Untitled

Interim financial report

First nine months 2023

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Interim financial report

First nine months 2023

Management’s review

Overview

Contents

Earnings call

In connection with the presentation of the interim

financial report, an earnings call for investors and

analysts will be held on Wednesday, 1 November

2023 at 14:00 CET:

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-for-the-first-nine-months-of-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, 9M 2023

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

At a glance ............................................................................................................ 5

Outlook 2023 ...................................................................................................... 6

Results 9M ............................................................................................................. 7

Results Q3 .............................................................................................................. 11

Business units’ Q3 results ............................................................................. 13

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

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

Consolidated statements of income 9M ........................................... 19

Consolidated statements of income Q3 ........................................... 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. Impairment ....................................................................................................... 30

5. Other operating income and expenses ......................................... 33

6. Financial income and expenses .......................................................... 33

7. Gross and net investments .................................................................... 34

8. Reserves ............................................................................................................. 34

9. Tax on profit (loss) for the period ....................................................... 35

10. Markets risks .................................................................................................. 36

11. Fair value measurement ......................................................................... 37

12. Interest-bearing net debt and FFO ................................................. 38

13. Financial resources .................................................................................... 40

14. Subsequent events .................................................................................... 41

Management’s statement

Statement by the Executive Board and the Board of Direc-

tors............................................................................................................................... 42

Financial statements

Consolidated financial statements

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Management’s review

Interim financial report First nine months 2023

already covered by the impairment losses and

excludes any potential reuse value of existing

contracted equipment.

Capital structure

The impairments and provisions mentioned

above will impact our capital structure. As a

direct consequence, we are taking measures to

support our capital structure and long-term

commitment to our credit rating. In addition to

cost-savings initiatives, such measures include

working capital improvements such as supply

chain financing, prioritisation of development

activities, portfolio rationalisation, and other

actions aimed at strengthening the company's

capital structure.

As part of the ongoing review of our US portfo-

lio, we will assess the potential implications for

our current long-term strategic build-out

ambition and financial targets.

We expect to update the market no later than

in the Q4 2023 results announcement, includ-

ing (if relevant) potential implications on our

long-term strategic ambition and financial

targets.

Financials

Operating profit (EBITDA) amounted to DKK

19.4 billion in 9M 2023, a DKK 6.0 billion de-

crease compared to the same period last year.

EBITDA excluding new partnerships increased

by DKK 1.0 billion to DKK 15.4 billion.

Impairment update

On 29 August 2023, we announced an antici-

pated impairment on our US portfolio of up to

DKK 16 billion.

Since the announcement, our US offshore wind

projects have experienced further negative

developments from adverse impacts related

to supply chain, increased interest rates, and

the lack of an OREC adjustment on Sunrise

Wind. The total impairment losses recognised

in the interim financial report for the first nine

months of 2023 amount to DKK 28.4 billion,

and the majority of these (DKK 19.9 billion)

relate to Ocean Wind 1.

Ocean Wind 1 and Ocean Wind 2

We have taken the decision to cease the

development of the Ocean Wind 1 and Ocean

Wind 2 projects. This is a consequence of

additional supplier delays further impacting

our project schedule and leading to an addi-

tional significant delay of the project. In addi-

tion, we have updated our view on certain

assumptions including tax credit monetisation

and the timing and likelihood of final construc-

tion permits. Finally, increases to long-dated

US interest rates have further deteriorated the

business case.

A provision of approximately DKK 8-11 billion

related to us ceasing the development of

Ocean Wind 1 will negatively impact our

EBITDA in Q4 2023. The provision relates to

potential contract cancellation fees not

CEO’s review

Review of US offshore wind portfolio

We have decided to cease development of

the Ocean Wind 1 and Ocean Wind 2 pro-

jects and have taken final investment deci-

sion on the Revolution Wind project. The

decisions are part of an ongoing review of

our US offshore wind portfolio.

Impairments

Due to adverse impacts relating to supply

chain, progress in investment tax credit (ITC)

guidance, increased interest rates, and the

lack of an OREC adjustment on Sunrise

Wind, we have recognised impairment losses

of DKK 28.4 billion in 9M 2023. The majority

of these (DKK 19.9 billion) relate to our US

offshore project Ocean Wind 1.

In addition to the impairment losses, a provi-

sion of approximately DKK 8-11 billion relat-

ed to us ceasing the development of Ocean

Wind 1 will negatively impact our EBITDA in

Q4 2023. The provision accounts for poten-

tial contract cancellation fees not already

covered by the impairment losses and ex-

cludes any potential reuse value of existing

contracted equipment.

Financials

Operating profit (EBITDA) for the first nine

months amounted to DKK 19.4 billion. Ex-

cluding new partnerships, EBITDA amounted

to DKK 15.4 billion, DKK 1.0 billion higher

than the same period last year.

Earnings from offshore sites in operation

stood strong in the first nine months and

increased by DKK 6.8 billion compared to

the same period last year. In contrast, earn-

ings in Bioenergy & Other decreased by DKK

4.9 billion following the very volatile and

elevated price levels in 2022.

We maintain our full-year EBITDA guidance

of DKK 20-23 billion excluding new partner-

ships and excluding the provision of approxi-

mately DKK 8-11 billion related to Ocean

Wind 1.

We are taking measures to support our capi-

tal structure and long-term commitment to

our credit rating. In addition to cost-savings

initiatives, such measures include working

capital improvements such as supply chain

financing, prioritisation of development ac-

tivities, portfolio rationalisation, and other

actions aimed at strengthening the compa-

ny's capital structure.

Highlights 

Ceased the development of Ocean Wind 1 and Ocean Wind 2 and

took final investment decision on Revolution Wind.

Management’s review

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Interim financial report

First nine months 2023

At South Fork in the US, we have installed the

offshore substation and all the foundations.

Loading of the components for the first wind

turbine was completed this Monday, and,

depending on weather, we expect to install

our first wind turbine this week, with all 12

expected to be installed by the end of 2023 or

early 2024.

We commissioned Sunflower Wind, an onshore

wind farm located in Marion County, Kansas,

the US. With Sunflower Wind, we now have

13 operational wind farms in the US, generat-

ing 832 MW in the Southwest Power Pool area.

Our green share of heat and power generation

amounted to 92 %.

Business development

In September, we signed an agreement to

farm down 50 % of Gode Wind 3 in Germany

to funds managed by Glennmont Partners. We

continue to see strong investor interest for

offshore wind farms, and we are very pleased

to once again welcome Glennmont as a co-

owner of one of our German offshore wind

farms.

We completed the divestment of our 25 %

ownership share of London Array to funds

managed by Schroders Greencoat.

We took final investment decision (FID) on the

704 MW Revolution Wind project, which we

own in a 50/50 partnership with Eversource.

Onshore construction has started, and off-

shore construction will start in 2024, with the

project expected to be completed in 2025.

Notwithstanding the impairment of DKK 3.3

billion that we recorded in our Q3 results,

Revolution Wind has an attractive forward-

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 in 2022 not being repeated.

Earnings in Onshore were slightly down as

ramp-up of generation from new assets was

more than offset by lower availability and

lower prices, especially in the UK and Ireland.

The significantly lower power and gas prices

have substantially reduced earnings in Bio-

energy & Other, which came in at around break

-even.

We maintain our full-year EBITDA guidance of

DKK 20-23 billion excluding earnings from new

partnerships and excluding the provision of

approximately DKK 8-11 billion related to

Ocean Wind 1.

Due to a later timing across our project portfo-

lio and the termination of investments on

Ocean Wind 1, our gross investment for 2023 is

now expected to amount to DKK 40-44 billion,

a reduction of DKK 4 billion.

Construction and operational progress

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

cessfully installed all 111 jacket foundations

and 100 wind turbines, of which 89 are now

commissioned and thus fully producing power

under the subsidy. The final construction work

is progressing, but due to the weather and lack

of installation vessel availability, we will not be

able to install all wind turbines before year-

end. We aim to install and commission the

remaining wind turbines during Q1 2024.

looking value creation with a forward-looking

spread to WACC above our guided range.

We acquired Eversource’s 50 % ownership

share of Lease Area 500, which is strategic to

Ørsted’s US offshore wind portfolio. In addition

to its proximity to existing Ørsted projects,

which creates construction and operational

efficiencies, the site also offers shallow water

depths and favourable wind speeds compared

to other sites in the US and globally. Located

approximately 40 km off the coast of south-

ern New England, the site can also serve four

markets, including Massachusetts, Rhode

Island, Connecticut, and New York.

Following a competitive divestment process,

we have signed an exclusivity agreement with

Cathay Life Insurance, selecting the Taiwan-

ese leading insurance company as preferred

bidder for the acquisition of a 50 % ownership

stake in total of our 583 MW Greater Chang-

hua 4 Offshore Wind Farm in Taiwan.

