

Equity at 1 January 4,204 (26,467) 88,331 5,675 71,743 19,793 3,996 95,532 4,204 (24,778) 79,391 5,255 64,072 17,984 3,081 85,137

Comprehensive income

for the period:

Profit (loss) for the period - - 2,810 - 2,810 145 247 3,202 - - 5,556 - 5,556 145 - 5,701

Other comprehensive income:

Cash flow hedging - 12,412 - - 12,412 - - 12,412 - (17,301) - - (17,301) - - (17,301)

Exchange rate adjustments - (4) - - (4) - (13) (17) - (91) - - (91) - (2) (93)

Tax on other comprehensive income - (2,747) - - (2,747) - - (2,747) - 3,454 - - 3,454 - - 3,454

Share of other comprehensive income

of associated companies, after tax - - 1 - 1 - - 1 - - 9 - 9 - - 9

Total comprehensive income - 9,661 2,811 - 12,472 145 234 12,851 - (13,938) 5,565 - (8,373) 145 (2) (8,230)

Coupon payments, hybrid capital - - - - - (145) - (145) - - - - - (150) - (150)

Tax, hybrid capital - - - - - - - - - - - - - 5 - 5

Dividends paid - - 2 (5,675) (5,673) - (146) (5,819) - - - - - - (131) (131)

Additions, non-controlling interests - - - - - - 398 398 - - - - - - 83 83

Other changes - - 9 - 9 - - 9 - - 5 - 5 - - 5

Equity at 31 March 4,204 (16,806) 91,153 - 78,551 19,793 4,482 102,826 4,204 (38,716) 84,961 5,255 55,704 17,984 3,031 76,719

Consolidated financial statements

Interim financial report First quarter 2023

20/33

Statement of cash flows

Our supplementary statement of gross and net investments appears from

note 6 ’Gross and net investments’ and free cash flow (FCF) from note 2

’Segment information’.

’Cash’ according to the balance sheet as at 31 March 2023 includes ’Bank

overdrafts that are part of the ongoing cash management’, amounting to

DKK 3 million.

Consolidated statement of cash flows

1 January – 31 March

Note

Statement of cash flows

DKKm Q1 2023 Q1 2022

Operating profit (loss) before depreciation, amortisation, and

impairment losses (EBITDA) 6,910 9,429

Reversal of gain (loss) on divestment of assets

(124) (1,863)

Change in derivatives

5,158 (3,964)

Change in provisions

12 (765)

Other items

(168) (65)

Change in inventories 1,141 (498)

Change in contract assets and liabilities (615) (976)

Change in trade receivables 3,933 725

Change in other receivables 631 (2,361)

Change in trade payables (5,599) 1,093

Change in tax equity liabilities (640) (496)

Change in other payables 575 152

Interest received and similar items 3,041 1,250

Interest paid and similar items (3,341) (1,467)

Income tax paid (795) (231)

Cash flows from operating activities 10,119 (37)

Purchase of intangible assets and property, plant, and equipment

(8,772) (6,801)

Sale of intangible assets and property, plant, and equipment

(20) 1,862

Divestment of enterprises

2 (19)

Purchase of other equity investments

3 1

Purchase of securities

(7,911) (813)

Sale/maturation of securities

2,013 992

Change in other non-current assets

(13) (2)

Transactions with associates and joint ventures

14 (30)

Cash flows from investing activities (14,684) (4,810)

Note DKKm Q1 2023 Q1 2022

Proceeds from raising of loans 14,854 6,559

Instalments on loans (549) (6,923)

Instalments on leases (188) (173)

Coupon payments on hybrid capital (145) (150)

Dividends paid to shareholders in Ørsted A/S (5,673) -

Transactions with non-controlling interests (142) (43)

Net proceeds from tax equity partners (104) (51)

Collateral posted in relation to trading of derivatives (7,878) (11,140)

Collateral released in relation to trading of derivatives 5,883 11,659

Restricted cash and other changes 1,801 1,028

Cash flows from financing activities 7,859 766

Total net change in cash and cash equivalents 3,294 (4,081)

Cash and cash equivalents at the beginning of the period 16,175 8,614

Total net change in cash and cash equivalents 3,294 (4,081)

Exchange rate adjustments of cash and cash equivalents 102 15

Cash and cash equivalents at 31 March 19,571 4,548

Consolidated financial statements

Interim financial report First quarter 2023

21/33

Implementation of new standards,

interpretations, and amendments adopted

by the Group

The accounting policies adopted in the

preparation of the interim financial statements

are consistent with those followed in the

preparation of our annual consolidated

financial statements for the year ended

31 December 2022, except for the adoption of

new standards effective as of 1 January 2023.

