Untitled

Interim financial report

First half year 2023

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Interim financial report

First half year 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 Thursday, 10 August 2023

at 15:00 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-Q2-2023

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, H1 2023

CEO’s review ........................................................................................................ 3

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

Outlook 2023 ...................................................................................................... 7

Results H1 ............................................................................................................... 8

Results Q2 ............................................................................................................. 11

Business units’ Q2 results............................................................................. 13

Performance highlights ................................................................................ 16

Quarterly overview ......................................................................................... 17

Consolidated statements of income H1 ............................................ 19

Consolidated statements of income Q2 ........................................... 20

Consolidated balance sheet .................................................................... 21

Consolidated statement of shareholders’ equity ....................... 22

Consolidated statement of cash flows ............................................. 23

Notes

1. Basis of reporting .......................................................................................... 24

2. Segment information ................................................................................. 25

3. Revenue .............................................................................................................. 28

4. Other operating income and expenses ......................................... 30

5. Financial income and expenses .......................................................... 30

6. Gross and net investments .................................................................... 31

7. Reserves ............................................................................................................. 31

8. Tax on profit (loss) for the period ...................................................... 32

9. Markets risks .................................................................................................... 33

10. Fair value measurement ....................................................................... 34

11. Interest-bearing net debt and FFO .................................................. 35

12. Financial resources .................................................................................... 37

Management’s statement

Statement by the Executive Board and the Board of Direc-

tors .............................................................................................................................. 38

Financial statements

Consolidated financial statements

3/38

Management’s review

Interim financial report First half year 2023

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 69 are now fully

commissioned. The construction work is pro-

gressing and, depending on weather condi-

tions, we aim to install and commission the

remaining 14 turbines in H2 2023.

At South Fork in the US, we have installed the

offshore substation and all the foundations.

The 130 MW wind farm is expected to be

commissioned in Q4 this year in accordance

with the original plan.

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. At the solar

part of Helena Energy Center, we are now

receiving solar panels again and are in the

process of installing them. The project is still

expected to be fully commissioned in 2024.

We’ve broken ground on Europe’s largest e-

methanol project, FlagshipONE. This not only

marks the construction start of the project but

also the first steps in a new green era of ship-

ping, where large-scale methanol production

facilities will supply a constantly growing fleet

of methanol-powered vessels. FlagshipONE is

expected to start production in 2025 and will

produce 50,000 tonnes of methanol yearly.

Our green share of heat and power generation

amounted to 92 %.

Financials

Operating profit (EBITDA) amounted to DKK

10.2 billion in H1 2023, a DKK 2.8 billion de-

crease compared to the same period last year.

EBITDA excluding new partnerships decreased

by DKK 1.2 billion.

Earnings in Offshore increased due to strong

sites earnings, which were positively affected

by ramp-up at Hornsea 2 and Greater Chang-

hua 1 and 2a, and due to the negative impact

from hedges not being repeated.

Earnings in Onshore were slightly down as

ramp-up of generation from new assets was

more than offset by lower wind speeds and

lower prices, especially in the UK and Ireland.

The significantly lower power and gas prices

have substantially reduced earnings in Bioen-

ergy & Other, which came in around breake-

ven.

We maintain our full-year EBITDA guidance of

DKK 20-23 billion excluding earnings from new

partnerships. Compared to our expectations at

the beginning of year, we now expect higher

earnings in Offshore and lower earnings in

Bioenergy. We lower our gross investment

guidance by DKK 6 billion to DKK 44-48 billion

but expect to spend a similar amount on

acquiring ownership shares from PSEG and

Eversource.

CEO’s review

Continued strong financial performance with high earnings in our

offshore business and several new partnerships.

Financials

Operating profit (EBITDA) for the first half

year was in line with our expectations for the

Group and amounted to DKK 10.2 billion.

Earnings from offshore sites in operation

stood strong in the first half year and in-

creased by DKK 3.3 billion compared to the

same period last year. In contrast, earnings

in Bioenergy & Other decreased by DKK 3.2

billion following the very volatile and ele-

vated price levels in 2022.

We maintain our full-year EBITDA guidance

of DKK 20-23 billion. Compared to our ex-

pectations at the beginning of year, we now

expect higher earnings in Offshore and lower

earnings in Bioenergy.

Construction and operational progress

Construction work is progressing at Greater

Changhua 1 and 2a in Taiwan and, depend-

ing on weather conditions, we aim to com-

mission the remaining turbines before year-

end. South Fork in the US is also progressing

and is expected to be commissioned in Q4 .

Our green share of heat and power genera-

tion amounted to 92 %.

Business development

We acquired Eversource’s 50 % interest in

Lease Area 500 in North-eastern USA. This

brings our total lease capacity in the region

up to more than 4 GW.

We entered into a partnership with ESB,

Ireland’s leading utility company, to jointly

develop an Irish offshore wind portfolio. The

partnership has the potential to deliver up to

5 GW.

We received development consent for

Hornsea 4, one of the world’s largest wind

farms with a capacity of up to 2.6 GW.

We entered into an agreement with Green-

coat to divest our remaining 25 % stake in

London Array.

The Danish Energy Agency (DEA) awarded us

a 20-year contract for the carbon capture

and storage (CCS) project ‘Ørsted

Kalundborg Hub’.

We held our CMD in London in June, where

we confirmed our ambition of ~50 GW re-

newable capacity by 2030 and strong finan-

cial outlook.

Highlights 

Management’s review

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Interim financial report

First half year 2023

ingful uplift to the OREC price, should it be

approved. We have had positive dialogues

with the authorities, and there is a common

understanding that something needs to hap-

pen in order to support the green energy

transformation in New York.

We have entered into a partnership with ESB,

Ireland’s leading utility company, to jointly

develop an Irish offshore wind portfolio. With

the agreement, we become a 50/50 partner in

a pipeline of offshore wind development

projects off the Irish coast. The partnership has

the potential to deliver up to 5 GW of renewa-

ble energy and complementary renewable

hydrogen projects, and the first of these

offshore wind projects is expected to compete

in the next Irish offshore wind auction.

In July, we received development consent

from the British authorities to continue the

development of our up to 2.6 GW Hornsea 4

offshore wind project. With this consent, the

Hornsea zone, including Hornsea 1, 2, 3, and 4,

will have a total capacity of approx. 7 GW,

making it the world’s largest offshore wind

zone. In the same month, the offshore trans-

mission assets at Hornsea 2 have been divest-

ed to Diamond Transmission Partners Hornsea

Two Limited (DTP) at a value of GBP 1.1 billion

(100 %).

We are happy that the Danish Government

resumed processing some open-door applica-

tions, and that Vikinge Banke, our 1.1 GW

partnership project with CIP, was one of them.

We entered into an agreement with Green-

coat, a leading UK renewable infrastructure

fund, to divest our remaining 25 % stake in

London Array. As we are a minority owner in

Business development

Offshore

We signed an agreement to acquire Ever-

source’s 50 % interest in Lease Area 500, an

uncontracted federal offshore wind lease area

currently owned jointly by the two companies,

at a price significantly lower than the New

York Bight auction and with better wind condi-

tions and shallower water. In addition to the

seabed, the agreement also includes contracts

and leases for strategic port facilities and other

assets in the US Northeast. This acquisition

adds capacity on top of our already awarded

seabed capacity, and now our portfolio of

north-eastern US lease rights amount to more

than 4 GW, making Ørsted’s lease capacity the

largest in the region. The transaction positions

us for future growth with the largest pipeline of

offshore capacity in the region.

At Ocean Wind 1, we received the record of

decision (RoD) from the US Department of the

Interior’s Bureau of Ocean Energy, successfully

reaching a major achievement in the federal

environmental review process. With this mile-

stone, Ocean Wind 1 remains on track to begin

onshore construction activities in the fall of

2023, with offshore construction ramping up in

2024.

We are pleased that New Jersey has approved

Ørsted to retain all federal tax credits. This is

an important and necessary step to continue

with the Ocean Wind 1 project following the

substantial cost increases experienced across

the US offshore projects.

To improve the viability of our Sunrise Wind

project, we have filed a petition to get retro-

spective inflation indexing for the Sunrise

project in New York, which would be a mean-

We signed an agreement to acquire Eversource’s 50 % in-

terest in Lease Area 500, an uncontracted federal offshore

wind lease area currently owned jointly by the two compa-

nies, at a price significantly lower than the New York Bight

auction. This acquisition adds capacity on top of our al-

ready awarded seabed capacity, and now our portfolio of

north-eastern US lease rights amount to more than 4 GW,

making Ørsted’s lease capacity the largest in the region.

”

the wind farm and not responsible for opera-

tion and maintenance, we found it strategical-

ly and financially sound to divest our share at

an attractive valuation that secures an NPV

retention of more than 100 %. The transaction

is expected to close in August.

Bioenergy

The Danish Energy Agency (DEA) has awarded

us a 20-year contract for the carbon capture

and storage (CCS) project ‘Ørsted Kalundborg

Hub’ in Denmark. As part of the project, we

will establish carbon capture technologies at

Asnæs Power Station and Avedøre Power

Station. The CHP plants will begin to capture

and store biogenic carbon during 2025 and will

reach full capacity of approx. 430,000 tonnes

of biogenic CO

a year in 2026. In direct sup-

port to the project, Microsoft has agreed to

purchase 2.76 million tonnes of high-quality,

durable carbon removal over 11 years from the

capture and storage of biogenic carbon. This

represents one of the world’s largest carbon

removal offtake agreements by volume to

date.

Strategic update and Capital Markets Day

On 8 June, we held our Capital Markets Day in

London. In connection with the event we

announced several strategic updates and

partnerships.

We confirmed our fully self-funded ambition of

~50 GW installed renewable capacity by

2030 and expect to invest approx. DKK 475

billion in the period 2023-2030. We also con-

firmed our target of an unlevered, fully loaded

lifecycle IRR at 150-300 bps spread to WACC

at the time of bid/FID, whichever comes first.

We expanded our EBITDA CAGR target from

covering offshore and onshore assets in opera-

tion to cover the group-wide EBITDA

(excluding new partnerships) in the period 2023

-2030. Furthermore, we target a group-wide

EBITDA (excluding new partnerships) of DKK

Management’s review

5/38

Interim financial report

First half year 2023

50-55 billion in 2030, corresponding to an

annual average increase of 13-14 %. We

extended our ROCE target to the period

2023-2030, targeting an average ROCE of

approx. 14 % in the period.

We announced an industry-first pioneering

sustainability partnership towards net-zero

wind farms with Vestas. Under the partner-

ship, we will procure low-carbon steel wind

turbine towers and blades made from recy-

cled materials for all joint offshore wind

projects. Furthermore, we entered into a long-

term agreement with Dillinger on the produc-

tion of low-carbon steel. This agreement

enables Dillinger to accelerate their invest-

ment decision for low carbon steel produc-

tion, starting production in 2027/28, and

allowing for a 55 % CO

reduction by 2030.

With the new agreement with Dillinger, and

other previously entered sourcing contracts,

we have secured approx. 80 % of our current

need for steel towards 2030. We will contin-

ue to explore similar supply opportunities.