Mads Nipper

Group President & CEO

5/42

Interim financial report

First nine months 2023

At a glance

Key figures 9M 2023

Revenue DKK 64.9 bn

Gross investments DKK 25.5 bn

Capital employed DKK 121.3 bn

TRIR

2.9

ROCE, last 12 months (13.7 %)

Ørsted

EBITDA, DKKbn

19.4 (25.4)

87 %

0 %

13 %

Offshore

Onshore Bioenergy & Other

Green share of energy generation, %

2022 2023

Offshore

EBITDA, DKKbn

Availability, %

2022 2023

9.0

9.2

9.3

2022 2023 Norm

6.6

12.4

4.0

2022 2023

17.5

16.4

10.9

Wind speed, m/s

Onshore

EBITDA, DKKbn

Availability, wind, %

2022 2023

7.2

7.0

7.2

2022 2023 Norm

2.8

2.4

2022 2023

Wind speed, m/s

Bioenergy & Other

EBITDA, DKKbn

2022 2023

5.0

0.1

2022 2023

Green share of energy generation, %

Degree days, number

1,687

1,619

1,832

2022 2023 Norm

New partnerships

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

6/42

Management’s review

Interim financial report First nine months 2023

EBITDA

In 2023, EBITDA excluding new partnerships

and excluding the provision of approximately

DKK 8-11 billion related to Ocean Wind 1 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 de-

crease by approx. DKK 4.5 billion compared to

2022 rather than by approx. DKK 3 billion. In

addition, we have changed the directional

guidance for Onshore to be lower relative to

the results for 2022, mainly driven by lower

availability, outages at Western Trail, and

lower prices.

The provision related to us ceasing the devel-

opment of Ocean Wind 1 accounts for poten-

tial contract cancellation fees not already

covered by the impairment losses and ex-

cludes any potential reuse value of existing

contracted equipment.

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). A

further adverse development of the Sunrise

Wind project may potentially lead to us ceas-

ing the project and incurring cancellation fees,

thereby negatively impacting EBITDA.

Gross investments

Due to a later timing across our project port-

folio and the termination of investments on

Ocean Wind 1, our gross investment for 2023

is now expected to amount to DKK 40-44

billion, a reduction of DKK 4 billion.

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

Guidance

10 August

EBITDA, without new partnerships and

provisions related to Ocean Wind 1

21.1

20-23

Offshore 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

20-23

Significantly

higher

In line

Significantly

lower

50-54

Guidance

1 November

20-23

Significantly

higher

Lower

Significantly

lower

40-44

Outlook 2023

Forward-looking statements

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

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

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

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

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

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

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

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

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

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

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

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Management’s review

Interim financial report First nine months 2023

14.4

15.4

6.8

0.6

0.3

0.4

Other incl.

DEVEX

9M 2022 Sites Exist.

partnerships

Other incl.

DEVEX

CHPsSites OtherGas &

other

9M 2023

-1.5

-0.6

-3.8

-1.2

Financial results

Revenue

Power generation from offshore and onshore

assets increased by 5 % and totalled 21.7 TWh

in 9M 2023. The increase was due to ramp-up

of generation from Hornsea 2 and Greater

Changhua 1 and 2a, our onshore assets Old

300, Ford Ridge, and Sunflower Wind, the wind

part of Helena Energy Center, and the acquisi-

tion of Ostwind in Q4 2022. The ramp-up of

generation was partly offset by lower availa-

bility and the farm-down of Hornsea 2 in Q3

2022 and the divestment of London Array in

Q3 2023.

Heat generation decreased by 2 %, whereas

thermal power generation decreased by 26 %,

mainly due to warmer weather and less at-

tractive spreads for power condensing genera-

tion.

Our green share of generation amounted to

92 %, the same level as last year.

Revenue amounted to DKK 64.9 billion. The

decrease of 33 % relative to 9M 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 nine

months amounted to DKK 19.4 billion, DKK 6.0

billion lower than in 9M 2022. In both periods,

we had significant effects from gains on farm-

downs. In 9M 2023, we divested our ownership

share of London Array, whereas we farmed

down 50 % of Borkum Riffgrund 3 and Hornsea

2 in 9M 2022. EBITDA excl. new partnerships

was DKK 1.0 billion higher than in 9M 2022.

EBITDA from offshore sites amounted to DKK

13.0 billion, an increase of DKK 6.8 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 9M 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 a significant negative impact

from hedges in 9M 2022 that was not repeated

in 9M 2023. This was partly offset by a nega-

tive impact on our merchant exposure due to

declining prices after having lowered our

hedge ratios for 9M 2023 at a time when prices

were higher than the realised levels in the peri-

od.

EBITDA from existing partnerships amounted

to DKK 0.5 billion in 9M 2023, mainly from ad-

justment of provisions toward partners. This

was partly offset by a reduction in earnings

EBITDA excluding new partnerships, DKKbn

Results 9M

Financial results, DKKm 9M 2023 9M 2022 %

Revenue

64,869 96,598 (33 %)

EBITDA

19,403 25,361 (23 %)

- New partnerships

4,007 10,916 (63 %)

- EBITDA excl new partnerships

15,396 14,445 7 %

Depreciation and amortisation

(7,429) (6,962) 7 %

Operating profit (loss) (EBIT)

(16,448) 18,399 n.a.

Gain (loss) on divestment of enterprises

278 299 (7 %)

Financial items, net

(3,444) (1,551) 122 %

Profit (loss) before tax

(19,583) 17,149 n.a.

Tax

(315) (1,824) (83 %)

Tax rate

(2 %) 11% (13 %p)

Profit (loss) for the period

(19,898) 15,325 n.a.

Impairment losses

(28,422) - n.a.

from our construction agreement on Greater

Changhua 1 due to higher costs and later

commissioning of the wind turbines. In 9M

2022, we had positive earnings from work for

partners at Greater Changhua 1, from a rever-

sal of DKK 0.5 billion of the DKK 0.8 billion

warranty provision related to cable protec-

tion system issues at some of our offshore

wind farms towards our partners, recognised

in 2021, and from an adjustment to wake loss

provisions in our German portfolio.

EBITDA from our onshore business amounted

to DKK 2.4 billion in 9M 2023, DKK 0.3 billion

lower than in 9M 2022. Ramp-up of genera-

tion from new assets was more than offset by

lower prices in the US and in the UK and Ire-

land, 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, curtailment at

Offshore (DKK 5.9bn) Onshore

(DKK -0.3bn)

Bio & Other

(DKK -4.9bn)

Management’s review

8/42

Interim financial report

First nine months 2023

Lincoln Land, transmission line failure at West-

ern Trail, and technical issues at Haystack.

EBITDA from our CHP plants amounted to DKK

0.4 billion in 9M 2023, a decrease of DKK 3.8

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 9M

2023 as the cost is measured using the first in,

first out (FIFO) principle. The fuel we used dur-

ing 9M 2023 was bought last year at higher

price levels. The opposite was the case in 9M

2022.

EBITDA from our gas business totalled DKK 0.0

billion in 9M 2023, DKK 1.1 billion lower than in

the same period last year. The decrease was

driven by strong earnings in 9M 2022, where we

were able to lock in gains from optimising the

offtake flexibility in some of our sourcing con-

tracts and storages, which was partly offset by

our decision to unwind gas hedges related to

the Gazprom Export contract.

Impairment

Due to adverse impacts relating to supply

chain, progress in investment tax credit (ITC)

guidance, increased interest rates, and the lack

of an OREC adjustment on Sunrise Wind, we

have recognised impairment losses of DKK

28.4 billion in 9M 2023. The majority of these

(DKK 19.9 billion) relate to our US offshore pro-

ject Ocean Wind 1.

See note 4 in the financial statements for fur-

ther information.

EBIT

EBIT decreased by DKK 34.8 billion to

DKK -16.4 billion in 9M 2023, primarily due to

the impairment losses. EBIT excluding impair-

ments amounted to DKK 12.0 billion in 9M

2023. This was a decrease of DKK 6.4 billion

compared to 9M 2022, but an increase of DKK

0.5 billion excluding earnings from new part-

nerships in the two periods.

Financial income and expenses

Net financial income and expenses amounted

to DKK -3.4 billion compared to DKK -1.6 bil-

lion in 9M 2022. The higher net expenses were

mainly due to negative exchange rate adjust-

ments related to internal loans in 9M 2023

versus positive adjustments in 9M 2022 (no

impact on cash flow and NIBD).

Tax and tax rate

Tax on profit for the period amounted to

DKK 0.3 billion, DKK 1.5 billion lower than in

the same period last year. The tax rate was

-2 % and was affected by a non-taxable gain

on London Array, unrecognised deferred tax

assets related to impairment losses on our US

portfolio, and a reversal of a recognised de-

ferred tax liability in the US related to the tax

equity partnership for Ocean Wind 1 due to our

acquisition of PSEG’s 25 % equity stake in the

project.

Profit for the period

Profit for the period totalled DKK -19.9 billion,

DKK 35.2 billion lower than 9M 2022. The de-

crease was mainly due to impairment losses

and higher net financial expenses. Profit for the

period excluding impairment losses amounted

to DKK 8.5 billion.

Cash flows and net debt

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 22.4 billion in 9M 2023 compared to

DKK -9.0 billion in 9M 2022.

During 9M 2023, we released DKK 6.5 billion,

net, in variation margin payments on unreal-

ised hedges (part of ‘Change in variation mar-

gin’) and initial margin payments at clearing

houses (part of ‘Change in other working capi-

tal’) as a result of falling and less volatile pow-

er and gas prices. In 9M 2022, we tied up

DKK 24.3 billion:

–

The variation margin payments were a

cash inflow of DKK 4.4 billion versus a cash

outflow of 19.0 billion in 9M 2022

–

The initial margin payments were a cash

inflow of DKK 2.1 billion versus a cash out-

flow of DKK 5.3 billion in 9M 2022.