The Group has not early adopted any

standard, interpretation, or amendment that

has been issued but not yet effective.

Several amendments apply for the first time in

2023, but do not have a material impact on

our financial statements.

Ørsted is a listed public company, headquar-

tered in Denmark.

This interim financial report for the first three

months of 2023 comprises the interim financial

statements of Ørsted A/S (the parent

company) and any subsidiaries controlled by

Ørsted A/S.

The interim financial report has been prepared

in accordance with the International Financial

Reporting Standards (IFRS), IAS 34 ’Interim

Financial Reporting’ as adopted by the EU, and

further requirements in the Danish Financial

Statements Act (Årsregnskabsloven) for the

presentation of quarterly interim reports by

listed companies.

Definitions of alternative performance

measures can be found on page 152 of the

annual report for 2022.

The interim consolidated financial statements

for the first three months of 2023 is a

condensed set of financial statements, as it

does not include all information and

disclosures required by the annual financial

statements. The interim consolidated financial

statements has been prepared using the same

accounting policies as our annual consolidated

financial statements as of 31 December 2022

and should be read in conjunction with this.

1. Basis of reporting

Consolidated financial statements

Interim financial report First quarter 2023

22/33

The column ’Other activities/eliminations’ primarily

covers the elimination of inter-segment transactions.

It also includes income and costs, assets and

liabilities, investment activity, taxes, etc., handled at

Group level.

1 Including the elimination of other activities, the total

elimination of intra-group revenue amounts to

DKK 1,438 million, which primarily relates to our

Shared Functions services as well as our B2B

business activities.

2. Segment information

2023 income statement

DKKm Offshore Onshore

Bioenergy

& Other

Reportable

segments

Other

activities/

eliminations Total

External revenue 21,828 721 6,800 29,349 20 29,369

Intra-group revenue 316 - 90 406 (406)

Revenue 22,144 721 6,890 29,755 (386) 29,369

Cost of sales (14,800) (45) (5,746) (20,591) 247 (20,344)

Employee costs and other external expenses (2,182) (641) (631) (3,454) 285 (3,169)

Gain (loss) on disposal of non-current assets 124 - - 124 - 124

Additional other operating income and expenses 65 799 3 867 1 868

Share of profit (loss) in associates and joint ventures 61 - 1 62 - 62

EBITDA 5,412 834 517 6,763 147 6,910

Depreciation and amortisation

(1,693) (441) (240)

(2,374)

(64)

(2,438)

Operating profit (loss) (EBIT) 3,719 393 277 4,389 83 4,472

Key ratios

Intangible assets and property, plant, and equipment 117,520 58,934 8,978 185,432 1,367 186,799

Equity investments and non-current receivables 685 100 106 891 164 1,055

Net working capital, capital expenditures (4,103) (612) (28) (4,743) - (4,743)

Net working capital, work in progress 3,853 19 - 3,872 - 3,872

Net working capital, tax equity - (14,482) - (14,482) - (14,482)

Net working capital, other items 4,863 166 2,868 7,897 1,161 9,058

Derivatives, net (14,956) (6,824) 179 (21,601) 307 (21,294)

Decommissioning obligations (10,392) (1,788) (2,088) (14,268) - (14,268)

Other provisions (1,928) (3) (1,788) (3,719) (2,052) (5,771)

Tax, net 3,991 (4,032) (1,364) (1,405) 1,150 (255)

Other receivables and other payables, net (867) (5) (2) (874) (1,010) (1,884)

Capital employed at 31 March 98,666 31,473 6,861 137,000 1,087 138,087

Return on capital employed (ROCE), % - - - - - 13.8

Cash flow from operating activities 9,606 (142) (922) 8,542 1,577 10,119

Gross investments (6,013) (2,668) (56) (8,737) (31) (8,768)

Divestments (21) 3 - (18) 2 (16)

Free cash flow (FCF) 3,572 (2,807) (978) (213) 1,548 1,335

Consolidated financial statements

Interim financial report First quarter 2023

23/33

2. Segment information (continued)

The column ’Other activities/eliminations’ primarily

covers the elimination of inter-segment transactions.