As the first energy developer, we have com-

mitted to reuse or recycle all solar panels

from our global portfolio of solar farms with

immediate effect. By recycling or reusing

solar panels, we will help lower the depend-

ency of virgin materials. Today, reusing and

recycling solar panels are limited, and land-

filling is still common practice. This means

that materials with a high value to the green

energy transition are simply let go to waste.

We welcome the decision from the Danish

Government to reserve 30 % of its marine

area to renewable energy as well tendering

sites for 9 GW plus up to 5 GW of over-

planting with an ambition to make Denmark

a net exporter of renewable energy. It is

crucial that these developments are supple-

mented with a developer-driven expansion,

which could also include P2X.

We’re excited to launch our Youth Panel - a

forum connecting today’s decision-makers

with the climate leaders of tomorrow. The

Ørsted Youth Panel will offer a platform to

bring practical advice and concrete recom-

mendations to our sustainability agenda

directly to our CEO and senior management

in order to challenge and sharpen our ap-

proach to building a world that runs entirely

on green energy.

”

Mads Nipper

Group President & CEO

We confirmed our fully self-funded ambition of ~50 GW in-

stalled renewable capacity by 2030 and expect to invest

approx. DKK 475 billion in the period 2023-2030. We also

confirmed our target of an unlevered, fully loaded lifecycle

IRR at 150-300 bps spread to WACC.

6/38

Interim financial report

First half year 2023

At a glance

Key figures H1 2023

Revenue DKK 45.9 bn

Gross investments DKK 16.3 bn

Capital employed DKK 147.5 bn

TRIR

2.6

ROCE, last 12 months 13.2 %

Ørsted

EBITDA, DKKbn

10.2 (13.0)

84 %

0 %

16%

Offshore

Onshore Bioenergy & Other

Green share of energy generation, %

2022 2023

Offshore

EBITDA, DKKbn

Availability, %

2022 2023

9.9

9.5

9.8

2022 2023 Norm

6.2

8.4

2022 2023

7.8

8.4

1.6

Wind speed, m/s

Onshore

EBITDA, DKKbn

Availability, wind, %

2022 2023

7.9

7.4

7.7

2022 2023 Norm

1.9

1.6

2022 2023

Wind speed, m/s

Bioenergy & Other

EBITDA, DKKbn

2022 2023

3.2

(0.1)

2022 2023

Green share of energy generation, %

Degree days, number

1,589

1,566

1,729

2022 2023 Norm

New partnerships

1 Includes EBITDA from other activities/eliminations, () = last year

7/38

Management’s review

Interim financial report First half year 2023

EBITDA

EBITDA in 2023, excluding new partnership

agreements, is unchanged and still expected

to be DKK 20-23 billion. However, compared

to the guidance provided in our annual report

for 2022, we now expect even higher earnings

in Offshore, whereas we expect earnings for

our CHP plants to decrease by approx. DKK

4.5 billion compared to 2022, rather than ap-

prox. DKK 3 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

We lower our gross investment guidance for

2023 by DKK 6 billion to DKK 44-48 billion,

primarily due to timing.

However, we expect to spend approx. DKK 6

billion on acquiring PSEG’s ownership share in

Ocean Wind 1 and Eversource’s ownership

share in Lease Area 500. As these transac-

tions are with non-controlling shareholders,

they fall outside of ‘Gross investments’, but

are included in ‘Net investments’.

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

10 August 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 44-48

Guidance

3 May 2023

20-23

Significantly

higher

In line

Significantly

lower

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.

8/38

Management’s review

Interim financial report First half year 2023

Financial results

Revenue

Power generation from offshore and onshore

assets increased by 3 % and totalled 15.3 TWh

in H1 2023. The increase was due to ramp-up of

generation from Hornsea 2 (net of the farm-

down) and Greater Changhua 1 and 2a, our

onshore assets Old 300, Ford Ridge, and the

wind part of Helena Energy Center, and the

acquisition of Ostwind in Q4 2022. The ramp-

up generation was partly offset by lower wind

speeds as well as lower availability.

Heat generation decreased by 2 %, whereas

thermal power generation decreased by 19 %,

mainly due to less attractive spreads for pow-

er-condensing generation.

Our green share of generation amounted to

92 %, the same level as last year.

Revenue amounted to DKK 45.9 billion. The

decrease of 24 % relative to H1 2022 was pri-

marily due to the significantly lower power

and gas prices across all markets as well as

lower gas volumes sold.

EBITDA

Operating profit (EBITDA) for the first half year

was in line with our expectations and amount-

ed to DKK 10.2 billion, DKK 2.8 billion lower

than in H1 2022, which was positively impacted

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

Riffgrund 3 (new partnerships) of DKK 1.6 bil-

lion. EBITDA excl. new partnerships was DKK

1.2 billion lower than in H1 2022.

EBITDA from offshore sites amounted to DKK

9.0 billion, an increase of DKK 3.3 billion com-

pared to last year. The increase was mainly

due to ramp-up of generation from Hornsea 2

and Greater Changhua 1 and 2a in H1 2023,

higher prices on the inflation-indexed CfD and

ROC wind farms, lower balancing and BSUoS

costs, good performance by our power trading

activities, and as the negative impact from

hedges in H1 2022 was not repeated. This was

partly offset by lower wind speeds than in H1

2022 and a negative impact on our merchant

exposure due to declining prices after having

lowered our hedge ratios for H1 2023 at a time

when prices were higher than the realised lev-

els in the period.

EBITDA from partnerships amounted to DKK

0.3 billion in H1 2023, mainly from adjustment

of provisions toward partners partly offset by

a reduction in earnings on our construction

agreement on Greater Changhua 1 due to high-

er costs and later commissioning of the wind

turbines. In H1 2022, we had positive earnings

from work for partners at Greater Changhua 1

and from a reversal of DKK 0.5 billion of the

EBITDA excluding new partnerships, DKKbn

Results H1

Financial results, DKKm H1 2023 H1 2022 %

Revenue

45,846 60,057 (24 %)

EBITDA

10,230 13,044 (22 %)

- New partnerships

- 1,610 n.a.

- EBITDA excl new partnerships

10,230 11,434 (11 %)

Depreciation and amortisation

(4,892) (4,432) 10 %

Operating profit (loss) (EBIT)

5,338 8,612 (38 %)

Gain (loss) on divestment of enterprises

328 175 87 %

Financial items, net

(3,316) (1,334) 149 %

Profit (loss) before tax

2,372 7,454 (68 %)

Tax

292 (1,484) n.a.

Tax rate

(12 %) 20 % (32 %p)

Profit (loss) for the period

2,664 5,970 (55 %)

DKK 0.8 billion warranty provision related to

cable protection system issues at some of our

offshore wind farms towards our partners,

recognised in 2021, and an adjustment to

wake loss provisions in our German portfolio.

EBITDA from our onshore business amounted

to DKK 1.6 billion in H1 2023, DKK 0.3 billion

lower than in H1 2022. Ramp-up of generation

from new assets was more than offset by

lower prices in the US, and by lower prices

and the revenue cap introduced in Q4 2022 in

the UK and Ireland, and lower generation in

the US due to lower availability and wind

speeds. The lower availability was due to

component upgrades at Plum Creek and

Sage Draw as well as minor technical issues

at Lincoln Land, Willow Springs, and Hay-

stack.

Offshore (DKK 2.2bn) Onshore

(DKK -0.3bn)

Bio & Other

(DKK -3.2bn)

Management’s review

9/38

Interim financial report

First half year 2023

EBITDA from our CHP plants amounted to DKK

0.6 billion in H1 2023, a decrease of DKK 1.8

billion compared to the same period last year.

The decrease was mainly due to unfavourable

market-based spreads, which led to lower

power-condensing generation. In addition,

earnings from power generation were nega-

tively impacted by the high costs of biomass

and coal relative to the market prices in H1

2023 as the cost is measured using the first in,

first out (FIFO) principle. The fuel we have been

using during H1 2023 was bought last year at

the higher price levels. The opposite was the

case in H1 2022.

EBITDA from our gas business totalled DKK

-0.5 billion in H1 2023, DKK 1.3 billion lower

than in the same period last year. The decrease

was driven by a temporary negative effect

from revaluation of our gas at storage during

H1 2023 and strong earnings in H1 2022. In H1

2022, we were able to lock in gains from opti-

mising the offtake flexibility in some of our

sourcing contracts and storages, which was

partly offset by our decision to unwind gas

hedges related to the Gazprom Export con-

tract.

EBIT

EBIT decreased by DKK 3.3 billion to DKK 5.3

billion in H1 2023. This was mainly due to the

lower EBITDA and a higher depreciation from

more assets in operation.

Financial income and expenses

Net financial income and expenses amounted

to DKK -3.3 billion compared to DKK -1.3 billion

in H1 2022. The higher net expenses were main-

ly due to negative exchange rate adjustments

related to internal loans (no impact on cash

flow and NIBD).

Tax and tax rate

Tax on profit for the period amounted to DKK

0.3 billion, DKK 1.8 billion lower than last year.

The tax rate was -12 % and was affected by a

reversal of a recognised deferred tax liability in

the US related to the tax equity partnership

for Ocean Wind 1 following our agreement in

January to acquire PSEG’s 25 % equity stake.

Profit for the period

Profit for the period totalled DKK 2.7 billion,

DKK 3.3 billion lower than in H1 2022. The de-

crease was mainly due to the lower EBITDA,

higher depreciation, and higher net financial

expenses.

Cash flows and net debt

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 12.6 billion in H1 2023 compared to DKK

2.3 billion in H1 2022.

During H1 2023, we released DKK 6.1 billion,

net, in variation margin payments on unreal-

ised hedges (‘Change in variation margin’) 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 4.3 billion vs a cash

outflow of 10.5 billion in H1 2022. DKK 2.4

billion of the inflow related to power hedg-

es in Offshore, whereas DKK 1.9 billion of

the inflow related to gas hedges in Bioen-

ergy & Other.

–

The initial margin payments were a cash

inflow of DKK 2.0 billion vs a cash inflow of

DKK 4.0 billion in H1 2022. In H1 2022, we

issued parent company guarantees in total

of EUR 1 billion to reduce our initial margin

payments and, to some extent, variation

margin payments.

In H1 2023, we had a net cash outflow from

work in progress of DKK 2.5 billion, mainly

from construction work at Greater Changhua

1. In H1 2022, we had a net cash outflow of

DKK 2.3 billion, mainly from construction work

at Greater Changhua 1 and the offshore trans-

mission asset at Hornsea 2, partly offset by

received milestone payments from partners at

Borkum Riffgrund 3.

In H1 2023, cash flows from change in tax equi-

ty partner liabilities were more negative than

in H1 2022 due to more assets in operation (tax

credits recognised in EBITDA are reversed in

this line item). There were no significant tax

equity contribution inflows. In H1 2022, we

received tax equity contributions for the wind

part of Helena Energy Center.

Furthermore, ‘Change in other working capital’

was positively impacted by lower receivables

and the lower value of gas at storage due to

Cash flow and net debt, DKKm H1 2023 H1 2022 %

Cash flows from operating activities

12,566 2,318 442 %

EBITDA

10,230 13,044 (22 %)

Reversal of gain (loss) on divestments of assets

(1,303) (1,884) (31 %)

Change in derivatives, excl. variation margin

962 5,314 (82 %)

Change in variation margin

4,296 (10,529) n.a.