–

In 9M 2022, we issued parent company

guarantees in total of EUR 1 billion to re-

duce our initial margin payments and, to

some extent, variation margin payments.

Cash flow and net debt, DKKm 9M 2023 9M 2022 %

Cash flows from operating activities

22,362 (8,991) n.a.

EBITDA

19,403 25,361 (23 %)

Reversal of gain (loss) on divestments of assets

(5,053) (10,942) (54 %)

Change in derivatives, excl. variation margin

1,390 8,188 (83 %)

Change in variation margin

4,396 (18,990) n.a.

Change in provisions

124 (1,267) n.a.

Other items

(67) (180) (63 %)

Interest expense, net

(875) (509) 72 %

Paid tax

(2,130) (1,235) 72 %

Change in work in progress

1,039 2,441 (57 %)

Change in tax equity partner liabilities

901 (604) n.a.

Change in other working capital

3,234 (11,254) n.a.

Gross investments

(25,470) (27,621) (8 %)

Divestments

(319) 24,653 n.a.

Free cash flow

(3,427) (11,959) (71 %)

Net interest-bearing debt, beginning of period

30,571 24,280 26 %

Free cash flow

3,427 11,959 (71 %)

Dividends and hybrid coupon paid

6,173 5,824 6 %

Addition of lease obligations, net

965 1,016 (5 %)

Repurchase of hybrid capital, net

699 - n.a.

Net interest-bearing debt, end of period

42,892 45,701 (6 %)

Exchange rate adjustments, etc.

1,057 2,622 (60 %)

Management’s review

9/42

Interim financial report

First nine months 2023

portfolio of European projects.

In 9M 2023, ‘Divestments’ amounted to

DKK -0.3 billion and was mainly related to our

acquisition of Eversource’s 50 % ownership

share of Lease Area 500 and PSEG’s 25 % equi-

ty stake in Ocean Wind 1, both in the US, as

well as our divestment of London Array. As the

two acquisitions are with non-controlling

shareholders, they are not included in ‘Gross

investments’, but as part of ‘Divestments’. In

9M 2022, divestments amounted to DKK 24.7

billion and were mainly related to the 50 %

farm-downs of Hornsea 2 and Borkum

Riffgrund 3.

Interest-bearing net debt

Interest-bearing net debt totalled DKK 42.9

billion at the end of September 2023 against

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

crease was mainly due to dividend payments

of DKK 6.2 billion and negative free cash flow

of DKK 3.4 billion.

Equity

Equity was DKK 78.4 billion at the end of Sep-

tember 2023 against DKK 95.5 billion at the

end of 2022. The change in equity was primari-

ly due to the impairment losses of DKK 28.4

billion, whereas the post-tax hedging and cur-

rency translation reserve was reduced by

DKK 16.1 billion to DKK 10.4 billion at the end

of September.

Capital employed

Capital employed was DKK 121.3 billion at the

end of September 2023 against DKK 126.1 bil-

lion at the end of 2022, mainly due to impair-

ment losses only partly offset by new invest-

In 9M 2023, we had a net cash inflow from

work in progress of DKK 1.0 billion, mainly from

the divestment of the remaining 50 % of the

offshore transmission asset at Hornsea 2, part-

ly offset by construction work at Greater

Changhua 1. In 9M 2022, we had a net cash

inflow of DKK 2.4 billion, mainly from the di-

vestment of the first 50 % of the offshore

transmission asset at Hornsea 2 to our partner

and received milestone payments from part-

ners for Borkum Riffgrund 3. This was partly

offset by construction work at Greater Chang-

hua 1.

In 9M 2023, we received tax equity contribution

from partners for Sunflower Wind and South

Fork, and in 9M 2022, we received tax equity

contributions for the wind part of Helena Ener-

gy Center. This led to a cash inflow from tax

equity contributions in 9M 2023, net of the re-

versal of tax credits recognised in EBITDA,

compared to a net cash outflow last year.

Furthermore, ‘Change in other working capital’

was positively impacted by lower receivables

and the lower value of gas at storage due to

the falling prices in 9M 2023 in addition to the

aforementioned release of initial margin pay-

ments.

Investments and divestments

‘Gross investments’ amounted to DKK 25.5

billion in 9M 2023. The main investments were:

–

offshore wind farms (DKK 18.9 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 6.0

billion), including the construction of Eleven

Mile, Sunflower Wind, Mockingbird, and our

ments.

Financial ratios

Return on capital employed (ROCE)

Return on capital employed (ROCE) was -13.7

% in 9M 2023. The decrease of 38 percentage

points compared to last year was attributable

to a lower EBIT due to the impairment losses

during the period and higher capital employed.

The impairment losses in 2023 had an adverse

impact on ROCE of approx. 26 percentage

points.

Credit metric (FFO/adjusted net debt)

The funds from operations (FFO)/adjusted net

debt credit metric was 20.9 % in 9M 2023

against 35.3 % in 9M 2022. The decrease was

due to lower FFO.

ESG results

Green share of energy generation

The green share of heat and power generation

amounted to 92 % in 9M 2023, the same level

as in 9M 2022. The main changes compared to

9M 2022 were a 5 percentage point decrease

in sustainable biomass-based generation, fully

offset by increased offshore wind- and solar-

based power generation.

Greenhouse gas emissions

Our greenhouse gas emissions from heat and

power generation (scope 1 and 2) decreased by

28 % in 9M 2023 compared to 9M 2022. This

was primarily due to the decrease in the use of

Key ratios, DKKm, %

9M 2023 9M 2022 %

ROCE

(13.7) 24.4 (38 %p)

Adjusted net debt 55,247 58,047 (5 %)

FFO/adjusted net debt 20.9 35.3 (14 %p)

Capital employed

Offshore



Onshore



Bioenergy & Other



DKK 121.3 billion

3 %

28 %

69 %

Taxonomy-aligned KPIs

In 9M 2023, the taxonomy-aligned share of

revenue was 87 %, whereas the aligned

share of EBITDA was 99 %, gross invest-

ments was 98 %, and OPEX was 72 %. 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 9M 2023).

Read more about our EU taxonomy-

aligned KPIs in note 2.1 in the ESG Perfor-

mance Report for 9M 2023.

Management’s review

10/42

Interim financial report

First nine months 2023

coal at our CHP plants.

Our scope 1 and 2 greenhouse gas intensity

decreased to 43 g CO

e/kWh in 9M 2023

against 59 g CO

e/kWh in 9M 2022. The de-

crease was a result of a 28 % decrease in scope

1 emissions (numerator) in combination with

only a 1 % decrease in total heat and power

generation (denominator).

Greenhouse gas emissions from our supply

chain and sales activities (scope 3) were 53 %

lower than in 9M 2022, primarily due to a 50 %

reduction in natural gas sales in 9M 2023 and

lower emissions related to capital goods as we

only commissioned three onshore sites in 9M

2023.

Safety

In 9M 2023, we had 55 total recordable injuries

(TRIs), of which 42 injuries were related to con-

tractors’ employees. In total, this was a de-

crease of 9 injuries compared to 9M 2022. The

number of hours worked was 18.8 million hours,

a decrease of 3 % compared to 9M 2022. The

total recordable injury rate (TRIR) decreased

from 3.3 in 9M 2022 to 2.9 in 9M 2023.

Forest beech pine sustainable biomass,

Linå Vesterskov, Denmark

Management’s review

11/42

Interim financial report

First nine months 2023

3.0

5.2

3.6

0.3

0.2

Sites Other incl.

DEVEX

CHPsSitesQ3 2022 Exist.

partnerships

Other incl.

DEVEX

Gas &

other

Other Q3 2023

-1.9

-0.2 -0.3

Financial results

EBITDA

Operating profit (EBITDA) for the third quarter

amounted to DKK 9.2 billion, DKK 3.1 billion

lower than in Q3 2022. In Q3 2023, we divested

our ownership share in London Array with a

gain of DKK 4.0 billion, and in Q3 2022, we

farmed down 50 % of Hornsea 2 for a gain of

DKK 9.3 billion. Adjusted for these farm-down

effects, EBITDA was DKK 2.2 billion above Q3

2022.

Earnings from Offshore sites amounted to

DKK 4.1 billion, an increase of DKK 3.6 billion

compared to last year. The increase was main-

ly due to higher wind speeds, ramp-up of gen-

eration from Greater Changhua 1 and 2a, high-

er prices on the inflation-indexed CfD and ROC

wind farms, lower balancing and BSUoS costs,

and a significant negative impact from hedges

in Q3 2022 that was not repeated in Q3 2023.

This was only partly offset by the farm-down

of Hornsea 2 by the end of Q3 2022 and the

divestment of London Array, both resulting in

lower generation capacity.

EBITDA from partnerships amounted to DKK

4.2 billion in Q3 2023, mainly related to the

divestment of our ownership share in London

Array. In Q3 2022, we had positive earnings

from the 50 % farm-down of Hornsea 2 and

work for partners at Greater Changhua 1.