It also includes income and costs, assets and

liabilities, investment activity, taxes, etc., handled at

Group level.

1 Including the elimination of other activities, the total

elimination of intra-group revenue amounts to

DKK 1,968 million, which primarily relates to our

Shared Functions services as well as our B2B

business activities.

2022 income statement

DKKm Offshore Onshore

Bioenergy

& Other

Reportable

segments

Other

activities/

eliminations Total

External revenue 17,345 690 15,718 33,753 9 33,762

Intra-group revenue 2,461 - (1,244) 1,217 (1,217)

Revenue 19,806 690 14,474 34,970 (1,208) 33,762

Cost of sales (14,292) (10) (11,451) (25,753) 1,206 (24,547)

Employee costs and other external expenses (1,563) (400) (526) (2,489) 148 (2,341)

Gain (loss) on disposal of non-current assets 1,863 - - 1,863 - 1,863

Additional other operating income and expenses 51 569 17 637 - 637

Share of profit (loss) in associates and joint ventures 54 1 - 55 - 55

EBITDA 5,919 850 2,514 9,283 146 9,429

Depreciation and amortisation

(1,521) (358) (189)

(2,068)

(60)

(2,128)

Impairment losses

- - -

Operating profit (loss) (EBIT) 4,398 492 2,325 7,215 86 7,301

Key ratios

Intangible assets and property, plant, and equipment 110,396 46,525 8,419 165,340 1,387 166,727

Assets classified as held for sale, net - - 684 684 - 684

Equity investments and non-current receivables 548 46 130 724 199 923

Net working capital, capital expenditures (6,641) (432) (28) (7,101) - (7,101)

Net working capital, work in progress 6,821 - - 6,821 - 6,821

Net working capital, tax equity - (13,262) - (13,262) - (13,262)

Net working capital, other items 10,212 369 908 11,489 476 11,965

Derivatives, net (33,570) (5,911) (7,744) (47,225) 1,023 (46,202)

Decommissioning obligations (6,247) (1,387) (1,405) (9,039) - (9,039)

Other provisions (2,550) (11) (1,778) (4,339) (2,188) (6,527)

Tax, net 8,859 (3,812) 903 5,950 504 6,454

Other receivables and other payables, net (4,001) (15) 3 (4,013) (685) (4,698)

Capital employed at 31 March 83,827 22,110 92 106,029 716 106,745

Return on capital employed (ROCE), % - - - - - 19.0

Cash flow from operating activities (2,206) (188) 2,439 45 (82) (37)

Gross investments (5,548) (1,221) (51) (6,820) (12) (6,832)

Divestments 1,945 - (8) 1,937 (10) 1,927

Free cash flow (FCF) (5,809) (1,409) 2,380 (4,838) (104) (4,942)

Consolidated financial statements

Interim financial report First quarter 2023

24/33

Revenue was DKK 29,369 million. The

decrease of 13 % relative to the first three

months of 2022 was primarily due to the

significantly lower power and gas prices

across all markets.

Revenue from construction agreements was

DKK 642 million in Q1 2023 and mainly

related to the construction of Borkum

Riffgrund 3 for partners.

Income from government grants in Offshore

increased relative to the first three months of

2022 due to lower power prices, which led to a

higher subsidy per MWh produced.