Change in provisions

(25) (955) (97 %)

Other items

(45) (154) (71 %)

Interest expense, net

(663) (254) 161 %

Paid tax

(1,496) (519) 188 %

Change in work in progress

(2,509) (2,348) 7 %

Change in tax equity partner liabilities

(1,152) (21) n.a.

Change in other working capital

4,271 624 584 %

Gross investments

(16,266) (13,204) 23 %

Divestments

(2,054) 2,194 n.a.

Free cash flow

(5,754) (8,692) (34 %)

Net interest-bearing debt, beginning of period

30,571 24,280 26 %

Free cash flow

5,754 8,692 (34 %)

Dividends and hybrid coupon paid

6,051 5,692 6 %

Addition of lease obligations, net

549 1,137 (52 %)

Repurchase of hybrid capital, net

699 - n.a.

Net interest-bearing debt, end of period

43,924 41,449 6 %

Exchange rate adjustments, etc.

300 1,648 (82 %)

Management’s review

10/38

Interim financial report

First half year 2023

amounted to a loss of DKK 12.3 billion.

Capital employed

Capital employed was DKK 147.5 billion at the

end of June 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 %

in H1 2023. The decrease of 2 percentage

points compared to last year was attributable

to a lower EBIT and higher capital employed.

Credit metric (FFO/adjusted net debt)

The funds from operations (FFO)/adjusted net

debt credit metric was 17.7 % in H1 2023

against 39.0 % in H1 2022. The decrease was

primarily due to lower FFO.

ESG results

Green share of energy generation

The green share of heat and power generation

amounted to 92 % in H1 2023, on level with H1

2022, however with a lower share of biomass-

based generation offset by increased share of

generation from onshore and offshore assets.

Greenhouse gas emissions

Our greenhouse gas emissions from heat and

power generation (scope 1 and 2) decreased by

15 % in H1 2023 compared to H1 2022. This was

primarily due to lower coal-based power gen-

eration.

Our scope 1 and 2 greenhouse gas intensity

decreased to 42 g CO

e/kWh in H1 2023

against 49 g CO

e/kWh in H1 2022. The de-

the falling prices in H1 2023 in addition to the

aforementioned release of initial margin pay-

ments.

Investments and divestments

Gross investments amounted to DKK 16.3 bil-

lion in H1 2023. The main investments were:

–

offshore wind farms (DKK 11.5 billion), in-

cluding Greater Changhua 1 and 2a and

Greater Changhua 2b and 4 in Taiwan, and

our portfolio of US and German projects

–

onshore wind and solar PV farms (DKK 4.6

billion), including the construction of Eleven

Mile, Sunflower Wind, Mockingbird, and our

portfolio of European projects.

In H1 2023, ‘Divestments’ amounted to DKK -2.1

billion and was mainly related to our agree-

ment to acquire PSEG’s 25 % equity stake in

Ocean Wind 1. As this transaction is with a non-

controlling shareholder, it is not included in

'Gross investments', but is part of 'Divestments'.

In H1 2022, divestments amounted to DKK 2.2

billion and were mainly related to the 50 %

farm-down of Borkum Riffgrund 3.

Interest-bearing net debt

Net financial income and expenses amounted

to DKK -3.3 billion compared to DKK -1.3 billion

in H1 2022. The higher net expenses were main-

ly due to negative exchange rate adjustments

related to internal loans (no impact on cash

flow and NIBD).

Equity

Equity was DKK 103.5 billion at the end of June

2023 against DKK 95.5 billion at the end of

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

hedging and currency translation reserve

crease was mainly driven by the decreased

use of coal in our thermal heat and power

generation as well as higher wind and solar

power generation.

Greenhouse gas emissions from our supply

chain and sales activities (scope 3) was 54 %

lower than in H1 2022, primarily due to a 61 %

reduction in natural gas sales in H1 2023.

Safety

In H1 2023, recordable injuries (TRIs) decreased

by 5 to 32, of which 23 injuries were related to

contractors’ employees. The total recordable

injury rate (TRIR) decreased from 2.8 in H1 2022

to 2.6 in H1 2023.

Key ratios, DKKm, %

H1 2023 H1 2022 %

ROCE

13.2 14.8 (2 %p)

Adjusted net debt 55,564 53,495 4 %

FFO/adjusted net debt 17.7 39.0 (21 %p)

Capital employed

Offshore



Onshore



Bioenergy & Other



DKK 147.5 billion

4 %

23 %

73 %

Taxonomy-aligned KPIs

In H1 2023, the taxonomy-aligned share of

revenue was 85 %, whereas the aligned

share of EBITDA was 102 %, gross invest-

ments was 99 %, and OPEX was 71 %. 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 H1 2023).

Read more about our EU taxonomy-

aligned KPIs in note 2.1 in the ESG Perfor-

mance Report for H1 2023.

Management’s review

11/38

Interim financial report

First half year 2023

Financial results

EBITDA

Operating profit (EBITDA) for the second quar-

ter amounted to DKK 3.3 billion, DKK 0.3 bil-

lion lower than in Q2 2022. There were no new

partnerships in either quarter.

EBITDA from offshore sites amounted to DKK

3.1 billion, an increase of DKK 1.1 billion com-

pared to last year. The increase was mainly

due to ramp-up of generation from Greater

Changhua 1 and 2a in Q2 2023, higher prices on

the inflation-indexed CfD and ROC wind farms,

lower balancing and BSUoS costs, and a lower

negative impact from hedges. This was partly

offset by lower wind speeds than in Q2 2022.

EBITDA from partnerships amounted to DKK

0.3 billion in Q2 2023, mainly from adjustment

of provisions toward partners partly offset by

a reduction in earnings on our construction

agreement on Greater Changhua 1 due to high-

er costs and later commissioning of the wind

turbines.

EBITDA from our Onshore business amounted

to DKK 0.8 billion and was DKK 0.3 billion low-

er than in Q2 2022. Ramp-up of generation

from new assets was more than offset by low-

er prices, especially in the UK and Ireland, and

lower generation in the US due to lower avail-

ability and wind speeds.

EBITDA from our CHP plants amounted to

DKK -0.2 billion in Q2 2023, a decrease of DKK

0.9 billion compared to the same period last

year. The decrease was mainly due to lower

power prices and unfavourable spreads for

power condensing generation. In addition to

the unfavourable market-based spreads, earn-

ings were negatively impacted by accounting

FIFO effects as the fuel we have been using in

Q2 2023 was bought last year at price levels

above the current market prices. The opposite

was the case in Q2 2022.

EBITDA from our gas business totalled DKK

-0.3 billion in Q2 2023, DKK 0.3 billion lower

than in the same period last year. The de-

crease was to a large extent driven by a tem-

porary negative effect from revaluation of our

gas at storage during Q2 2023.

EBITDA excluding new partnerships, DKKbn

Results Q2

Financial results, DKKm Q2 2023 Q2 2022 %

Revenue

16,477 26,295 (37 %)

EBITDA

3,320 3,615 (8 %)

- New partnerships

- - n.a.

- EBITDA excl new partnerships

3,320 3,615 (8 %)

Depreciation and amortisation

(2,454) (2,304) 7 %

Operating profit (loss) (EBIT)

866 1,311 (34 %)

Gain (loss) on divestment of enterprises

159 67 137 %

Financial items, net

(1,797) (486) 270 %

Profit (loss) before tax

(763) 893 n.a.

Tax

225 (624) n.a.

Tax rate

29 % 70 % (40 %p)

Profit (loss) for the period

(538) 269 n.a.

Cash flows

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 2.4 billion in Q2 2023, same level as in

Q2 2022.

During Q2 2023, we released DKK 3.0 billion,

net, in variation margin payments on unreal-

ised hedges (‘Change in variation margin’) 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 2.3 billion vs a cash

outflow of 3.6 billion in Q2 2022. DKK 0.5

billion of the inflow related to power

hedges in Offshore and DKK 1.8 billion

related to gas hedges in Bioenergy & Oth-

er.

Offshore

(DKK 1.1bn)

Onshore

(DKK -0.3bn)

Bio & Other

(DKK -1.2bn)

Management’s review

12/38

Interim financial report

First half year 2023

agreement to acquire PSEG’s 25 % equity

stake in Ocean Wind 1. As this transaction is

with a non-controlling shareholder, it is not

included in 'Gross investments', but is part of

'Divestments'.

–

The initial margin payments were a cash

inflow of DKK 0.4 billion vs a cash inflow of

DKK 5.5 billion in Q2 2022. In Q2 2022, we

issued parent company guarantees in total

of EUR 1 billion to reduce our initial margin

payments and, to some extent, variation

margin payments.

In Q2 2023, we had a net cash inflow from

work in progress of DKK 0.1 billion, mainly from

payables related to construction work at

Greater Changhua 1. In Q2 2022, we had a net

cash outflow of DKK 1.4 billion, mainly from

construction work at Greater Changhua 1 and

the offshore transmission asset at Hornsea 2.

In Q2 2023, cash flows from change in tax equi-

ty partner liabilities were more negative than

in Q2 2022 due to more assets in operation (tax

credits recognised in EBITDA are reversed in

this line item). There were no significant tax

equity contribution inflows in Q2 2023. In Q2

2022, we received tax equity contributions for

the wind part of Helena Energy Center.

Investments and divestments

Gross investments amounted to DKK 7.5 billion

in Q2 2023. The main investments were:

–

offshore wind farms (DKK 5.5 billion), includ-

ing Greater Changhua 1 and 2a in Taiwan

and our portfolio of US and German pro-

jects

–

onshore wind and solar PV farms (DKK 1.9

billion), including the construction of Eleven

Mile, Sunflower Wind, Mockingbird, and our

portfolio of European projects.

In Q2 2023, ‘Divestments’ amounted to DKK

-2.0 billion and was mainly related to our

Cash flow and net debt, DKKm Q2 2023 Q2 2022 %

Cash flows from operating activities

2,447 2,355 4 %

EBITDA

3,320 3,615 (8 %)

Reversal of gain (loss) on divestments of assets

(1,180) (21) n.a.

Change in derivatives, excl. variation margin

(2,224) 2,337 n.a.

Change in variation margin

2,325 (3,588) n.a.

Change in provisions

(39) (190) (79 %)

Other items

125 (89) n.a.

Interest expense, net

(362) (37) 878 %

Paid tax

(701) (288) 143 %

Change in work in progress

142 (1,423) n.a.

Change in tax equity partner liabilities

(512) 475 n.a.

Change in other working capital

1,554 1,564 (1 %)

Gross investments

(7,498) (6,372) 18 %

Divestments

(2,038) 267 n.a.

Free cash flow

(7,089) (3,750) 89 %

Net interest-bearing debt, beginning of period

35,261 30,026 17 %

Free cash flow

7,089 3,750 89 %

Dividends and hybrid coupon paid

88 5,411 (98 %)

Addition of lease obligations, net

521 1,084 (52 %)

Exchange rate adjustments, etc.

265 1,178 (78 %)

Net interest-bearing debt, end of period

43,924 41,449 6 %

Repurchase of hybrid capital, net

699 - n.a.