EBITDA from our Onshore business amounted

to DKK 0.8 billion and was slightly lower than

in Q3 2022. Ramp-up of generation from new

assets was more than offset by lower availa-

bility and lower prices, especially in the UK and

Ireland.

EBITDA from our CHP plants amounted to

DKK -0.2 billion in Q3 2023, a decrease of DKK

1.9 billion compared to the same period last

year. The decrease was mainly due to lower

power prices, unfavourable spreads for power

condensing generation, and warmer weather.

In addition to the unfavourable market-based

spreads, earnings were negatively impacted

by accounting FIFO effects as the fuel used in

Q3 2023 was bought last year at price levels

EBITDA excluding new partnerships, DKKbn

Results Q3

Financial results, DKKm Q3 2023 Q3 2022 %

Revenue

19,023 36,541 (48 %)

EBITDA

9,173 12,317 (26 %)

- New partnerships

4,007 9,346 (57 %)

- EBITDA excl new partnerships

5,166 2,971 74 %

Depreciation and amortisation

(2,537) (2,530) 0 %

Operating profit (loss) (EBIT)

(21,786) 9,787 n.a.

Gain (loss) on divestment of enterprises

(50) 124 n.a.

Financial items, net

(128) (217) (41 %)

Profit (loss) before tax

(21,955) 9,695 n.a.

Tax

(607) (340) 79 %

Tax rate

(3 %) 4% (7 %p)

Profit (loss) for the period

(22,562) 9,355 n.a.

Impairment losses

(28,422) - n.a.

above the current market prices. The oppo-

site was the case in Q3 2022.

EBITDA from our gas business totalled DKK

0.5 billion in Q3 2023, DKK 0.2 billion higher

than in the same period last year. To a large

extent, the increase was driven by a positive

effect from revaluation of our gas at storage

during Q3 2023.

Offshore

(DKK 3.7bn)

Onshore

(DKK 0.0bn)

Bio & Other

(DKK -1.7bn)

Management’s review

12/42

Interim financial report

First nine months 2023

–

offshore wind farms (DKK 5.5 billion), in-

cluding Greater Changhua 1 and 2a in Tai-

wan and our portfolio of US and German

projects

–

onshore wind and solar PV farms (DKK 1.5

billion), including the construction of Elev-

en Mile, Sunflower Wind, Mockingbird, and

our portfolio of European projects.

In Q3 2023, divestments amounted to DKK 1.7

billion and was mainly related to the divest-

ment of London Array and our acquisition of

Eversource’s ownership share of Lease Area

500 in the US. As this acquisition is with a non-

controlling shareholder, it is not included in

‘Gross investments’, but as part of

‘Divestments’.

Cash flows

Cash flows from operating activities

Cash flows from operating activities totalled

DKK 9.8 billion in Q3 2023 compared to

DKK -11.3 billion in Q3 2022.

During Q3 2023, we released DKK 0.2 billion,

net, in variation margin payments on unreal-

ised hedges (part of ‘Change in variation mar-

gin’) and initial margin payments at clearing

houses (part of ‘Change in other working capi-

tal’), whereas we tied up DKK 16.0 billion in Q3

2022 where prices increased sharply:

–

The variation margin payments were a

cash inflow of DKK 0.1 billion versus a cash

outflow of 8.5 billion in Q3 2022.

–

The initial margin payments were a cash

inflow of DKK 0.1 billion versus a cash out-

flow of DKK 7.5 billion in Q3 2022.

In Q3 2023, we had a net cash inflow from

work in progress of DKK 3.5 billion, mainly re-

lated to the divestment of the remaining 50 %

of the Hornsea 2 offshore transmission asset. In

Q3 2022, we had a net cash inflow of DKK 4.8

billion, mainly from divestment of the first 50 %

of the transmission asset at Hornsea 2 to our

partner and milestone payments received for

Greater Changhua 1.

In Q3 2023, cash inflow from change in tax

equity was related to contributions for Sun-

flower Wind in Onshore and South Fork in Off-

shore. There were no significant tax equity con-

tribution inflows in Q3 2022.

Investments and divestments

Gross investments amounted to DKK 9.2 billion

in Q3 2023. The main investments were:

Cash flow and net debt, DKKm Q3 2023 Q3 2022 %

Cash flows from operating activities

9,796 (11,309) n.a.

EBITDA

9,173 12,317 (26 %)

Reversal of gain (loss) on divestments of assets

(3,750) (9,058) (59 %)

Change in derivatives, excl. variation margin

428 2,875 (85 %)

Change in variation margin

100 (8,462) n.a.

Change in provisions

149 (312) n.a.

Other items

(22) (26) (15 %)

Interest expense, net

(212) (255) (17 %)

Paid tax

(634) (716) (11 %)

Change in work in progress

3,548 4,789 (26 %)

Change in tax equity partner liabilities

2,053 (583) n.a.

Change in other working capital

(1,037) (11,878) (91 %)

Gross investments

(9,204) (14,417) (36 %)

Divestments

1,735 22,459 (92 %)

Free cash flow

2,327 (3,267) n.a.

Net interest-bearing debt, beginning of period

43,924 41,449 6 %

Free cash flow

(2,327) 3,267 n.a.

Dividends and hybrid coupon paid

122 132 (8 %)

Addition of leasing obligations, net

416 (121) n.a.

Exchange rate adjustments, etc.

758 974 (22 %)

Net interest-bearing debt, end of period

42,892 45,701 (6 %)

13/42

Management’s review

Interim financial report First nine months 2023

Financial results for Q3 2023

Power generation increased by 9 % to 3.5 TWh

in Q3 2023. The increase was due to higher

wind speeds, higher availability, and ramp-up

at Greater Changhua 1 and 2a. This was only

partly offset by the 50 % farm-down of

Hornsea 2 by the end of Q3 2022.

Wind speeds amounted to a portfolio average

of 8.6 m/s, which was higher than in Q3 2022

(7.7 m/s) and higher than the normal wind

speeds expected in the third quarter (8.4 m/s).

Availability ended at 93 %, which was 2 per-

centage points higher than in the same period

last year. This was mainly due to scheduled

outages and curtailment at Hornsea 2 in Q3

2022.

Revenue decreased by 37 % and amounted to

DKK 15.8 billion.

Revenue from offshore wind farms in operation

increased by 15 % to DKK 4.5 billion, mainly

driven by higher generation. Revenue from

power sales decreased by 62 % to DKK 5.6

billion due to significantly lower power prices.

EBITDA decreased by DKK 1.6 billion and

amounted to DKK 8.0 billion.

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

by DKK 3.6 billion and amounted to DKK 4.1

billion in Q3 2023. The increase was due to

higher wind speeds (DKK 0.9 billion), 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 neutral effect from hedges in Q3

2023 versus a big negative contribution from

hedges in Q3 2022. This was only partly offset

by the farm-down of Hornsea 2 and the divest-

ment of London Array.

EBITDA from partnerships amounted to DKK

4.2 billion in Q3 2023, mainly related to the

divestment of our ownership share in London

Array. In Q3 2022, we had positive earnings

from the 50 % farm-down of Hornsea 2 and

work for partners at Greater Changhua 1.

EBITDA from other activities, including project

development, amounted to DKK -0.3 billion,

DKK 0.3 billion less negative than in Q3 2022.

Financial results Q3 2023 Q3 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW

12.0 11.1 8 %

Installed capacity

8.9 8.9 0 %

Generation capacity

5.0 5.3 (6 %)

Wind speed

m/s

8.6 7.7 12 %

Load factor

33 28 5 %p

Availability

93 91 2 %p

Power generation

GWh

3,544 3,246 9 %

Denmark

377 423 (11 %)

United Kingdom

2,259 2,212 2 %

Germany

379 387 (2 %)

The Netherlands

259 197 31 %

APAC

254 6 n.a.

The US

16 21 (27 %)

Power sales GWh 6,242 5,600 11 %

Power price, LEBA UK

GBP/MWh

98 361 (73 %)

British pound

DKK/GBP

8.7 8.7 (0 %)

Financial performance



Revenue

DKKm

15,847 25,057 (37 %)

Sites, O&M, and PPAs

4,549 3,963 15 %

Power sales

5,561 14,460 (62 %)

Construction agreements

5,247 6,629 (21 %)

Other

490 5 n.a.

EBITDA

DKKm

8,037 9,652 (17 %)

Sites, O&M, and PPAs

4,050 467 767 %

Construction agreements and divestment gains 4,245 9,765 (57 %)

Other, incl. project development (258) (580) (56 %)

Depreciation

DKKm

(1,733) (1,820) (5 %)

EBIT

DKKm

(20,684) 7,832 n.a.

Cash flow from operating activities

DKKm

4,405 (10,296) n.a.

Gross investments

DKKm

(7,430) (7,979) (7 %)

Divestments

DKKm

1,738 22,296 (92 %)

Free cash flow DKKm

(1,287) 4,021 n.a.