3. Revenue

Revenue

DKKm Offshore Onshore

Bioenergy &

Other

activities/

eliminations

2023

total Offshore Onshore

Bioenergy &

Other

activities/

eliminations

2022

total

Generation of power 2,996 508 2,515 - 6,019 2,050 553 2,956 - 5,559

Sale of power 14,094 - 149 (255) 13,988 12,950 - 1,747 (1,235) 13,462

Revenue from construction of wind farms and transmission assets 572 70 - - 642 1,739 - - - 1,739

Generation and sale of heat and steam - - 1,483 - 1,483 - - 1,206 - 1,206

Sale of gas - - 2,254 - 2,254 - - 7,333 31 7,364

Distribution and transmission - - 49 - 49 - - 67 (2) 65

O&M and other services 924 27 283 (139) 1,095 721 12 75 (2) 806

Total revenue from customers 18,586 605 6,733 (394) 25,530 17,460 565 13,384 (1,208) 30,201

Government grants 2,152 160 137 - 2,449 1,319 161 203 - 1,683

Miscellaneous revenue 1,406 (44) 20 8 1,390 1,027 (36) 887 - 1,878

Total revenue 22,144 721 6,890 (386) 29,369 19,806 690 14,474 (1,208) 33,762

Timing of revenue recognition from customers

At a point in time 15,557 605 3,923 (394) 19,691 14,817 565 7,684 (1,208) 21,858

Over time 3,029 - 2,810 - 5,839 2,643 - 5,700 - 8,343

Total revenue from customers 18,586 605 6,733 (394) 25,530 17,460 565 13,384 (1,208) 30,201

Consolidated financial statements

Interim financial report First quarter 2023

25/33

4. Other operating income and expenses

Other operating income

‘Gain on divestment of assets’ in Q1 2023

primarily related to minor adjustments

regarding the transfer pricing case with the

Norwegian Tax Administration (stemming

from the divestment of our upstream oil and

gas business in 2017). In Q1 2022, ’Gain on

divestment of assets’ mainly related to the

50 % farm-down of Borkum Riffgrund 3.

The increase in ’US tax credits and tax

attributes’ was mainly due to the commis-

sioning of new onshore wind farms in 2022,

which have had full impact in Q1 2023.

5. Financial income and expenses

The table shows net financial income and expenses corresponding to our

internal reporting.

Exchange rate adjustments and hedging contracts entered into to hedge

currency risks are presented net under the item ’Exchange rate adjustments,

net’.

‘Interest expenses, net’ are higher in Q1 2023, mostly due to the additional

interest expenses on the bonds issued later in 2022, and, in March 2023, lower

share of capitalised costs, and higher bank fees.

The increase in ‘Exchange rate adjustments, net’ is mostly driven by the

increase in GBP/DKK and decrease in USD/DKK rates in Q1 2023.

‘Value adjustments of securities at market value, net’ and ‘Value adjustments

of securities, net’ were both impacted by the increase in interest rates in

Q1 2022.

Other operating income

DKKm Q1 2023 Q1 2022

Gain on divestment of assets 147 1,892

Insurance compensation 3 -

US tax credits and tax attributes 759 568

Other compensation 123 50

Miscellaneous operating income 64 66

Total other operating income 1,096 2,576

Other operating expenses

DKKm Q1 2023 Q1 2022

Ineffective hedges, etc. 64 -

Loss on divestment of assets 23 29

Miscellaneous operating expenses 17 47

Total other operating expenses 104 76

Net financial income and expenses

DKKm Q1 2023 Q1 2022

Interest expenses, net (401) (204)

Interest expenses, leasing (67) (45)

Interest element of provisions, etc. (177) (103)

Tax equity partner's contractual return (254) (237)

Value adjustments of derivatives, net (102) 396

Exchange rate adjustments, net (453) (22)

Value adjustments of securities at market value, net (81) (628)

Other financial income and expenses 16 (5)

Net financial income and expenses (1,519) (848)

Consolidated financial statements

Interim financial report First quarter 2023

26/33

7. Reserves6. Gross and net investments

’Value adjustments of hedging reserve’ in the first three months of 2023 are

mainly a result of gains on power hedges due to the decrease in power prices.