13/38

Management’s review

Interim financial report First half year 2023

Financial results Q2 2023

Power generation decreased by 8 % to 3.0

TWh in Q2 2023. The decrease was due to

lower wind speeds, lower availability, and the

50 % farm-down of Hornsea 2 in Q3 2022, only

partly offset by ramp-up at Greater Changhua

1 and 2a.

Wind speeds amounted to a portfolio average

of 8.1 m/s, which was lower than in Q2 2022

(8.4 m/s) and below the normal wind speeds

expected in the second quarter (8.6 m/s).

Availability ended at 91 %, which was 3 per-

centage points lower than in the same period

last year. This was mainly due to scheduled

outages and curtailment at Hornsea 2.

Revenue decreased by 34 % and amounted to

DKK 11.5 billion.

Revenue from offshore wind farms in operation

decreased by 6 % to DKK 4.5 billion, mainly

driven by lower generation. Revenue from

power sales decreased by 34 % to DKK 6.9

billion, due to significantly lower power prices

and lower volumes sold.

EBITDA increased by DKK 1.1 billion and

amounted to DKK 3.0 billion.

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

by DKK 1.1 billion and amounted to DKK 3.1

billion in Q2 2023. The increase was due to

ramp-up of generation at Greater Changhua 1

and 2a, higher prices on the inflation-indexed

CfD and ROC wind farms, lower balancing and

BSUoS costs, and a lower negative contribu-

tion from hedges. This was partly offset by

lower generation from Hornsea 2 due to the

farm-down and as the impact from wind was

negative by DKK 0.5 billion due to lower wind

speeds than in Q2 2022 (DKK 0.5 billion lower

than a normal wind year).

EBITDA from partnerships amounted to DKK

0.3 billion in Q2 2023, mainly from adjustment

of provisions toward partners partly offset by

a reduction in earnings on our construction

agreement on Greater Changhua 1 due to

higher costs and later commissioning of the

wind turbines.

EBITDA from other activities, including project

development, amounted to DKK -0.5 billion,

DKK 0.2 billion less negative than in Q2 2022.

Financial results

Q2 2023 Q2 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW

12.0 11.1 8 %

Installed capacity

8.9 7.6 17 %

Generation capacity

4.9 4.8 3 %

Wind speed

m/s

8.1 8.4 (4 %)

Load factor

29 35 (6 %p)

Availability

91 94 (3 %p)

Power generation

GWh

3,044 3,324 (8 %)

Denmark

371 385 (4 %)

United Kingdom

1,779 2,284 (22 %)

Germany

398 372 7 %

The Netherlands

288 262 10 %

APAC

190 1 n.a.

The US

18 20 (14 %)

Power sales GWh 6,739 7,416 (9 %)

Power price, LEBA UK

GBP/MWh

105 188 (44 %)

British pound

DKK/GBP

8.6 8.8 (2 %)

Financial performance



Revenue

DKKm

11,522 17,336 (34 %)

Sites, O&M, and PPAs

4,490 4,756 (6 %)

Power sales

6,851 10,355 (34 %)

Construction agreements

(14) 2,356 n.a.

Other

195 (131) n.a.

EBITDA

DKKm

2,979 1,904 56 %

Sites, O&M, and PPAs

3,135 2,031 54 %

Construction agreements and divestment gains 340 601 (43 %)

Other, incl. project development (496) (728) (32 %)

Depreciation

DKKm

(1,761) (1,671) 5 %

EBIT

DKKm

1,218 233 423 %

Cash flow from operating activities

DKKm

1,193 46 n.a.

Gross investments

DKKm

(5,480) (5,257) 4 %

Divestments

DKKm

(2,007) 176 n.a.

Free cash flow DKKm

(6,294) (5,035) 25 %

Capital employed DKKm

106,180 80,485 32 %

H1 2023

12.0

8.9

4.9

9.5

8,206

969

5,195

964

700

332

17,381

125

8.5

33,666

10,330

22,350

558

428

8,391

8,994

298

(901)

(3,454)

4,937

10,799

(11,493)

(2,028)

(2,722)

106,180

H1 2022

11.1

7.6

4.8

9.9

7,826

1,026

5,146

936

662

16,582

219

8.8

37,142

8,619

24,332

4,095

7,823

5,727

3,227

(1,131)

(3,192)

4,631

(2,160)

(10,805)

2,121

(10,844)

80,485

8 %

17 %

3 %

(4 %)

(3 %p)

(1 %p)

5 %

(6 %)

1 %

3 %

6 %

n.a.

(16 %)

5 %

(43 %)

(4 %)



(9 %)

20 %

(8 %)

(86 %)

346 %

7 %

57 %

(91 %)

(20 %)

8 %

7 %

n.a.

6 %

n.a.

(75 %)

32 %

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

Offshore

14/38

Management’s review

Interim financial report First half year 2023

Financial results Q2 2023

Power generation from our operating onshore

assets decreased by 12 % compared to Q2

2022 and amounted to 3.3 TWh. The decrease

was due to significantly lower wind speeds.

This was only partly offset by the commission-

ing of Ford Ridge and ramp-up of generation at

Old 300.

Revenue decreased by 14 % compared with Q2

2022 and amounted to DKK 0.6 billion. The

decrease was mainly due to the lower genera-

tion mentioned above and lower prices across

the portfolio.

EBITDA for Q2 2023 amounted to DKK 0.8

billion, DKK 0.3 billion lower than in the same

period last year. The decrease was due to low-

er prices, especially in the UK and Ireland, and

the lower generation in the US, due to the low-

er wind speeds.

Onshore

Q2 2023 Q2 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW 6.2 4.9 27 %

Installed capacity

4.6 4.0 15 %

Wind speed

m/s

6.7 7.8 (15 %)

Load factor, wind

35 48 (13 %p)

Load factor, solar PV

30 31 (1 %p)

Availability, wind

92 92 (0 %p)

Availability, solar PV

98 99 (1 %p)

Power generation

GWh

3,321 3,795 (12 %)

US, wind

2,454 3,057 (20 %)

US, solar PV

668 567 18 %

Europe

199 171 17 %

US dollar DKK/USD

6.8 7.0 (2 %)

Financial performance

Revenue

DKKm

625 730 (14 %)

EBITDA

DKKm

792 1,075 (26 %)

Sites

292 571 (49 %)

Production tax credits and tax attributes 637 679 (6 %)

Other, incl. project development (137) (175) (22 %)

Depreciation

DKKm

(458) (382) 20 %

EBIT

DKKm

334 693 (52 %)

Cash flow from operating activities

DKKm

(359) 1,294 n.a.

Gross investments

DKKm

(1,917) (997) 92 %

Divestments

DKKm

(1) 44 n.a.

Free cash flow DKKm (2,277) 341 n.a.

Capital employed DKKm

34,308 21,671 58 %

H1 2023

6.2

4.6

7.4

7,071

5,509

1,031

531

6.9

1,346

1,626

616

1,396

(386)

(899)

727

(501)

(4,585)

(5,084)

34,308

H1 2022

4.9

4.0

7.9

6,998

5,732

856

410

6.8

1,420

1,925

1,067

1,247

(389)

(740)

1,185

1,106

(2,218)

(1,068)

21,671

27 %

15 %

(6 %)

(7 %p)

(2 %p)

(3 %p)

(1 %p)

1 %

(4 %)

21 %

30 %

1 %

(5 %)

(16 %)

(42 %)

12 %

(1 %)

21 %

(39 %)

n.a.

107 %

(97 %)

376 %

58 %

15/38

Management’s review

Interim financial report First half year 2023

Financial results Q2 2023

Heat generation decreased by 4 % in Q2 2023,

and power generation decreased by 17 %,

mainly due to less attractive spreads for power

condensing generation and warmer weather.

Gas sales and power sales decreased by 55 %

and 62 %, respectively, due to no volumes be-

ing delivered due to the termination of the

Gazprom Export sourcing contract as the con-

tract has been terminated during Q1 2023, and

a gradual phase-out of our remaining UK B2B

activities.

Revenue decreased by 51 % compared to Q2

2022 and amounted to DKK 4.5 billion. The

decrease was driven by significantly lower gas

and power sales and lower prices.

EBITDA amounted to DKK -0.6 billion com-

pared to DKK 0.6 billion in Q2 2022.

EBITDA from CHP plants was DKK -0.2 billion,

DKK 0.9 billion lower than in Q2 2022. This was

due to the lower generation and market-based

spreads mentioned above. In addition, earnings

from power generation were negatively im-

pacted by the high costs of biomass and coal

relative to the market prices in Q2 2023 as the

cost is measured using the first in, first out

(FIFO) principle. The fuel we have been using

during Q2 2023 was bought last year at the

higher price levels. The opposite was the case

in Q2 2022.

EBITDA from ‘Gas Markets & Infrastructure’

decreased by DKK 0.3 billion relative to Q2

2022 ending at a loss of DKK 0.3 billion. The

decrease was, to a large extent, driven by a

temporary negative effect from revaluation of

our gas at storage during Q2 2023.

Bioenergy & Other

Financial results

Q2 2023 Q2 2022 %

Business drivers 

Degree days Number 409 448 (9 %)

Heat generation

GWh

790 823 (4 %)

Power generation

GWh

917 1,102 (17 %)

Gas sales

GWh

4,016 8,891 (55 %)

Power sales

GWh

556 1,466 (62 %)

Gas price, TTF

EUR/MWh

35.1 95.6 (63 %)

Power price, DK

EUR/MWh

84.0 179.8 (53 %)

Green dark spread, DK

EUR/MWh

(37.7) (11.4) 232 %

Wood pellet spread, DK

EUR/MWh

(3.3) 34.1 n.a.

Financial performance

Revenue

DKKm

4,460 9,182 (51 %)

EBITDA

DKKm

(583) 647 n.a.

CHP plants (244) 619 n.a.

Gas Markets & Infrastructure (279) 66 n.a.

Other, incl. project development

(60) (38) 58 %

Depreciation DKKm

(170) (193) (12 %)

EBIT

DKKm

(753) 454 n.a.

Cash flow from operating activities

DKKm

984 1,326 (26 %)

Gross investments

DKKm

(89) (107) (17 %)

Divestments

DKKm

(3) 6 n.a.

Free cash flow

DKKm

892 1,225 (27 %)

Capital employed DKKm

5,414 (1,385) n.a.

H1 2023

1,566

3,968

2,614

8,484

1,433

44.6

93.6

(36.4)

4.3

11,350

(66)

601

(516)

(151)

(410)

(476)

(145)

(3)

(86)

5,414

H1 2022

1,589

4,066

3,240

21,883

3,156

95.6

165.4

(5.9)

27.1

23,656

3,161

2,442

791

(72)

(382)

2,779

3,765

(158)

(2)

3,605

(1,385)

(1 %)

(2 %)

(19 %)

(61 %)

(55 %)

(53 %)

(43 %)

521 %

(84 %)



(52 %)

n.a.

(75 %)

n.a.

110 %

7 %

n.a.

(98 %)

(8 %)

50 %

n.a.