Capital employed DKKm

82,978 68,361 21 %

9M 2023

12.0

8.9

5.0

9.2

11,750

1,346

7,454

1,343

959

586

23,624

116

8.6

49,513

14,879

27,911

5,805

918

16,428

13,043

4,542

(1,157)

(5,187)

(15,747)

15,204

(18,923)

(290)

(4,009)

82,978

9M 2022

11.1

8.9

5.3

9.0

11,072

1,450

7,358

1,323

858

22,182

267

8.8

62,199

12,582

38,792

10,724

101

17,475

6,194

12,992

(1,711)

(5,012)

12,463

(12,456)

(18,784)

24,417

(6,823)

68,361

8 %

0 %

(6 %)

2 %

0 %p

(0 %p)

6 %

(7 %)

1 %

2 %

12 %

n.a.

(18 %)

6 %

(57 %)

(3 %)



(20 %)

18 %

(28 %)

(46 %)

809 %

(6 %)

111 %

(65 %)

(32 %)

3 %

n.a.

1 %

n.a.

(41 %)

21 %

Impairment losses

DKKm

(26,988) - n.a. (26,988) - n.a.

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

Offshore

14/42

Management’s review

Interim financial report First nine months 2023

Financial results for Q3 2023

Power generation from our operating onshore

assets increased by 7 % compared to Q3 2022

and amounted to 2.9 TWh. The increase was

due to ramp-up of generation at Sunflower,

Ford Ridge, and Old 300 in the US, various Irish

and UK farms, and the acquisition of Ostwind

at the end Q3 2022. This was only partly offset

by lower availability. The availability in the US

was lower, mainly due to Western Trail going

offline in August because of a transmission line

outage.

Revenue decreased by 19 % compared with Q3

2022 and amounted to DKK 0.7 billion. The

decrease was mainly due to lower prices

across the portfolio and a 7 % lower USD rate

than in Q3 2022.

EBITDA for Q3 2023 amounted to DKK 0.8

billion, which was slightly below Q3 2022. The

decrease was due to lower prices, especially in

Ireland and the UK.

In Q3 2023, we have reclassified costs related

to our operating assets from ‘Other including

project development’ to ‘Sites’ to align with

our methodology in Offshore (no impact on

total Onshore EBITDA).

Onshore

Financial results Q3 2023 Q3 2022 %

Business drivers

Decided (FID'ed) and installed capacity GW 6.2 5.1 23 %

Installed capacity

4.8 4.2 15 %

Wind speed

m/s

6.2 6.0 3 %

Load factor, wind

27 28 (0 %p)

Load factor, solar PV

32 32 0 %p

Availability, wind

85 92 (6 %p)

Availability, solar PV

98 96 2 %p

Power generation

GWh

2,927 2,723 7 %

US, wind

1,975 1,946 1 %

US, solar PV

708 676 5 %

Europe

244 101 142 %

US dollar DKK/USD

6.8 7.4 (7 %)

Financial performance

Revenue

DKKm

676 836 (19 %)

EBITDA

DKKm

819 867 (6 %)

Sites

246 610 (60 %)

Production tax credits and tax attributes 581 597 (3 %)

Other, incl. project development (8) (340) (98 %)

Depreciation

DKKm

(560) (456) 23 %

EBIT

DKKm

(1,175) 411 n.a.

Cash flow from operating activities

DKKm

1,121 364 208 %

Gross investments

DKKm

(1,460) (6,322) (77 %)

Divestments

DKKm

- (1) n.a.

Free cash flow DKKm (339) (5,959) (94 %)

Capital employed DKKm

33,322 28,340 18 %

9M 2023

6.2

4.8

7.0

9,999

7,484

1,740

775

6.9

2,022

2,445

862

1,977

(394)

(1,459)

(448)

620

(6,045)

(5,423)

33,322

9M 2022

5.1

4.2

7.2

9,721

7,678

1,532

511

7.0

2,256

2,792

1,677

1,844

(729)

(1,196)

1,596

1,470

(8,540)

(7,027)

28,340

23 %

15 %

(3 %)

(5 %p)

(1 %p)

(4 %p)

0 %p

3 %

(3 %)

14 %

52 %

(2 %)

(10 %)

(12 %)

(49 %)

7 %

(46 %)

22 %

n.a.

(58 %)

(29 %)

(95 %)

(23 %)

18 %

Impairment losses

DKKm

(1,434) - n.a. (1,434) - n.a.

15/42

Management’s review

Interim financial report First nine months 2023

Financial results for Q3 2023

Heat generation decreased by 2 % in Q3 2023,

and power generation decreased by 43 %,

mainly due to less attractive spreads for power

condensing generation and warmer weather.

Gas sales and power sales decreased by 6 %

and 58 %, respectively, due to a gradual phase-

out of our remaining B2B activities in the UK.

Revenue decreased by 79 % compared to Q3

2022 and amounted to DKK 2.6 billion. The

decrease was driven by significantly lower gas

and power sales, lower power generation, and

lower prices.

EBITDA amounted to DKK 0.2 billion compared

to DKK 1.8 billion in Q3 2022.

EBITDA from ‘CHP plants’ was DKK -0.2 billion,

DKK 1.9 billion lower than in Q3 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 Q3 2023 as the

cost is measured using the first in, first out

(FIFO) principle. The fuel we used during Q3

2023 was bought last year at the higher price

levels. The opposite was the case in Q3 2022.

EBITDA from ‘Gas Markets & Infrastructure’

increased by DKK 0.2 billion relative to Q3

2022 to DKK 0.5 billion. The increase was, to a

large extent, driven by a positive effect from

revaluation of our gas at storage during Q3

2023.

Bioenergy & Other

Q3 2023 Q3 2022 %

Business drivers 

Degree days Number 53 98 (46 %)

Heat generation

GWh

234 239 (2 %)

Power generation

GWh

781 1,363 (43 %)

Gas sales

GWh

5,355 5,706 (6 %)

Power sales

GWh

566 1,339 (58 %)

Gas price, TTF

EUR/MWh

33.0 196.2 (83 %)

Power price, DK

EUR/MWh

78.8 347.8 (77 %)

Green dark spread, DK

EUR/MWh

(36.4) 146.6 n.a.

Wood pellet spread, DK

EUR/MWh

9.2 169.4 (95 %)

Financial performance

Revenue

DKKm

2,645 12,336 (79 %)

EBITDA

DKKm

155 1,849 (92 %)

CHP plants (219) 1,691 n.a.

Gas Markets & Infrastructure 485 253 92 %

Other, incl. project development

(111) (95) 17 %

Depreciation DKKm

(169) (190) (11 %)

EBIT

DKKm

(14) 1,659 n.a.

Cash flow from operating activities

DKKm

2,130 (1,881) n.a.

Gross investments

DKKm

(208) (84) 148 %

Divestments

DKKm

- 2 n.a.

Free cash flow

DKKm

1,922 (1,963) n.a.

Capital employed DKKm

3,857 (14) n.a.

9M 2023

1,619

4,202

3,395

13,839

1,999

40.7

88.7

(32.7)

5.9

13,995

382

(31)

(262)

(579)

(490)

2,192

(353)

(3)

1,836

3,857

9M 2022

1,687

4,305

4,603

27,589

4,495

129.1

226.2

45.0

74.5

35,992

5,010

4,133

1,044

(167)

(572)

4,438

1,884

(242)

1,642

(14)

(4 %)

(2 %)

(26 %)

(50 %)

(56 %)

(68 %)

(61 %)

n.a.

(92 %)



(61 %)

(98 %)

(91 %)

n.a.

57 %

1 %

n.a.

16 %

46 %

n.a.

12 %

n.a.

16/42

Management’s review

Interim financial report First nine months 2023

Financials, DKKm

9M 2023 9M 2022 2022

Income statement

Revenue

64,869 96,598 132,277

EBITDA

19,403 25,361 32,057

Offshore

16,428 17,475 19,569

Sites, O&M, and PPAs

13,043 6,194 9,940

Construction agreements and divestment gains

4,542 12,992 12,277

Other, incl. project development

(1,157) (1,711) (2,648)

Onshore

2,445 2,792

3,644

Bioenergy & Other

89 5,010 8,619

Other activities/eliminations

441 84 225

Depreciation and amortisation

(7,429) (6,962) (9,754)

Impairment

(28,422) - (2,529)

Operating profit (loss) (EBIT)

(16,448) 18,399 19,774

Gain (loss) on divestment of enterprises

278 299 331

Net financial income and expenses

(3,444) (1,551) (2,536)

Profit (loss) before tax

(19,583) 17,149 17,609

Tax

(315) (1,824) (2,613)

Profit (loss) for the period

(19,898) 15,325 14,996

Balance

Assets 286,782 359,758 314,142

Equity

78,361 53,777 95,532

Shareholders in Ørsted A/S

57,304 32,413 71,743

Hybrid capital

19,103 17,984 19,793

Non-controlling interests

1,954 3,380 3,996

Interest-bearing net debt

42,892 45,701 30,571

Capital employed

121,253 99,478 126,103

Additions to property, plant, and equipment

25,890 23,750 33,662

Cash flow

Cash flow from operating activities

22,362 (8,991) 11,924

Gross investments

(25,470) (27,621) (37,447)

Divestments

(319) 24,653 25,636

Free cash flow

(3,427) (11,959) 113

Financial ratios

Return on capital employed (ROCE)