Gross and net investments

DKKm Q1 2023 Q1 2022

Cash flows from investing activities (14,684) (4,810)

Purchase and sale of securities, reversed 5,898 (179)

Sale of non-current assets, reversed 18 (1,843)

Gross investments (8,768) (6,832)

Transactions with non-controlling interests in connection with divestments 2 84

Sale of non-current assets (18) 1,843

Divestments (16) 1,927

Net investments (8,784) (4,905)

Reserves 2023

DKKm

Foreign

currency

translation

reserve

Hedging

reserve

Total

reserves

Reserves at 1 January (725) (25,742) (26,467)

Exchange rate adjustments 84 - 84

Value adjustments of hedging reserve - 12,875 12,875

Value adjustments transferred to:

Revenue - (605) (605)

Other operating expenses - 64 64

Financial income and expenses - (10) (10)

Tax:

Tax on hedging and currency adjustments (88) (2,659) (2,747)

Movement in comprehensive income for the period (4) 9,665 9,661

Total reserves including tax at 31 March (729) (16,077) (16,806)

Total reserves excluding tax at 31 March (1,461) (19,447) (20,908)

Reserves 2022

DKKm

Reserves at 1 January 1,475 (26,253) (24,778)

Exchange rate adjustments (50) - (50)

Value adjustments of hedging reserve - (23,002) (23,002)

Value adjustments transferred to:

Revenue - 5,736 5,736

Financial income and expenses - (44) (44)

Property, plant, and equipment - (32) (32)

Tax:

Tax on hedging and currency adjustments 103 3,351 3,454

Movement in comprehensive income for the period 53 (13,991) (13,938)

Total reserves including tax at 31 March 1,528 (40,244) (38,716)

Total reserves excluding tax at 31 March 1,462 (50,701) (49,239)

Interim financial report First quarter 2023

27/33

Consolidated financial statements

Tax on profit (loss) for the period

Tax on profit (loss) was DKK -67 million for the

first three months of 2023 compared to

DKK 860 million for the first three months of

2022.

Effective tax rate

The effective tax rate for the first three

months of 2023 was -2 %. The effective tax

rate was affected by the reversal of the

recognised deferred tax liability in the US

related to tax equity contributions for Ocean

Effective tax rate

The effective tax rate for the first three months of 2023 was calculated on the

basis of the profit (loss) before tax.

‘Other adjustments’ include changes in tax rates, movements in uncertain tax

positions, tax concerning previous years, and non-recognised tax losses.

8. Tax on profit (loss) for the period

Wind 1, following our signed agreement in

January to acquire PSEG’s 25 % equity stake in

the offshore wind energy project Ocean

Wind 1. The impact is partly offset by the

continued recognition of a deferred tax

liability in the US related to tax equity

contributions for Old 300 and the continued

recognition of deferred tax liabilities in the US

related to tax equity partnerships for our

offshore wind farm South Fork Wind. The

deferred tax liabilities regarding Old 300 and

South Fork Wind will increase until COD.

Accounting policies

Effective tax rate

The estimated average annual tax rate is

separated into four different categories:

1) ordinary business activities, 2) gain (loss)

on divestments, 3) impacts from tax equity

partnerships in the US, and 4) other adjust-

ments not related to the current year’s

profit (loss).

Q1 2023 Q1 2022

Tax for the period

DKK

Profit (loss)

before tax Tax Tax in %

Profit (loss)

before tax Tax Tax in %

Tax equity, deferred tax liability 926 n.a. (163) n.a.

Gain (loss) on divestment of enterprises and assets - - n.a. 1,463 - n.a.

Other adjustments (152) n.a. 357 n.a.

Remaining business 3,135 (707) 23 % 5,098 (1,054) 21 %

Effective tax for the period 3,135 67 (2) % 6,561 (860) 13 %

Consolidated financial statements

Interim financial report First quarter 2023

28/33

For USD and NTD, we manage our

risk to a natural time spread bet-

ween front-end capital expenditures

and long-term revenue. In the five-

year horizon, we are therefore seeing

that our hedges increase our net

exposure, but in the longer horizon,

our hedges reduce the risk.

We do not deem EUR to constitute a

risk, as we expect Denmark to

maintain its fixed exchange-rate

policy.

Our power exposure before and

after hedging has decreased

significantly in Q1 2023 due to the

decrease in power prices.

The exposures are based on market

prices as of 31 March 2023.

Energy exposure 1 April 2023 - 31 March 2028

DKKbn

Currency exposure 1 April 2023 - 31 March 2028

DKKbn

9. Market risks

Due to decreases in energy prices in

Q1 2023, the loss on hedges and

power purchase agreements (PPAs)

has been reduced.