16/38

Management’s review

Interim financial report First half year 2023

Financials, DKKm

H1 2023 H1 2022 2022

Income statement

Revenue

45,846 60,057 132,277

EBITDA

10,230 13,044 32,057

Offshore

8,391 7,823 19,569

Sites, O&M, and PPAs

8,994 5,727 9,940

Construction agreements and divestment gains

298 3,227 12,277

Other, incl. project development

(901) (1,131) (2,648)

Onshore

1,626 1,925

3,644

Bioenergy & Other

(66) 3,161 8,619

Other activities/eliminations

279 135 225

Depreciation and amortisation

(4,892) (4,432) (9,754)

Impairment

- - (2,529)

Operating profit (loss) (EBIT)

5,338 8,612 19,774

Gain (loss) on divestment of enterprises

328 175 331

Net financial income and expenses

(3,316) (1,334) (2,536)

Profit (loss) before tax

2,372 7,454 17,609

Tax

292 (1,484) (2,613)

Profit (loss) for the period

2,664 5,970 14,996

Balance

Assets 296,466 320,722 314,142

Equity

103,548 61,276 95,532

Shareholders in Ørsted A/S

82,379 40,091 71,743

Hybrid capital

19,103 17,984 19,793

Non-controlling interests

2,066 3,201 3,996

Interest-bearing net debt

43,924 41,449 30,571

Capital employed

147,471 102,725 126,103

Additions to property, plant, and equipment

14,902 13,851 33,662

Cash flow

Cash flow from operating activities

12,566 2,318 11,924

Gross investments

(16,266) (13,204) (37,447)

Divestments

(2,054) 2,194 25,636

Free cash flow

(5,754) (8,692) 113

Financial ratios

Return on capital employed (ROCE)

, % 13.2 14.8 16.8

FFO/adjusted net debt

, % 17.7 39.0 42.7

Number of outstanding shares, end of period, '000

420,381 420,381 420,381

Share price, end of period, DKK

645 742 631

Market capitalisation, end of period, DKK billion

271 312 265

Earnings per share (EPS), DKK

5.3 13.5 34.6

Dividend yield, %

- - 2.1

H1 2023 H1 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

4.9 4.8 4.7

Wind speed, m/s

9.5 9.9 9.5

Load factor, %

41 44 42

Availability, %

93 94 94

Power generation, GWh

8,206 7,826 16,483

Power sales, GWh

17,381 16,582 33,745

Onshore

Decided (FID'ed) and installed capacity, GW

6.2 4.9 6.2

Installed capacity, GW

4.6 4.0 4.2

Wind speed, m/s

7.4 7.9 7.4

Load factor, wind, %

40 47 40

Load factor, solar PV, %

24 26 25

Availability, wind, %

91 94 93

Availability, solar PV, %

98 99 98

Power generation, GWh

7,071 6,998 13,146

Bioenergy & Other

Degree days, number

1,566

1,589 2,548

Heat generation, GWh

3,968 4,066 6,368

Power generation, GWh

2,614 3,240 6,012

Power sales, GWh

1,433 3,156 5,399

Gas sales, GWh

8,484 21,883 31,637

ESG statements

Employees (FTE), end of period number

8,661 7,292 8,027

Total recordable injury rate (TRIR), YTD

2.6 2.8 3.1

Fatalities, number

- - -

Green share of energy generation, %

92 92 91

GHG emission (scope 1 & 2), Mtonnes

0.9 1.1 2.5

GHG intensity (scope 1 & 2), g CO

e/kWh 42 49 60

GHG emissions (scope 3), Mtonnes

2.9 6.3 11.0

Performance highlights

EBIT last 12 months.

2 FFO last 12 months.

17/38

Management’s review

Interim financial report First half year 2023

Quarterly overview

Financials, DKKm

2023

2022

2021

Income statement

Revenue 16,477 29,369 35,679 36,541 26,295 33,762 30,666 14,510

EBITDA 3,320 6,910 6,696 12,317 3,615 9,429 8,253 2,984

Offshore 2,979 5,412 2,094 9,652 1,904 5,919 5,244 1,304

Sites, O&M, and PPAs 3,135 5,859 3,746 467 2,031 3,698 3,983 1,822

Construction agreements and

divestment gains

340 (42) (715) 9,765 601 2,620 2,469 (9)

Other incl. project development (496) (405) (937) (580) (728) (399) (1,208) (509)

Onshore 792 834 852 867 1,075 850 530 413

Bioenergy & Other (583) 517 3,609 1,849 647 2,514 2,416 1,206

Other activities/eliminations 132 147 141 (51) (11) 146 63 61

Depreciation and amortisation (2,454) (2,438) (2,792) (2,530) (2,304) (2,128) (2,143) (1,939)

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

Operating profit (loss) (EBIT) 866 4,472 1,375 9,787 1,311 7,301 5,980 1,045

Gain (loss) on divestment of enterprises 159 169 32 124 67 108 (684) (22)

Net financial income and expenses (1,797) (1,519) (985) (217) (486) (848) (930) (351)

Profit (loss) before tax (763) 3,135 460 9,695 893 6,561 4,361 671

Tax 225 67 (789) (340) (624) (860) (1,103) (184)

Profit (loss) for the period (538) 3,202 (329) 9,355 269 5,701 3,258 487

Balance sheet

Assets 296,466 306,644 314,142 359,758 320,722 285,087 270,385 261,892

Equity 103,548 102,826 95,532 53,777 61,276 76,719 85,137 79,150

Shareholders in Ørsted A/S 82,379 78,551 71,743 32,413 40,091 55,704 64,072 58,129

Hybrid capital 19,103 19,793 19,793 17,984 17,984 17,984 17,984 17,984

Non-controlling interests 2,066 4,482 3,996 3,380 3,201 3,031 3,081 3,037

Interest-bearing net debt 43,924 35,261 30,571 45,701 41,449 30,026 24,280 21,211

Capital employed 147,471 138,087 126,103 99,478 102,725 106,745 109,416 100,361

Additions to property, plant, equipment 6,963 7,939 9,912 9,899 8,724 5,127 17,041 11,477

Cash flow

Cash flow from operating activities 2,447 10,119 20,915 (11,309) 2,355 (37) 668 246

Gross investments (7,498) (8,768) (9,826) (14,417) (6,372) (6,832) (11,752) (8,757)

Divestments (2,038) (16) 983 22,459 267 1,927 10,952 7

Free cash flow (7,089) 1,335 12,072 (3,267) (3,750) (4,942) (132) (8,504)

Financial ratios

Return on capital employed (ROCE)

, % 13.2 13.8 16.8 24.4 14.8 19.0 14.8 12.9

FFO/adjusted net debt

, % 17.7 37.4 42.7 35.3 39.0 37.5 26.3 42.5

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

645 583 631 608 742 849 835 849

Market capitalisation, end of period, DKK billion 271 245 265 255 312 357 351 357

Earnings per share (EPS), DKK (1.4) 6.7 1.2 22.3 0.3 13.2 7.5 1.1

Business drivers

2023

2022

2021

Offshore

Decided (FID'ed) and installed capacity, GW 12.0 11.1 11.1 11.1 11.1 10.9 9.8

Installed capacity, GW

8.9 8.9 8.9 7.6 7.6 7.6 7.6

Generation capacity, GW

4.7 4.7 5.3 4.8 4.2 4.0 4.0

Wind speed, m/s

10.9 10.7 7.7 8.4 11.3 10.6 7.6

Load factor, %

53 54 28 35 54 53 27

Availability, %

95 95 91 94 95 95 93

Power generation, GWh

5,162 5,411 3,246 3,324 4,502 4,452 2,286

Power sales, GWh

10,642 11,563 5,600 7,416 9,166 8,791 4,803

Onshore

Decided (FID'ed) and installed capacity, GW

6.2 6.2 5.1 4.9 4.7 4.7 4.7

Installed capacity, GW

4.5 4.2 4.2 4.0 3.6 3.4 3.0

Wind speed, m/s

8.1 7.7 6.0 7.8 7.9 7.9 6.4

Load factor, wind, %

45 40 28 47 47 47 33

Availability, wind, %

91 91 92 92 96 96 98

Power generation, GWh

3,750 3,425 2,723 3,795 3,203 2,818 1,904

Bioenergy & Other

Degree days, number

1,157 861 98 448 1,141 927 81

Heat generation, GWh

3,178 2,064 239 823 3,243 2,467 402

Power generation, GWh

1,697 1,409 1,363 1,102 2,138 2,096 1,028

Power sales, GWh

877 904 1,339 1,466 1,690 2,072 2,271

Gas sales, GWh

4,468 4,048 5,706 8,891 12,993 13,744 13,580

ESG statements

Employees (FTE) end of period, number

8,422 8,027 7,681 7,292 7,016 6,836 6,672

Total recordable injury rate (TRIR), YTD

2.7 3.1 3.3 2.8 1.3 3.0 3.0

Fatalities, number

- - - - - - -

Green share of energy generation, %

89 88 89 93 92 93 89

GHG intensity (scope 1 & 2), g CO

e/kWh

52 62 88 49 48 45 91

GHG emissions (scope 3), Mtonnes

1.5 1.5 3.1 2.6 3.7 3.9 4.4

2023

12.0

8.9

4.9

8.1

3,044

6,739

6.2

4.6

6.7

3,321

409

790

917

556

4,016

8,661

2.6

1.3

Load factor, solar PV, %

30 16 17 32 31 21 19 27

Availability, solar PV, %

98 99 99 96 99 99 99 98

GHG emissions (scope 1 & 2), Mtonnes

0.2 0.7 0.8 0.7 0.4 0.6 0.5 0.5

EBIT last 12 months.

2 FFO last 12 months.

18/38

Management’s review

Interim financial report First half year 2023

Consolidated

financial statements

First half year 2023

1 January – 30 June

Consolidated financial statements

Interim financial report First half year 2023

19/38

Consolidated statements of income

1 January – 30 June

’Value adjustments for the period’ in the first half year of 2023 are mainly a

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

Statement of comprehensive income

DKKm H1 2023 H1 2022

Profit (loss) for the period 2,664 5,970

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period 17,756 (38,560)

Value adjustments transferred to income statement (251) 7,606

Value adjustments transferred to balance sheet - (69)

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises 1,113 825

Value adjustment of net investment hedges (456) (716)

Value adjustments and hedges transferred to income statement (59) -

Tax:

Tax on hedging instruments (3,662) 6,046

Tax on exchange rate adjustments (221) 398

Other:

Share of other comprehensive income of associated companies, after tax 3 37

Other comprehensive income 14,223 (24,433)

Total comprehensive income 16,887 (18,463)

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S 16,418 (18,743)

Interest payments and costs, hybrid capital owners of Ørsted A/S 195 293

Non-controlling interests 274 (13)

Total comprehensive income 16,887 (18,463)

Note

Income statement

DKKm H1 2023 H1 2022

3 Revenue 45,846 60,057

Cost of sales (32,002) (43,836)

Other external expenses (3,064) (2,848)

Employee costs (3,322) (2,434)

Share of profit (loss) in associates and joint ventures 37 56

4 Other operating income 3,234 3,433

4 Other operating expenses (499) (1,384)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 10,230 13,044

Amortisation, depreciation, and impairment losses on intangible

assets, and property, plant, and equipment (4,892) (4,432)

Operating profit (loss) (EBIT)

5,338 8,612

Gain (loss) on divestment of enterprises 328 175

Share of profit (loss) in associates and joint ventures 22 1

5 Financial income 3,921 3,091

5 Financial expenses (7,237) (4,425)

Profit (loss) before tax

2,372 7,454

8 Tax on profit (loss) for the period 292 (1,484)

Profit (loss) for the period

2,664 5,970

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S 2,214 5,688

Interests and costs, hybrid capital owners of Ørsted A/S 195 293

Non-controlling interests 255 (11)

Earnings per share (DKK) 5.3 13.5

Diluted earnings per share (DKK) 5.3 13.5

Consolidated financial statements

Interim financial report First half year 2023

20/38

Consolidated statements of income (continued)

1 April – 30 June

’Value adjustments for the period’ in Q2 2023 are mainly a result of gains on

power hedges due to a decrease in power prices.