, % (13.7) 24.4 16.8

FFO/adjusted net debt

, % 20.9 35.3 42.7

Number of outstanding shares, end of period, '000

420,381 420,381 420,381

Share price, end of period, DKK

385 608 631

Market capitalisation, end of period, DKK billion

162 255 265

Earnings per share (EPS), DKK

(48.5) 35.8 34.6

Dividend yield, %

- - 2.1

9M 2023 9M 2022 2022

Offshore

Decided (FID'ed) and installed capacity, GW

12.0 11.1 11.1

Installed capacity, GW

8.9

8.9 8.9

Generation capacity, GW

5.0

5.3 4.7

Wind speed, m/s

9.2 9.0 9.5

Load factor, %

38 42

Availability, %

93 94

Power generation, GWh

11,750

11,072 16,483

Power sales, GWh

23,624

22,182 33,745

Onshore

Decided (FID'ed) and installed capacity, GW

6.2

5.1 6.2

Installed capacity, GW

4.8

4.2 4.2

Wind speed, m/s

7.0

7.2 7.4

Load factor, wind, %

40 40

Load factor, solar PV, %

28 25

Availability, wind, %

94 93

Availability, solar PV, %

98 98

Power generation, GWh

9,999

9,721 13,146

Bioenergy & Other

Degree days, number

1,619 1,687 2,548

Heat generation, GWh

4,202

4,305 6,368

Power generation, GWh

3,395

4,603 6,012

Power sales, GWh

1,999

4,495 5,399

Gas sales, GWh

13,839 27,589 31,637

ESG statements

Employees (FTE), end of period number

8,906

7,681 8,027

Total recordable injury rate (TRIR), YTD

2.9 3.3 3.1

Fatalities, number

- -

Green share of energy generation, %

92 91

GHG emission (scope 1 & 2), Mtonnes

1.3

1.7 2.5

GHG intensity (scope 1 & 2), g CO

e/kWh

59 60

GHG emissions (scope 3), Mtonnes

4.5 9.5 11.0

Performance highlights

EBIT last 12 months.

2 FFO last 12 months.

17/42

Management’s review

Interim financial report First nine months 2023

Quarterly overview

Financials, DKKm

2023

2022

2021

Income statement

Revenue 19,023 16,477 29,369 35,679 36,541 26,295 33,762 30,666

EBITDA 9,173 3,320 6,910 6,696 12,317 3,615 9,429 8,253

Offshore 8,037 2,979 5,412 2,094 9,652 1,904 5,919 5,244

Sites, O&M, and PPAs 4,050 3,135 5,859 3,746 467 2,031 3,698 3,983

Construction agreements and

divestment gains

4,245 340 (42) (715) 9,765 601 2,620 2,469

Other incl. project development (258) (496) (405) (937) (580) (728) (399) (1,208)

Onshore 819 792 834 852 867 1,075 850 530

Bioenergy & Other 155 (583) 517 3,609 1,849 647 2,514 2,416

Other activities/eliminations 162 132 147 141 (51) (11) 146 63

Depreciation and amortisation (2,537) (2,454) (2,438) (2,792) (2,530) (2,304) (2,128) (2,143)

Impairment (28,422) - - (2,529) - - - (129)

Operating profit (loss) (EBIT) (21,786) 866 4,472 1,375 9,787 1,311 7,301 5,980

Gain (loss) on divestment of enterprises (50) 159 169 32 124 67 108 (684)

Net financial income and expenses (128) (1,797) (1,519) (985) (217) (486) (848) (930)

Profit (loss) before tax (21,955) (763) 3,135 460 9,695 893 6,561 4,361

Tax (607) 225 67 (789) (340) (624) (860) (1,103)

Profit (loss) for the period (22,562) (538) 3,202 (329) 9,355 269 5,701 3,258

Balance sheet

Assets 286,782 296,466 306,644 314,142 359,758 320,722 285,087 270,385

Equity 78,361 103,548 102,826 95,532 53,777 61,276 76,719 85,137

Shareholders in Ørsted A/S 57,304 82,379 78,551 71,743 32,413 40,091 55,704 64,072

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

Non-controlling interests 1,954 2,066 4,482 3,996 3,380 3,201 3,031 3,081

Interest-bearing net debt 42,892 43,924 35,261 30,571 45,701 41,449 30,026 24,280

Capital employed 121,253 147,471 138,087 126,103 99,478 102,725 106,745 109,416

Additions to property, plant, equipment 10,988 6,963 7,939 9,912 9,899 8,724 5,127 17,041

Cash flow

Cash flow from operating activities 9,796 2,447 10,119 20,915 (11,309) 2,355 (37) 668

Gross investments (9,204) (7,498) (8,768) (9,826) (14,417) (6,372) (6,832) (11,752)

Divestments 1,735 (2,038) (16) 983 22,459 267 1,927 10,952

Free cash flow 2,327 (7,089) 1,335 12,072 (3,267) (3,750) (4,942) (132)

Financial ratios

Return on capital employed (ROCE)

, % (13.7) 13.2 13.8 16.8 24.4 14.8 19.0 14.8

FFO/adjusted net debt

, % 20.9 17.7 37.4 42.7 35.3 39.0 37.5 26.3

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

385 645 583 631 608 742 849 835

Market capitalisation, end of period, DKK billion 162 271 245 265 255 312 357 351

Earnings per share (EPS), DKK (53.8) (1.4) 6.7 1.2 22.3 0.3 13.2 7.5

2023

2022

2021

Offshore

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

Installed capacity, GW

8.9 8.9 8.9 8.9 7.6 7.6 7.6

Generation capacity, GW

4.9 4.7 4.7 5.3 4.8 4.2 4.0

Wind speed, m/s

8.1 10.9 10.7 7.7 8.4 11.3 10.6

Load factor, %

29 53 54 28 35 54 53

Availability, %

91 95 95 91 94 95 95

Power generation, GWh

3,044 5,162 5,411 3,246 3,324 4,502 4,452

Power sales, GWh

6,739 10,642 11,563 5,600 7,416 9,166 8,791

Onshore

Decided (FID'ed) and installed capacity, GW

6.2 6.2 6.2 5.1 4.9 4.7 4.7

Installed capacity, GW

4.6 4.5 4.2 4.2 4.0 3.6 3.4

Wind speed, m/s

6.7 8.1 7.7 6.0 7.8 7.9 7.9

Load factor, wind, %

35 45 40 28 47 47 47

Availability, wind, %

92 91 91 92 92 96 96

Power generation, GWh

3,321 3,750 3,425 2,723 3,795 3,203 2,818

Bioenergy & Other

Degree days, number

409 1,157 861 98 448 1,141 927

Heat generation, GWh

790 3,178 2,064 239 823 3,243 2,467

Power generation, GWh

917 1,697 1,409 1,363 1,102 2,138 2,096

Power sales, GWh

556 877 904 1,339 1,466 1,690 2,072

Gas sales, GWh

4,016 4,468 4,048 5,706 8,891 12,993 13,744

ESG statements

Employees (FTE) end of period, number

8,661 8,422 8,027 7,681 7,292 7,016 6,836

Total recordable injury rate (TRIR), YTD

2.6 2.7 3.1 3.3 2.8 1.3 3.0

Fatalities, number

- - - - - - -

Green share of energy generation, %

97 89 88 89 93 92 93

GHG intensity (scope 1 & 2), g CO

e/kWh

24 52 62 88 49 48 45

GHG emissions (scope 3), Mtonnes

1.3 1.5 1.5 3.1 2.6 3.7 3.9

2023

12.0

8.9

5.0

8.6

3,544

6,242

6.2

4.8

6.2

2,927

234

781

566

5,355

8,906

2.9

1.6

Load factor, solar PV, %

32 30 16 17 32 31 21 19

Availability, solar PV, %

98 98 99 99 96 99 99 99

GHG emissions (scope 1 & 2), Mtonnes

0.3 0.2 0.7 0.8 0.7 0.4 0.6 0.5

EBIT last 12 months.

2 FFO last 12 months.

18/42

Management’s review

Interim financial report First nine months 2023

Consolidated

financial statements

First nine months 2023

1 January – 30 September

Consolidated financial statements

Interim financial report First nine months 2023

19/42

Consolidated statements of income

1 January – 30 September

’Value adjustments for the period’ in the first 9 months of 2023 are mainly a

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

Note

Income statement

DKKm 9M 2023 9M 2022

3 Revenue 64,869 96,598

Cost of sales (43,918) (72,339)

Other external expenses (4,670) (4,625)

Employee costs (4,743) (3,801)

Share of profit (loss) in associates and joint ventures 30 44

5 Other operating income 8,183 13,192

5 Other operating expenses (348) (3,708)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 19,403 25,361

Amortisation and depreciation on intangible assets, and property,

plant, and equipment (7,429) (6,962)

Impairment losses on intangible assets, and property, plant,

and equipment (28,422) -

Operating profit (loss) (EBIT)

(16,448) 18,399

Gain (loss) on divestment of enterprises 278 299

Share of profit (loss) in associates and joint ventures 31 2

6 Financial income 5,281 7,776

6 Financial expenses (8,725) (9,327)

Profit (loss) before tax

(19,583) 17,149

9 Tax on profit (loss) for the period (315) (1,824)

Profit (loss) for the period

(19,898) 15,325

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S (20,382) 15,037

Interests and costs, hybrid capital owners of Ørsted A/S 195 277

Non-controlling interests 289 11

Earnings per share (DKK) (48.5) 35.8

Diluted earnings per share (DKK) (48.5) 35.8

Statement of comprehensive income

DKKm 9M 2023 9M 2022

Profit (loss) for the period (19,898) 15,325

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period 21,525 (71,736)

Value adjustments transferred to income statement (960) 22,854

Value adjustments transferred to balance sheet - (118)

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises 1,088 1,622

Value adjustment of net investment hedges (977) (1,970)

Value adjustments and hedges transferred to income statement (59) 676

Tax:

Tax on hedging instruments (4,480) 6,523

Tax on exchange rate adjustments (50) 666

Other:

Share of other comprehensive income of associated companies, after tax 6 31

Other comprehensive income 16,093 (41,452)

Total comprehensive income (3,805) (26,127)

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S (4,307) (26,431)

Interest payments and costs, hybrid capital owners of Ørsted A/S 195 277

Non-controlling interests 307 27

Total comprehensive income (3,805) (26,127)

Consolidated financial statements

Interim financial report First nine months 2023

20/42

Consolidated statements of income (continued)

1 July – 30 September

’Value adjustments for the period’ in Q3 2023 are mainly a result of gains on

power hedges due to a decrease in power prices.