At 31 March 2023, the pre-tax loss of

the hedging reserve was DKK 19.4

billion, of which DKK 20.1 billion will

be transferred to EBITDA over the

coming periods, as shown in the

table. The losses will be countered

by a higher sales price on our future

power production.

EBITDA impact from hedges and financial PPAs

DKKbn

Market risk management

Our most significant market risks relate to:



energy and commodity prices



foreign exchange rates



interest rates and inflation.

The overall objective of our risk management

is to:



increase the predictability of the short-term

earnings and FFO/NIBD by securing the price

of energy and currency



protect the long-term real value of

shareholders’ investments in Ørsted by

matching fixed nominal cash flows from our

assets with fixed nominal debt.

For more details on our market risks, please

see notes 6.1-6.4 in the annual report for 2022.

Consolidated financial statements

Interim financial report First quarter 2023

29/33

Market values are determined by the Risk

Management function, which reports to the

Group CFO. The development in market values

is monitored on a continuing basis and

reported to the Group Executive Team.

Significant non-observable inputs

Market values based on non-observable input

comprise primarily long-term contracts on the

Valuation principles and key 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.

The table shows the

movements during the year

in the total market value

(assets and liabilities) of

derivatives valued on the

basis of non-observable

inputs.

10. Fair value measurement

purchase or sale of power and gas. Since there

are no active markets for the long-term power

and gas prices, the market values have been

determined through an estimate of the future

prices.

Estimating non-observable power prices

Since our CPPAs are normally settled on the

actual production, and the power prices avail-

able 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 (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.

The table shows the

significant unobservable

inputs used in the fair value

measurements categorised

as ‘non-observable input’,

together with a sensitivity

analysis as at 31 March 2023.

If intermittency-adjusted

power prices in Germany as

of 31 March 2023 increased

by 25 %, the market value

would decrease by

DKK 1,700 million.

Overview of significant

non-observable inputs and

sensitivities

Power price per MWh (DKK) Sensitivity (DKKm)

Weight

average

Monthly

minimum

Monthly

maximum

+25 % -25 %

Intermittency-adjusted power price

Germany (2025-2034) 647 491 1,043 (1,700) 1,700

Ireland (2023-2042) 791 611 1,165 (212) 212

US ERCOT (2023-2030) 226 84 668 (3,320) 3,465

US SPP (2023-2030) 209 116 396 (477) 684

US MISO (2023-2033) 357 175 528 (675) 627

Assets Liabilities

Fair value hierarchy

DKKm

Inventories Securities Derivatives Derivatives

2023

Quoted prices 4,659 - 8,323 9,610

Observable input - 30,964 7,966 16,724

Non-observable input - - 587 11,836

Total 31 March 2023 4,659 30,964 16,876 38,170

2022

Quoted prices 1,000 - 18,626 22,467

Observable input - 20,416 26,100 56,056

Non-observable input - - 1,592 13,997

Total 31 March 2022 1,000 20,416 46,318 92,520

Derivatives valued on the basis of

non-observable input

DKKm 2023 2022

Market value at 1 January (14,687) (7,448)

Value adjustments through profit or loss 508 (188)

Value adjustments through other

comprehensive income 2,962 (4,915)

Sales/redemptions 77 283

Purchases/issues 143 (181)

Transferred from quoted prices and

observable input - 44

Transferred to quoted prices and observable

input (252) -

Market value at 31 March (11,249) (12,405)

Non-observable input per commodity

price input

DKKm 2023 2022

US power prices (6,471) (7,360)

German power prices (3,742) (3,898)

UK power prices (338) -

Irish power prices (643) -

Other power prices 38 (810)

Gas prices (93) (337)

Total (11,249) (12,405)

Consolidated financial statements

Interim financial report First quarter 2023

30/33

Interest-bearing net debt totalled DKK 35,261 million at 31 March 2023, which was an increase of

DKK 4,690 million relative to 31 December 2022. The main changes in the composition of our net

debt compared to 31 December 2022 was an increase in bond debt of DKK 15,068 million, partly

countered by an increase in securities and cash of DKK 5,767 million and DKK 3,396 million,

respectively, relative to 31 December 2022.