Statement of comprehensive income

DKKm Q2 2023 Q2 2022

Profit (loss) for the period (538) 269

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period 4,793 (15,599)

Value adjustments transferred to income statement 300 1,914

Value adjustments transferred to balance sheet - (37)

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises 1,042 877

Value adjustment of net investment hedges (368) (675)

Value adjustments and hedges transferred to income statement (59) -

Tax:

Tax on hedging instruments (983) 2,704

Tax on exchange rate adjustments (153) 286

Other:

Share of other comprehensive income of associated companies, after tax 2 28

Other comprehensive income 4,574 (10,502)

Total comprehensive income 4,036 (10,233)

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S 3,946 (10,370)

Interest payments and costs after tax, hybrid capital owners of Ørsted A/S 50 148

Non-controlling interests 40 (11)

Total comprehensive income 4,036 (10,233)

Note

Income statement

DKKm Q2 2023 Q2 2022

3 Revenue 16,477 26,295

Cost of sales (11,658) (19,289)

Other external expenses (1,435) (1,673)

Employee costs (1,782) (1,268)

Share of profit (loss) in associates and joint ventures (25) 1

4 Other operating income 2,138 857

4 Other operating expenses (395) (1,308)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 3,320 3,615

Amortisation, depreciation, and impairment losses on intangible

assets, and property, plant, and equipment (2,454) (2,304)

Operating profit (loss) (EBIT) 866 1,311

Gain (loss) on divestment of enterprises 159 67

Share of profit (loss) in associates and joint ventures 9 1

5 Financial income 835 2,028

5 Financial expenses (2,632) (2,514)

Profit (loss) before tax (763) 893

8 Tax on profit (loss) for the period 225 (624)

Profit (loss) for the period (538) 269

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S (596) 132

Interests and costs, hybrid capital owners of Ørsted A/S 50 148

Non-controlling interests 8 (11)

Earnings per share (DKK) (1.4) 0.3

Diluted earnings per share (DKK) (1.4) 0.3

Consolidated financial statements

Interim financial report First half year 2023

21/38

Consolidated balance sheet

30 June

Note

Assets

DKKm

30 June

2023

31 December

2022

30 June

2022

Intangible assets 3,156 4,029 1,406

Land and buildings 8,255 7,980 8,043

Production assets 122,495 119,211 115,694

Fixtures and fittings, tools, and equipment 1,909 1,543 1,604

Property, plant, and equipment under construction 54,538 48,931 48,957

Property, plant, and equipment 187,197 177,665 174,298

Investments in associates and joint ventures 964 772 755

Receivables from associates and joint ventures 44 - -

Other securities and equity investments 172 182 233

10 Derivatives 1,374 1,804 10,188

Deferred tax 9,881 13,719 20,874

Other receivables 3,370 3,243 2,876

Other non-current assets 15,805 19,720 34,926

Non-current assets 206,158 201,414 210,630

Inventories 12,499 14,103 18,724

10 Derivatives 13,382 23,433 42,011

Contract assets 452 408 2,051

Trade receivables 6,864 12,701 8,630

Other receivables 13,543 20,289 12,223

8 Income tax 244 419 617

10 Securities 31,458 25,197 19,508

Cash 11,866 16,178 5,093

Current assets 90,308 112,728 108,857

Assets classified as held for sale - - 1,235

Assets 296,466 314,142 320,722

Note

Equity and liabilities

DKKm

30 June

2023

31 December

2022

30 June

2022

Share capital 4,204 4,204 4,204

7 Reserves (12,266) (26,467) (49,246)

Retained earnings 90,441 88,331 85,133

Proposed dividends - 5,675 -

Equity attributable to shareholders in Ørsted A/S 82,379 71,743 40,091

Hybrid capital 19,103 19,793 17,984

Non-controlling interests 2,066 3,996 3,201

Equity 103,548 95,532 61,276

Deferred tax 4,943 7,414 7,149

Provisions 18,320 19,121 14,500

Lease liabilities 7,818 7,697 7,787

11 Bond and bank debt 76,636 60,451 46,467

10 Derivatives 16,673 24,121 33,414

Contract liabilities 3,030 3,085 3,159

Tax equity liabilities 12,445 14,490 14,533

Other payables 6,589 7,363 4,625

Non-current liabilities 146,454 143,742 131,634

Provisions 530 585 722

Lease liabilities 646 569 768

11 Bond and bank debt 2,669 2,830 11,992

10 Derivatives 13,950 33,438 77,302

Contract liabilities 2,307 2,269 1,258

Trade payables 12,006 20,641 20,412

Tax equity liabilities 2,865 1,903 1,691

Other payables 5,998 7,518 7,653

8 Income tax 5,493 5,115 5,504

Current liabilities 46,464 74,868 127,302

Liabilities 192,918 218,610 258,936

Liabilities relating to assets classified as

held for sale - - 510

Equity and liabilities 296,466 314,142 320,722

Consolidated financial statements

Interim financial report First half year 2023

22/38

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

Consolidated statement of shareholders’ equity

1 January – 30 June

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 - - 2,214 - 2,214 195 255 2,664 - - 5,688 - 5,688 293 (11) 5,970

Other comprehensive income:

Cash flow hedging - 17,505 - - 17,505 - - 17,505 - (31,023) - - (31,023) - - (31,023)

Exchange rate adjustments - 579 - - 579 - 19 598 - 111 - - 111 - (2) 109

Tax on other comprehensive income - (3,883) - - (3,883) - - (3,883) - 6,444 - - 6,444 - - 6,444

Share of other comprehensive income

of associated companies, after tax - - 3 - 3 - - 3 - - 37 - 37 - - 37

Total comprehensive income - 14,201 2,217 - 16,418 195 274 16,887 - (24,468) 5,725 - (18,743) 293 (13) (18,463)

Coupon payments, hybrid capital - - - - - (188) - (188) - - - - - (314) - (314)

Tax, hybrid capital - - - - - 2 - 2 - - - - - 21 - 21

Disposals, hybrid capital - - - - - (699) - (699) - - - - - - - -

Dividends paid - - 2 (5,675) (5,673) - (189) (5,862) - - 3 (5,255) (5,252) - (150) (5,402)

Additions, non-controlling interests - - - - - - 532 532 - - - - - - 283 283

Disposals, non-controlling interests - - (119) - (119) - (2,547) (2,666) - - - - - - - -

Other changes - - 10 - 10 - - 10 - - 14 - 14 - - 14

Equity at 30 June 4,204 (12,266) 90,441 - 82,379 19,103 2,066 103,548 4,204 (49,246) 85,133 - 40,091 17,984 3,201 61,276

Consolidated financial statements

Interim financial report First half year 2023

23/38

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 30 June 2023 includes ’Bank

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

DKK 3 million.

Consolidated statement of cash flows

1 January – 30 June

Note

Statement of cash flows

DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Operating profit (loss) before

depreciation, amortisation, and

impairment losses (EBITDA) 10,230 13,044 3,320 3,615

Reversal of gain (loss) on divestment

of assets (1,303) (1,884) (1,179) (21)

Change in derivatives

5,258 (5,215) 100 (1,251)

Change in provisions

(25) (955) (37) (190)

Other items

(45) (154) 123 (89)

Change in inventories 1,857 (2,979) 716 (2,481)

Change in contract assets and liabilities 113 (3,292) 728 (2,316)

Change in trade receivables 5,800 933 1,867 208

Change in other receivables 2,331 3,284 1,700 5,645

Change in trade payables (7,349) 539 (1,750) (554)

Change in tax equity liabilities (1,152) (21) (512) 475

Change in other payables (990) (209) (1,565) (361)

Interest received and similar items 4,276 2,943

1,235 1,693

Interest paid and similar items (4,939) (3,197) (1,598) (1,730)

Income tax paid (1,496) (519) (701) (288)

Cash flows from operating activities 12,566 2,318 2,447 2,355

Purchase of intangible assets and

property, plant, and equipment (16,077) (13,110) (7,305) (6,309)

Sale of intangible assets and property,

plant, and equipment 118 1,887 138 25

Acquisition of enterprises

- (26) - (26)

Divestment of enterprises

(30) 25 (32) 44

Purchase of associates and joint ventures

(124) - (124) -

Purchase of other equity investments

7 4 4 3

Purchase of securities

(12,266) (1,019) (4,355) (206)

Sale/maturation of securities

5,792 1,467 3,779 475

Change in other non-current assets

(10) (18) 3 (16)

Transactions with associates and

joint ventures (107) (54) (121) (24)

Dividends received and capital

reductions - 22 - 22

Cash flows from investing activities (22,697) (10,822) (8,013) (6,012)

Note DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Proceeds from raising of loans 16,095 20,363

1,241 13,804

Instalments on loans (606) (12,975) (57) (6,052)

Instalments on leases (347) (296) (159) (123)

Coupon payments on hybrid capital (188) (314) (43) (164)

Repurchase of hybrid capital (699) - (699) -

Dividends paid to shareholders in

Ørsted A/S (5,673) (5,252) - (5,252)

Transactions with non-controlling

interests (2,358) 115 (2,216) 158

Net proceeds from tax equity partners (108) (137)

(4) (86)

Collateral posted in relation to trading

of derivatives (12,520) (21,227) (4,642) (10,087)

Collateral released in relation to trading

of derivatives 10,489 25,424 4,606 13,765

Restricted cash and other changes 1,558 (921) (243) (1,949)

Cash flows from financing activities 5,643 4,780 (2,216) 4,014

Total net change in cash and

cash equivalents (4,488) (3,724) (7,782) 357

Cash and cash equivalents at the

beginning of the period 16,175 8,614 19,571 4,548

Total net change in cash and cash

equivalents (4,488) (3,724) (7,782) 357

Exchange rate adjustments of cash

and cash equivalents 176 86 74 71

Cash and cash equivalents at 30 June 11,863 4,976 11,863 4,976

Consolidated financial statements

Interim financial report First half year 2023

24/38

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 half

year 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 half year of 2023 are 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 have 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 half year 2023

25/38

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 2,623 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 33,061 1,368 11,389 45,818 28 45,846

Intra-group revenue 605 (22) (39) 544 (544)

Revenue 33,666 1,346 11,350 46,362 (516) 45,846

Cost of sales (22,093) (87) (10,045) (32,225) 223 (32,002)

Employee costs and other external expenses (4,518) (1,067) (1,372) (6,957) 571 (6,386)