Note

Income statement

DKKm Q3 2023 Q3 2022

3 Revenue 19,023 36,541

Cost of sales (11,916) (28,503)

Other external expenses (1,606) (1,777)

Employee costs (1,421) (1,367)

Share of profit (loss) in associates and joint ventures (7) (12)

5 Other operating income 4,949 9,759

5 Other operating expenses 151 (2,324)

Operating profit (loss) before depreciation, amortisation,

and impairment losses (EBITDA) 9,173 12,317

Amortisation and depreciation on intangible assets, and property,

plant, and equipment (2,537) (2,530)

Impairment losses on intangible assets, and property, plant,

and equipment (28,422) -

Operating profit (loss) (EBIT) (21,786) 9,787

Gain (loss) on divestment of enterprises (50) 124

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

6 Financial income 1,360 4,685

6 Financial expenses (1,488) (4,902)

Profit (loss) before tax (21,955) 9,695

9 Tax on profit (loss) for the period (607) (340)

Profit (loss) for the period (22,562) 9,355

Profit (loss) for the period is attributable to:

Shareholders in Ørsted A/S (22,596) 9,349

Interests and costs, hybrid capital owners of Ørsted A/S - (16)

Non-controlling interests 34 22

Earnings per share (DKK) (53.8) 22.3

Diluted earnings per share (DKK) (53.8) 22.3

Statement of comprehensive income

DKKm Q3 2023 Q3 2022

Profit (loss) for the period (22,562) 9,355

Other comprehensive income:

Cash flow hedging:

Value adjustments for the period 3,769 (33,176)

Value adjustments transferred to income statement (709) 15,248

Value adjustments transferred to balance sheet - (49)

Exchange rate adjustments:

Exchange rate adjustments relating to net investments in foreign enterprises (25) 797

Value adjustment of net investment hedges (521) (1,254)

Value adjustments and hedges transferred to income statement - 676

Tax:

Tax on hedging instruments (818) 477

Tax on exchange rate adjustments 171 268

Other:

Share of other comprehensive income of associated companies, after tax 3 (6)

Other comprehensive income 1,870 (17,019)

Total comprehensive income (20,692) (7,664)

Comprehensive income for the period is attributable to:

Shareholders in Ørsted A/S (20,725) (7,688)

Interest payments and costs after tax, hybrid capital owners of Ørsted A/S - (16)

Non-controlling interests 33 40

Total comprehensive income (20,692) (7,664)

Consolidated financial statements

Interim financial report First nine months 2023

21/42

Consolidated balance sheet

30 September

Note

Assets

DKKm

30 September

2023

31 December

2022

30 September

2022

Intangible assets 3,342 4,029 3,510

Land and buildings 8,319 7,980 8,009

Production assets 122,922 119,211 114,468

Fixtures and fittings, tools, and equipment 2,136 1,543 1,575

Property, plant, and equipment under construction 44,582 48,931 52,098

Property, plant, and equipment 177,959 177,665 176,150

Investments in associates and joint ventures 968 772 1,044

Receivables from associates and joint ventures 54 - -

Other securities and equity investments 174 182 217

11 Derivatives 789 1,804 13,069

Deferred tax 8,798 13,719 21,719

Other receivables 3,552 3,243 3,290

Other non-current assets 14,335 19,720 39,339

Non-current assets 195,636 201,414 218,999

Inventories 9,919 14,103 17,132

11 Derivatives 12,994 23,433 51,441

Contract assets 561 408 1,344

Trade receivables 7,240 12,701 11,091

Other receivables 14,346 20,289 31,617

Receivables from associates and joint ventures 80 - 174

9 Income tax 333 419 620

11 Securities 29,988 25,197 18,803

Cash 15,685 16,178 7,280

Current assets 91,146 112,728 139,502

Assets classified as held for sale - - 1,257

Assets 286,782 314,142 359,758

Note

Equity and liabilities

DKKm

30 September

2023

31 December

2022

30 September

2022

Share capital 4,204 4,204 4,204

8 Reserves (10,398) (26,467) (66,277)

Retained earnings 63,498 88,331 94,486

Proposed dividends - 5,675 -

Equity attributable to shareholders in Ørsted A/S 57,304 71,743 32,413

Hybrid capital 19,103 19,793 17,984

Non-controlling interests 1,954 3,996 3,380

Equity 78,361 95,532 53,777

Deferred tax 4,665 7,414 8,432

4 Provisions 18,776 19,121 13,938

Lease liabilities 8,058 7,697 7,903

12 Bond and bank debt 76,585 60,451 62,198

11 Derivatives 16,098 24,121 40,138

Contract liabilities 3,101 3,085 3,117

Tax equity liabilities 14,794 14,490 15,719

Other payables 6,662 7,363 5,412

Non-current liabilities 148,739 143,742 156,857

4 Provisions 11,937 585 828

Lease liabilities 802 569 589

12 Bond and bank debt 4,118 2,830 2,117

11 Derivatives 11,186 33,438 107,695

Contract liabilities 2,739 2,269 1,371

Trade payables 13,810 20,641 20,222

Tax equity liabilities 3,358 1,903 1,847

Other payables 6,478 7,518 8,858

9 Income tax 5,254 5,115 5,076

Current liabilities 59,682 74,868 148,603

Liabilities 208,421 218,610 305,460

Liabilities relating to assets classified as

held for sale - - 521

Equity and liabilities 286,782 314,142 359,758

Consolidated financial statements

Interim financial report First nine months 2023

22/42

1 See note 8 ‘Reserves’ for more information on reserves.

Consolidated statement of shareholders’ equity

1 January – 30 September

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 - - (20,382) - (20,382) 195 289 (19,898) - - 15,037 - 15,037 277 11 15,325

Other comprehensive income:

Cash flow hedging - 20,565 - - 20,565 - - 20,565 - (49,000) - - (49,000) - - (49,000)

Exchange rate adjustments - 34 - - 34 - 18 52 - 312 - - 312 - 16 328

Tax on other comprehensive income - (4,530) - - (4,530) - - (4,530) - 7,189 - - 7,189 - - 7,189

Share of other comprehensive income

of associated companies, after tax - - 6 - 6 - - 6 - - 31 - 31 - - 31

Total comprehensive income - 16,069 (20,376) - (4,307) 195 307 (3,805) - (41,499) 15,068 - (26,431) 277 27 (26,127)

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

Tax, hybrid capital - - - - - 2 - 2 - - - - - 37 - 37

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

Dividends paid - - 2 (5,675) (5,673) - (322) (5,995) - - 3 (5,255) (5,252) - (275) (5,527)

Additions, non-controlling interests - - - - - - 528 528 - - - - - - 547 547

Disposals, non-controlling interests - - (4,477) - (4,477) - (2,555) (7,032) - - - - - - - -

Other changes - - 18 - 18 - - 18 - - 24 - 24 - - 24

Equity at 30 September 4,204 (10,398) 63,498 - 57,304 19,103 1,954 78,361 4,204 (66,277) 94,486 - 32,413 17,984 3,380 53,777

Consolidated financial statements

Interim financial report First nine months 2023

23/42

Statement of cash flows

Our supplementary statement of gross and net investments appears from

note 7 ’Gross and net investments’ and free cash flow (FCF) from note 2

’Segment information’.

’Cash’ according to the balance sheet as at 30 September 2023 includes

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

to DKK 4 million.