11. Interest-bearing debt and FFO

Market value of bond and bank debt

At 31 March 2023, the market values of bond

and bank debts were DKK 66.0 billion and

DKK 8.0 billion, respectively.

Changes in bond and bank debt

In February 2023, Ørsted issued three green

bonds at a total nominal amount of

EUR 2,000 million. The bonds were issued

under the existing debt issuance programme

(EMTN programme):



EUR 700 million with maturity in 2026 at a

fixed interest rate of 3.625 %



EUR 600 million with maturity in 2030 at

a fixed interest rate of 3.750 %



EUR 700 million with maturity in 2035 at a

fixed interest rate of 4.125 %.

Interest-bearing debt and interest-bearing assets

DKKm

31 March

2023

31 December

2022

31 March

2022

Interest-bearing debt:

Bank debt 8,353 8,913 15,870

Bond debt 69,436 54,368 34,512

Total bond and bank debt 77,789 63,281 50,382

Tax equity liability 1,165 1,236 1,311

Lease liability 8,074 8,266 7,446

Other interest-bearing debt:

Debt in connection with divestments 2,880 2,904 -

Debt from receiving collateral under credit support annexes 541 1,196 860

Other interest-bearing debt 431 824 551

Total interest-bearing debt 90,880 77,707 60,550

Interest-bearing assets:

Securities 30,964 25,197 20,416

Cash 19,574 16,178 4,550

Cash, not available for use 280 2,471 315

Other receivables:

Receivables from placing collateral under credit support

annexes 3,789 2,449 4,496

Receivables in connection with divestments 721 713 747

Other receivables 291 128 -

Total interest-bearing assets 55,619 47,136 30,524

Total net interest-bearing debt 35,261 30,571 30,026

Consolidated financial statements

Interim financial report First quarter 2023

31/33

11. Interest-bearing debt and FFO (continued)

1 Last 12 months.

We aim to have a long-term FFO/adjusted NIBD at above 25 %, in line with the rating agencies.

Funds from operations (FFO) LTM

DKKm

31 March

2023

31 December

2022

31 March

2022

EBITDA 29,538 32,057 28,862

Change in provisions and other adjustments (1,538) (2,213) (1,820)

Change in derivatives 434 (8,687) (5,203)

Variation margin (add back) 1,419 10,332 6,447

Reversal of gain (loss) on divestment of assets (9,146) (10,885) (9,563)

Income tax paid (1,827) (1,263) (737)

Interest and similar items, received/paid (646) (563) (430)

Reversal of interest expenses transferred to assets (511) (586) (851)

50 % of coupon payments on hybrid capital (262) (264) (237)

Dividends received and capital reductions 23 23 29

Funds from operations (FFO) 17,484 17,951 16,497

Adjusted interest-bearing net debt

DKKm

31 March

2023

31 December

2022

31 March

2022

Total interest-bearing net debt 35,261 30,571 30,026

50 % of hybrid capital 9,897 9,897 8,992

Other interest-bearing debt, add back (3,852) (4,924) (1,411)

Other interest-bearing receivables, add back 4,801 3,290 5,243

Cash and securities not available for distribution,

excluding repo loans 670 3,241 1,114

Total adjusted interest-bearing net debt 46,777 42,075 43,964

Funds from operations (FFO)/

adjusted interest-bearing net debt, %

31 March

2023

31 December

2022

31 March

2022

Funds from operations (FFO)/

adjusted interest-bearing net debt 37.4% 42.7% 37.5%

Consolidated financial statements

Interim financial report First quarter 2023

32/33

Financial resources

DKK billion

12. Financial resources

risk that will occur if we gain on the

transaction.

We are trading under both type of agreements

to increase the number of counterparties with

whom we are engaging to achieve the most

optimal prices.

To mitigate and limit the potential negative

impact on our cash position from temporary

fluctuations in market prices, we actively

manage the volumes of trade between trading

with and without collateral arrangements.

As of 31 March 2023 , 6 % (2022: 31 %)

of our power and gas trades and 94 %

(2022: 86 %) of our currency, inflation, and

interest rate hedges had daily margin

settlements.