Gain (loss) on disposal of non-current assets 1,303 - - 1,303 - 1,303

Additional other operating income and expenses (8) 1,437 2 1,431 1 1,432

Share of profit (loss) in associates and joint ventures 41 (3) (1) 37 - 37

EBITDA 8,391 1,626 (66) 9,951 279 10,230

Depreciation and amortisation

(3,454) (899) (410)

(4,763)

(129)

(4,892)

Operating profit (loss) (EBIT) 4,937 727 (476) 5,188 150 5,338

Key ratios

Intangible assets and property, plant, and equipment 121,031 60,157 7,859 189,047 1,306 190,353

Equity investments and non-current receivables 779 148 92 1,019 164 1,183

Net working capital, capital expenditures (3,390) (541) (97) (4,028) - (4,028)

Net working capital, work in progress 3,873 - - 3,873 - 3,873

Net working capital, tax equity - (14,105) - (14,105) - (14,105)

Net working capital, other items 4,908 693 931 6,532 1,155 7,687

Derivatives, net (10,845) (6,331) 564 (16,612) 745 (15,867)

Decommissioning obligations (10,645) (1,883) (2,103) (14,631) - (14,631)

Other provisions (1,678) (2) (678) (2,358) (1,861) (4,219)

Tax, net 3,726 (3,823) (1,154) (1,251) 940 (311)

Other receivables and other payables, net (1,579) (5) - (1,584) (880) (2,464)

Capital employed at 30 June 106,180 34,308 5,414 145,902 1,569 147,471

Return on capital employed (ROCE), % - - - - - 13.2

Cash flow from operating activities 10,799 (501) 62 10,360 2,206 12,566

Gross investments (11,493) (4,585) (145) (16,223) (43) (16,266)

Divestments (2,028) 2 (3) (2,029) (25) (2,054)

Free cash flow (FCF) (2,722) (5,084) (86) (7,892) 2,138 (5,754)

Consolidated financial statements

Interim financial report First half year 2023

26/38

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 3,607 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 33,335 1,420 25,288 60,043 14 60,057

Intra-group revenue 3,807 - (1,632) 2,175 (2,175)

Revenue 37,142 1,420 23,656 62,218 (2,161) 60,057

Cost of sales (26,544) (21) (19,421) (45,986) 2,150 (43,836)

Employee costs and other external expenses (3,560) (767) (1,103) (5,430) 148 (5,282)

Gain (loss) on disposal of non-current assets 1,836 43 5 1,884 - 1,884

Additional other operating income and expenses (1,104) 1,249 22 167 (2) 165

Share of profit (loss) in associates and joint ventures 53 1 2 56 - 56

EBITDA 7,823 1,925 3,161 12,909 135 13,044

Depreciation and amortisation

(3,192) (740) (382)

(4,314)

(118)

(4,432)

Operating profit (loss) (EBIT) 4,631 1,185 2,779 8,595 17 8,612

Key ratios

Intangible assets and property, plant, and equipment 116,493 49,964 7,903 174,360 1,344 175,704

Assets classified as held for sale, net - - 741 741 - 741

Equity investments and non-current receivables 642 45 129 816 208 1,024

Net working capital, capital expenditures (7,975) (521) (32) (8,528) - (8,528)

Net working capital, work in progress 8,070 - - 8,070 - 8,070

Net working capital, tax equity - (14,787) - (14,787) - (14,787)

Net working capital, other items 7,932 62 1,243 9,237 1,034 10,271

Derivatives, net (43,155) (7,236) (9,636) (60,027) 1,510 (58,517)

Decommissioning obligations (6,314) (1,577) (1,415) (9,306) - (9,306)

Other provisions (2,388) (11) (1,310) (3,709) (2,207) (5,916)

Tax, net 11,445 (4,258) 989 8,176 662 8,838

Other receivables and other payables, net (4,265) (10) 3 (4,272) (597) (4,869)

Capital employed at 30 June 80,485 21,671 (1,385) 100,771 1,954 102,725

Return on capital employed (ROCE), % - - - - - 14.8

Cash flow from operating activities (2,160) 1,106 3,765 2,711 (393) 2,318

Gross investments (10,805) (2,218) (158) (13,181) (23) (13,204)

Divestments 2,121 44 (2) 2,163 31 2,194

Free cash flow (FCF) (10,844) (1,068) 3,605 (8,307) (385) (8,692)

Consolidated financial statements

Interim financial report First half year 2023

27/38

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 1,185 million (Q2 2022: 1,639 million), which

primarily relates to our Shared Functions services as

well as our B2B business activities.

Q2 2023, income statement and FCF

DKKm Offshore Onshore

Bioenergy

& Other

Reporting

segments

Other

activities/

eliminations Total

External revenue 11,233 647 4,589 16,469 8 16,477

Intra-group revenue 289 (22) (129) 138 (138)

Revenue 11,522 625 4,460 16,607 (130) 16,477

Cost of sales (7,293) (42) (4,299) (11,634) (24) (11,658)

Employee costs and other external expenses (2,336) (426) (741) (3,503) 286 (3,217)

Gain (loss) on disposal of non-current assets 1,179 - - 1,179 - 1,179

Additional other operating income and expenses (73) 638 (1) 564 - 564

Share of profit (loss) in associates and joint ventures (20) (3) (2) (25) - (25)

EBITDA 2,979 792 (583) 3,188 132 3,320

Depreciation and amortisation (1,761) (458) (170) (2,389) (65) (2,454)

Operating profit (loss) (EBIT) 1,218 334 (753) 799 67 866

Cash flow from operating activities 1,193 (359) 984 1,818 629 2,447

Gross investments (5,480) (1,917) (89) (7,486) (12) (7,498)

Divestments (2,007) (1) (3) (2,011) (27) (2,038)

Free cash flow (FCF) (6,294) (2,277) 892 (7,679) 590 (7,089)

Q2 2022, income statement and FCF

DKKm

External revenue 15,990 730 9,570 26,290 5 26,295

Intra-group revenue 1,346 - (388) 958 (958)

Revenue 17,336 730 9,182 27,248 (953) 26,295

Cost of sales (12,252) (11) (7,970) (20,233) 944 (19,289)

Employee costs and other external expenses (1,997) (367) (577) (2,941) - (2,941)

Gain (loss) on disposal of non-current assets (27) 43 5 21 - 21

Additional other operating income and expenses (1,155) 680 5 (470) (2) (472)

Share of profit (loss) in associates and joint ventures (1) - 2 1 - 1

EBITDA 1,904 1,075 647 3,626 (11) 3,615

Depreciation and amortisation (1,671) (382) (193) (2,246) (58) (2,304)

Operating profit (loss) (EBIT) 233 693 454 1,380 (69) 1,311

Cash flow from operating activities 46 1,294 1,326 2,666 (311) 2,355

Gross investments (5,257) (997) (107) (6,361) (11) (6,372)

Divestments 176 44 6 226 41 267

Free cash flow (FCF) (5,035) 341 1,225 (3,469) (281) (3,750)

Consolidated financial statements

Interim financial report First half year 2023

28/38

Revenue was DKK 45,846 million. The

decrease of 24 % relative to the first half year

of 2022 was primarily driven by significantly

lower power and gas prices across all markets

as well as lower volumes of gas sold.

Revenue from construction agreements was

DKK 703 million in H1 2023 and mainly

related to the construction of Borkum

Riffgrund 3 for partners.

Income from government grants in Offshore

increased relative to the first half year of 2022

due to lower power prices, leading 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 4,801 830 3,717 - 9,348 4,959 1,046 5,304 - 11,309

Sale of power 20,800 1 255 (245) 20,811 23,232 - 3,225 (2,201) 24,256

Revenue from construction of wind farms and transmission assets 558 145 - - 703 4,095 - - - 4,095

Generation and sale of heat and steam - - 1,999 - 1,999 - - 1,710 - 1,710

Sale of gas - - 3,560 - 3,560 - - 12,337 - 12,337

Distribution and transmission - - 123 (1) 122 - - 121 (2) 119

O&M and other services 1,909 112 563 (286) 2,298 1,141 19 160 (13) 1,307

Total revenue from customers 28,068 1,088 10,217 (532) 38,841 33,427 1,065 22,857 (2,216) 55,133

Government grants 3,990 240 245 - 4,475 2,529 329 301 - 3,159

Miscellaneous revenue 1,608 18 888 16 2,530 1,186 26 498 55 1,765

Total revenue 33,666 1,346 11,350 (516) 45,846 37,142 1,420 23,656 (2,161) 60,057

Timing of revenue recognition from customers

At a point in time 22,200 1,088 6,241 (532) 28,997 24,955 1,065 13,694 (2,216) 37,498

Over time 5,868 - 3,976 - 9,844 8,472 - 9,163 - 17,635

Total revenue from customers 28,068 1,088 10,217 (532) 38,841 33,427 1,065 22,857 (2,216) 55,133

Consolidated financial statements

Interim financial report First half year 2023

29/38

3. Revenue (continued)

Revenue

DKKm Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q2 2023

total Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q2 2022

total

Generation of power 1,805 322 1,202 - 3,329 2,909 493 2,348 -

5,750

Sale of power 6,706 1 106 10 6,823

10,282 - 1,478 (966) 10,794

Revenue from construction of wind farms and transmission assets (14) 75 - - 61

2,356 - - - 2,356

Generation and sale of heat and steam - - 516 - 516

- - 504 - 504

Sale of gas - - 1,306 - 1,306 - - 5,004 (31) 4,973

Distribution and transmission - - 74 (1) 73

- - 54 - 54

O&M and other services 985 85 280 (147) 1,203 420 7 85 (11) 501

Total revenue from customers 9,482 483 3,484 (138) 13,311 15,967 500 9,473 (1,008) 24,932

Government grants 1,838 80 108 - 2,026 1,210 168 98 - 1,476

Miscellaneous revenue 202 62 868 8 1,140 159 62 (389) 55 (113)

Total revenue 11,522 625 4,460 (130) 16,477 17,336 730 9,182 (953) 26,295

Timing of revenue recognition from customers

At a point in time 6,643 483 2,318 (138) 9,306 10,138 500 6,010 (1,008) 15,640

Over time 2,839 - 1,166 - 4,005 5,829 - 3,463 - 9,292

Total revenue from customers 9,482 483 3,484 (138) 13,311 15,967 500 9,473 (1,008) 24,932

Consolidated financial statements

Interim financial report First half year 2023

30/38

4. Other operating income and expenses

Other operating income

‘Gain on divestment of assets’ in H1 2023 was

primarily related to adjustment of provisions

towards partners as well as other minor

adjustments to finalised projects.

In H1 2022, ’Gain on divestment of assets’

primarily concerned our 50 % farm-down of

Borkum Riffgrund 3.

The development in ’US tax credits and tax

attributes’ was mainly due to the newly

commissioned wind farms in 2022, which have

had full impact in H1 2023.

5. Financial income and expenses

The table shows net financial income and expenses corresponding to our

internal reporting.

‘Exchange rate adjustments, net’ is mainly affected by intercompany balances

between entities with different functional currency and does not impact the

statement of cash flows or interest-bearing net debt.

‘Value adjustments of derivatives, net’ and ‘Value adjustments of securities,

net’ were both impacted by the significant increase in interest rates in the first

half year of 2022, as we use interest rate swaps to adjust the maturity of our

bond portfolio and thereby reduce the interest rate risk of our bond portfolio.

Other operating income

DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Gain on divestment of assets 1,350 1,940 1,203 48

US tax credits and tax attributes 1,396 1,247 637 679

Other compensation 275 97 152 47

Miscellaneous operating income 213 149 146 83

Total other operating income 3,234 3,433 2,138 857

Other operating expenses

DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Ineffective hedges, etc. 414 1,260 350 1,260

Loss on divestment of assets 47 56 24 27

Miscellaneous operating expenses 38 68 21 21

Total other operating expenses 499 1,384 395 1,308

Net financial income and expenses

DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Interest expenses, net (869) (682) (468) (478)

Interest expenses, leasing (139) (115) (72) (70)

Interest element of provisions, etc. (352) (239) (175) (136)

Tax equity partner's contractual return (504) (563) (250) (326)

Value adjustments of derivatives, net (170) 1,116 (68) 720

Value adjustments of securities at market

value, net (141) (1,249) (60) (621)

Exchange rate adjustments, net (1,183) 379 (730) 401

Other financial income and expenses 42 19 26 24

Net financial income and expenses (3,316) (1,334) (1,797) (486)

Consolidated financial statements

Interim financial report First half year 2023

31/38

7. Reserves6. Gross and net investments

Gross and net investments

DKKm H1 2023 H1 2022 Q2 2023 Q2 2022

Cash flows from investing activities (22,697) (10,822) (8,013) (6,012)

Dividends received and capital reductions

reversed - (22) - (22)

Purchase and sale of securities, reversed 6,474 (448) 576 (269)

Loans to associates and joint ventures, reversed 45 - 45 -

Sale of non-current assets, reversed (88) (1,912) (106) (69)

Gross investments (16,266) (13,204) (7,498) (6,372)

Transactions with non-controlling interests in

connection with divestments and acquisitions (2,142) 282 (2,144) 198

Sale of non-current assets 88 1,912 106 69

Divestments (2,054) 2,194 (2,038) 267

Net investments (18,320) (11,010) (9,536) (6,105)

Reserves 2023

DKKm

Foreign

currency

translation

reserve

Hedging

reserve

Total

reserves

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

Exchange rate adjustments 1,094 - 1,094

Value adjustments of hedging reserve - 17,300 17,300

Value adjustments transferred to:

Revenue - (712) (712)

Other operating income - gain on divestment of assets (80) 21 (59)

Other operating expenses - 414 414

Financial income and expenses - 47 47

Tax:

Tax on hedging and currency adjustments (317) (3,566) (3,883)

Movement in comprehensive income for the period 697 13,504 14,201

Total reserves including tax at 30 June (28) (12,238) (12,266)

Total reserves excluding tax at 30 June (547) (14,683) (15,230)

Reserves 2022

DKKm

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

Exchange rate adjustments 827 - 827

Value adjustments of hedging reserve - (39,276) (39,276)

Value adjustments transferred to:

Revenue - 8,063 8,063

Financial income and expenses - (457) (457)

Property, plant, and equipment - (69) (69)

Tax:

Tax on hedging and currency adjustments 240 6,204 6,444

Movement in comprehensive income for the period 1,067 (25,535) (24,468)

Total reserves including tax at 30 June 2,542 (51,788) (49,246)

Total reserves excluding tax at 30 June 2,341 (65,128) (62,787)

Interim financial report First half year 2023

32/33

Consolidated financial statements

Tax on profit (loss) for the period

Tax on profit (loss) was DKK -292 million for

the first half year of 2023 compared to

DKK 1,484 million for the first half year of

2022.

Effective tax rate

The effective tax rate for the first half year of

2023 was -12 %. The effective tax rate was

affected by the reversal of the recognised

deferred tax liability in the US related to tax

Effective tax rate

The effective tax rate for the first half year 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

equity contributions for Ocean 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 the

solar centre Old 300 and the offshore

windfarm 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).

H1 2023 H1 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 796 n.a. (587) n.a.

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

Other adjustments (231) n.a. 304 n.a.

Remaining business 2,372 (273) 12 % 5,991 (1,201) 20 %

Effective tax for the period 2,372 292 (12) % 7,454 (1,484) 20 %

Consolidated financial statements

Interim financial report First half year 2023

33/38

For USD and NTD, we manage our

risk to a natural time spread bet-

ween front-end capital expenditures

and long-term revenue. We

therefore see our hedges increase

our net exposure in the five year

horizon and reduce our exposure in

the longer horizon.

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 2023 due to the

decrease in power prices.

The exposures are based on market

prices as of 30 June 2023.

Energy exposure 1 July 2023 - 30 June 2028

DKKbn

Currency exposure 1 July 2023 - 30 June 2028

DKKbn

9. Market risks

Due to decreases in energy prices in

2023, the loss on hedges and power

purchase agreements (PPAs) has

been reduced.

At 30 June 2023, the pre-tax loss of

the hedging reserve was DKK 14.7

billion, of which DKK 15.6 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 half year 2023

34/38

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 30 June 2023.

If intermittency-adjusted

power prices in Germany as

of 30 June 2023 increased

by 25 %, the market value

would decrease by

DKK 1,408 million.

Assets Liabilities

Fair value hierarchy

DKKm

Inventories Securities Derivatives Derivatives

2023

Quoted prices 1,395 - 7,370 8,278

Observable input - 31,458 6,816 12,520

Non-observable input - - 570 9,825

Total 30 June 2023 1,395 31,458 14,756 30,623

2022

Quoted prices 4,816 - 19,537 24,802

Observable input - 19,508 32,212 65,481

Non-observable input - - 450 20,433

Total 30 June 2022 4,816 19,508 52,199 110,716

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 614 (956)

Value adjustments through other

comprehensive income 4,399 (7,922)

Sales/redemptions 295 700

Purchases/issues (3) (1,910)

Transferred from quoted prices and

observable input - (2,483)

Transferred to quoted prices and observable

input 127 36

Market value at 30 June (9,255) (19,983)

Non-observable input per commodity

price input

DKKm 2023 2022

US power prices (6,063) (6,910)

German power prices (2,732) (6,565)

UK power prices (160) -

Irish power prices (316) -

Other power prices 106 (6,285)

Gas prices (90) (223)

Total (9,255) (19,983)

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) 526 385 1,066 (1,408) 1,408

Ireland (2023-2042) 588 409 1,091 (78) 78

US ERCOT (2022-2030) 251 87 868 (3,155) 3,358

US SPP (2022-2030) 199 134 377 (484) 658

US MISO (2022-2033) 321 224 477 (577) 551

Consolidated financial statements

Interim financial report First half year 2023

35/38

Interest-bearing net debt totalled DKK 43,924 million at 30 June 2023, which was an increase of

DKK 13,353 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 16,346 million, partly

countered by an increase in securities and cash of DKK 1,949 million.

11. Interest-bearing debt and FFO

Market value of bond and bank debt

At 30 June 2023, the market values of bond

and bank debts were DKK 65.8 billion and

DKK 8.2 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 %.

In June 2023, we issued a EUR 100 million blue

bond with maturity in 2028 and a fixed

interest rate of 3.625 %. The net proceeds

from the issuance will be allocated to

investments in offshore biodiversity.

Interest-bearing debt and interest-bearing assets

DKKm

30 June

2023

31 December

2022

30 June

2022

Interest-bearing debt:

Bank debt 8,591 8,913 14,049

Bond debt 70,714 54,368 44,410

Total bond and bank debt 79,305 63,281 58,459

Tax equity liability 1,205 1,236 1,437

Lease liability 8,464 8,266 8,555

Other interest-bearing debt:

Debt in connection with divestments 2,901 2,904 -

Debt from receiving collateral under credit support annexes 431 1,196 2,734

Other interest-bearing debt 166 824 724

Total interest-bearing debt 92,472 77,707 71,909

Interest-bearing assets:

Securities 31,458 25,197 19,508

Cash 11,866 16,178 5,093

Cash, not available for use 263 2,471 2,269

Other receivables:

Receivables from placing collateral under credit support

annexes 3,715 2,449 2,833

Receivables in connection with divestments 765 713 757

Other receivables 437 128 -

Total interest-bearing assets 48,548 47,136 30,460

Total net interest-bearing debt 43,924 30,571 41,449

Consolidated financial statements

Interim financial report First half year 2023

36/38

11. Interest-bearing debt and FFO (continued)

1 Last 12 months.

Adjusted interest-bearing net debt

DKKm

30 June

2023

31 December

2022

30 June

2022

Total interest-bearing net debt 43,924 30,571 41,449

50 % of hybrid capital 9,552 9,897 8,992

Other interest-bearing debt, add back (3,498) (4,924) (3,458)

Other interest-bearing receivables, add back 4,917 3,290 3,590

Cash and securities not available for distribution,

excluding repo loans 669 3,241 3,054

Total adjusted interest-bearing net debt 55,564 42,075 53,627

Funds from operations (FFO)/

adjusted interest-bearing net debt, %

30 June

2023

31 December

2022

30 June

2022

Funds from operations (FFO)/

adjusted interest-bearing net debt 17.7 % 42.7 % 39.0 %

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

30 June

2023

31 December

2022

30 June

2022

EBITDA 29,242 32,057 24,282

Change in provisions and other adjustments (1,174) (2,213) (2,128)

Change in derivatives 1,786 (8,687) (6,791)

Variation margin (add back) (5,855) 10,332 11,514

Reversal of gain (loss) on divestment of assets (10,304) (10,885) (4,127)

Income tax paid (2,240) (1,263) (712)

Interest and similar items, received/paid (972) (563) (85)

Reversal of interest expenses transferred to assets (472) (586) (812)

50 % of coupon payments on hybrid capital (202) (264) (237)

Dividends received and capital reductions 1 23 23

Funds from operations (FFO) 9,810 17,951 20,927

Consolidated financial statements

Interim financial report First half year 2023

37/38

Financial resources

DKK billion

12. Financial resources

risk that will occur if we gain on the

transaction.

We are trading under both types 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 30 June 2023, 3 % (2022: 31 %)

of our power and gas trades and 90 %

(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 30 June 2023, financial resources

amounted to DKK 85.2 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 blue bonds

denominated in EUR with proceeds equivalent

to DKK 0.7 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 85.2 billion

Collateral and margin postings

DKK billion

DKK 17.3 billion

DKK 10.6 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

June 2023, we had covered EUR 0.6 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 10.6 billion at

30 June 2023. The decrease was primarily dri-

ven by the large decrease in power and gas

prices. Collateral payments related to initial

margins and variation margins decreased by

DKK 2.3 billion and DKK 4.3 billion,

respectively, during the first half year and

amounted to DKK 6.8 billion at 30 June 2023.

The decrease in initial margins and variation

margins consists of DKK 6.3 billion in cash and

DKK 0.3 billion in bonds.

Consolidated financial statements

Interim financial report First half year 2023

38/38

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 - 30 June 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

30 June 2023 and of the results of the Group's

operations and cash flows for the period

1 January - 30 June 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, 10 August 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

19/38

Management’s review

Interim financial report First half year 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

Wind technicians onboard CTV in Taichung,

Taiwan

Publication

10 August 2023