To limit cash impact, we also provide non-cash

collateral as parent company and bank

Financial resources

At 31 March 2023, financial resources

amounted to DKK 98.8 billion (31 December

2022: DKK 97.8 billion). The financial resources

were in particular built up during 2022 to

ensure sufficient liquidity to cope with

collateral payments and continuing invest-

ments in the green transformation.

During the quarter, we issued green bonds

denominated in EUR with proceeds equivalent

to DKK 14.8 billion.

Collateral and margin postings

When we trade in derivatives to execute our

hedging strategy, we have two alternatives:



Trading on exchanges where the market

value is settled on an ongoing basis

through receipt or placing of collateral.



Trading OTC where we accept the credit

DKK 97.8 billion

DKK 98.8 billion

Collateral and margin postings

DKK billion

DKK 17.3 billion

DKK 13.4 billion

Initial margin and variation margins

relate to energy hedges, and the

credit support annex (CSA) relates to

currency, inflation, and interest rate

hedges. Other collateral mainly

relates to insurance liabilities and

escrow accounts. Further securities

can be placed as collateral in repo

transactions as part of our cash

management.

guarantees, where possible. At the end of

March 2023, we had covered EUR 0.7 billion in

collateral for initial margins and variation

margins on energy hedges through a parent

company guarantee.

Our collateral and margin payments related

to trading with derivatives and collateral

related to insurance liabilities and escrow

accounts have decreased from DKK 17.3 billion

at 31 December 2022 to DKK 13.4 billion at

31 March 2023. The decrease was primarily

driven by the large decrease in power and gas

prices. Collateral payments related to initial

margins and variation margins decreased by

DKK 1.8 billion and DKK 2.0 billion,

respectively, during the three months of the

year and amounted to DKK 9.6 billion at

31 March 2023. The decrease in initial margins

and variation margins consists of DKK 3.3

billion in cash and DKK 0.5 billion in bonds.

Consolidated financial statements

Interim financial report First quarter 2023

33/33

most significant risks and uncertainties have

occurred relative to the disclosures in the

annual report for 2022.

The Board of Directors and the Executive

Board have today considered and approved

the interim financial report of Ørsted A/S for

the period 1 January - 31 March 2023.

The interim financial report which has not

been audited or reviewed by the company’s

independent auditors has been prepared in

accordance with IAS 34 'Interim Financial

Reporting' as adopted by the EU and

additional requirements in the Danish

Financial Statements Act. The accounting

policies remain unchanged from the annual

report for 2022.

In our opinion, the interim financial report

gives a true and fair view of the Group's

assets, liabilities, and financial position at

31 March 2023 and of the results of the

Group's operations and cash flows for the

period 1 January - 31 March 2023.

Furthermore, in our opinion, the Management's

review gives a fair presentation of the

development in the Group's operations and

financial circumstances, of the results for the

period, and of the overall financial position of

the Group as well as a description of the most

significant risks and elements of uncertainty

facing the Group.

Over and above the disclosures in the interim

financial report, no changes in the Group's

Skærbæk, 3 May 2023

Mads Nipper

Group President and CEO

Daniel Lerup

CFO

Thomas Thune Andersen

Chair

Andrew Brown

Peter Korsholm

Leticia Francisca Torres

Mandiola*

Lene Skole

Deputy Chair

Jørgen Kildahl

Dieter Wemmer

Alice Florence Marion

Vallienne*

Annica Bresky

Julia King, the Baroness

Brown of Cambridge

Benny Gøbel*

Anne Cathrine Collet Yde*

*Employee-elected board member

Executive Board:

Board of Directors:

Statement by the Executive Board

and the Board of Directors

Henriette Fenger Ellekrog

Chief HR Officer

17/33

Management’s review

Interim financial report First quarter 2023

Ørsted A/S

CVR no. 36213728

Kraftværksvej 53

DK-7000 Fredericia

Tel.: +45 9955 1111

orsted.com

Group Communication

Martin Barlebo

Tel.: +45 9955 9552

Investor Relations

Rasmus Keglberg Hærvig

Tel.: +45 9955 9095

Front page image

Ørsted apprentices at Avedøre Power Station

Copenhagen, Denmark

Publication

3 May 2023