Consolidated statement of cash flows

1 January – 30 September

Note DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Proceeds from raising of loans 17,554 34,438

1,459 14,075

Instalments on loans (658) (22,020) (52) (9,045)

Instalments on leases (446) (402) (99) (106)

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

Repurchase of hybrid capital (699) - - -

Dividends paid to shareholders in

Ørsted A/S (5,673) (5,252) - -

Transactions with non-controlling

interests (6,852) 227 (4,494) 112

Net proceeds from tax equity partners (117) (207) (9) (70)

Collateral posted in relation to trading

of derivatives (17,427) (41,100) (4,907) (19,873)

Collateral released in relation to trading

of derivatives 14,671 45,039 4,182 19,615

Restricted cash and other changes

1,151 (773) (407) 148

Cash flows from financing activities 1,316 9,636 (4,327) 4,856

Total net change in cash and

cash equivalents (763) (1,327) 3,725 2,397

Cash and cash equivalents at the

beginning of the period 16,175 8,614 11,863 4,976

Total net change in cash and cash

equivalents (763) (1,327) 3,725 2,397

Exchange rate adjustments of cash

and cash equivalents 269 (11) 93 (97)

Cash and cash equivalents

at 30 September 15,681 7,276 15,681 7,276

Note

Statement of cash flows

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Operating profit (loss) before

depreciation, amortisation, and

impairment losses (EBITDA) 19,403 25,361 9,173 12,317

Reversal of gain (loss) on divestment

of assets (5,053) (10,942) (3,750) (9,058)

Change in derivatives

5,786 (10,802) 528 (5,587)

Change in provisions

124 (1,267) 149 (312)

Other items

(67) (180) (22) (26)

Change in inventories 4,274 (1,573) 2,417 1,406

Change in contract assets and liabilities 478 (2,962) 365 330

Change in trade receivables 5,385 (1,371) (415) (2,304)

Change in other receivables 1,713 (6,136) (618) (9,420)

Change in trade payables (7,276) 2,576 73 2,037

Change in tax equity liabilities 901 (604) 2,053 (583)

Change in other payables (301) 653 689 862

Interest received and similar items 7,242 6,171 2,966 3,228

Interest paid and similar items (8,117) (6,680) (3,178) (3,483)

Income tax paid (2,130) (1,235) (634) (716)

Cash flows from operating activities 22,362 (8,991) 9,796 (11,309)

Purchase of intangible assets and

property, plant, and equipment (25,270) (23,162) (9,193) (10,052)

Sale of intangible assets and property,

plant, and equipment 6,222 23,920 6,104 22,033

Acquisition of enterprises

- (3,399) - (3,373)

Divestment of enterprises

(33) 163 (3) 138

Purchase of associates and joint ventures

(124) - - -

Purchase of securities

(17,878) (1,839) (5,612) (820)

Sale/maturation of securities

12,759 2,394 6,967 927

Change in other non-current assets

(13) 11 (10) 25

Transactions with associates and

joint ventures (116) (76) (9) (22)

Dividends received and capital

reductions 12 16 12 (6)

Cash flows from investing activities (24,441) (1,972) (1,744) 8,850

Consolidated financial statements

Interim financial report First nine months 2023

24/42

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 nine

months of 2023 comprises the interim financial

statements of Ørsted A/S (the parent

company) and any subsidiaries controlled by

Ørsted A/S.

The interim financial report has been prepared

in accordance with the International Financial

Reporting Standards (IFRS), IAS 34 ’Interim

Financial Reporting’ as adopted by the EU, and

further requirements in the Danish Financial

Statements Act (Årsregnskabsloven) for the

presentation of quarterly interim reports by

listed companies.

Definitions of alternative performance

measures can be found on page 152 of the

annual report for 2022.

The interim consolidated financial statements

for the first nine months 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 nine months 2023

25/42

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 3,826 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 48,568 2,045 14,202 64,815 54 64,869

Intra-group revenue 945 (23) (207) 715 (715)

Revenue 49,513 2,022 13,995 65,530 (661) 64,869

Cost of sales (32,160) (105) (11,845) (44,110) 192 (43,918)

Employee costs and other external expenses (6,778) (1,482) (2,061) (10,321) 908 (9,413)

Gain (loss) on disposal of non-current assets 5,053 - - 5,053 - 5,053

Additional other operating income and expenses 764 2,016 - 2,780 2 2,782

Share of profit (loss) in associates and joint ventures 36 (6) - 30 - 30

EBITDA 16,428 2,445 89 18,962 441 19,403

Depreciation and amortisation

(5,187) (1,459) (579)

(7,225)

(204)

(7,429)

Impairment losses (26,988) (1,434) - (28,422) - (28,422)

Operating profit (loss) (EBIT) (15,747) (448) (490) (16,685) 237 (16,448)

Key ratios

Intangible assets and property, plant, and equipment 109,536 61,996 8,273 179,805 1,496 181,301

Equity investments and non-current receivables 782 144 93 1,019 170 1,189

Net working capital, capital expenditures (3,873) (1,276) (284) (5,433) - (5,433)

Net working capital, work in progress (22) - - (22) - (22)

Net working capital, tax equity (1,434) (15,424) - (16,858) - (16,858)

Net working capital, other items 6,295 713 784 7,792 998 8,790

Derivatives, net (6,119) (6,944) (1,022) (14,085) 584 (13,501)

Decommissioning obligations (10,603) (2,076) (2,119) (14,798) - (14,798)

Other provisions (13,098) (2) (886) (13,986) (1,929) (15,915)

Tax, net 3,509 (3,963) (982) (1,436) 648 (788)

Other receivables and other payables, net (1,995) 154 - (1,841) (871) (2,712)

Capital employed at 30 September 82,978 33,322 3,857 120,157 1,096 121,253

Return on capital employed (ROCE), % - - - - - (13.7)

Cash flow from operating activities 15,204 620 2,192 18,016 4,346 22,362

Gross investments (18,923) (6,045) (353) (25,321) (149) (25,470)

Divestments (290) 2 (3) (291) (28) (319)

Free cash flow (FCF) (4,009) (5,423) 1,836 (7,596) 4,169 (3,427)

Consolidated financial statements

Interim financial report First nine months 2023

26/42

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 5,997 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 55,405 2,256 38,942 96,603 (5) 96,598

Intra-group revenue 6,794 - (2,950) 3,844 (3,844)

Revenue 62,199 2,256 35,992 100,447 (3,849) 96,598

Cost of sales (47,328) (77) (28,756) (76,161) 3,822 (72,339)

Employee costs and other external expenses (5,543) (1,250) (1,743) (8,536) 110 (8,426)

Gain (loss) on disposal of non-current assets 10,894 43 5 10,942 - 10,942

Additional other operating income and expenses (2,787) 1,819 (491) (1,459) 1 (1,458)

Share of profit (loss) in associates and joint ventures 40 1 3 44 - 44

EBITDA 17,475 2,792 5,010 25,277 84 25,361

Depreciation and amortisation

(5,012) (1,196) (572)

(6,780)

(182)

(6,962)

Impairment losses

- - -

Operating profit (loss) (EBIT) 12,463 1,596 4,438 18,497 (98) 18,399

Key ratios

Intangible assets and property, plant, and equipment 109,845 60,435 8,018 178,298 1,362 179,660

Assets classified as held for sale, net - - 747 747 - 747

Equity investments and non-current receivables 621 359 127 1,107 193 1,300

Net working capital, capital expenditures (5,754) (573) (41) (6,368) - (6,368)

Net working capital, work in progress 3,211 40 - 3,251 - 3,251

Net working capital, tax equity - (16,007) - (16,007) - (16,007)

Net working capital, other items 16,266 (89) 5,675 21,852 547 22,399

Derivatives, net (64,356) (9,065) (12,526) (85,947) 2,624 (83,323)

Decommissioning obligations (5,637) (1,739) (1,420) (8,796) - (8,796)

Other provisions (1,933) (41) (1,708) (3,682) (2,288) (5,970)

Tax, net 11,312 (4,706) 1,111 7,717 1,114 8,831

Other receivables and other payables, net 4,786 (274) 3 4,515 (761) 3,754

Capital employed at 30 September 68,361 28,340 (14) 96,687 2,791 99,478

Return on capital employed (ROCE), % - - - - - 24.4

Cash flow from operating activities (12,456) 1,470 1,884 (9,102) 111 (8,991)

Gross investments (18,784) (8,540) (242) (27,566) (55) (27,621)

Divestments 24,417 43 - 24,460 193 24,653

Free cash flow (FCF) (6,823) (7,027) 1,642 (12,208) 249 (11,959)

Consolidated financial statements

Interim financial report First nine months 2023

27/42

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 219 million (Q3 2022: 2,390 million), which

primarily relates to our Shared Functions services as

well as our B2B business activities.

Q3 2023, income statement and FCF

DKKm Offshore Onshore

Bioenergy

& Other

Reporting

segments

Other

activities/

eliminations Total

External revenue 15,507 677 2,813 18,997 26 19,023

Intra-group revenue 340 (1) (168) 171 (171)

Revenue 15,847 676 2,645 19,168 (145) 19,023

Cost of sales (10,067) (18) (1,800) (11,885) (31) (11,916)

Employee costs and other external expenses (2,260) (415) (689) (3,364) 337 (3,027)

Gain (loss) on disposal of non-current assets 3,750 - - 3,750 - 3,750

Additional other operating income and expenses 772 579 (2) 1,349 1 1,350

Share of profit (loss) in associates and joint ventures (5) (3) 1 (7) - (7)

EBITDA 8,037 819 155 9,011 162 9,173

Depreciation and amortisation (1,733) (560) (169) (2,462) (75) (2,537)

Impairment losses (26,988) (1,434) - (28,422) - (28,422)

Operating profit (loss) (EBIT) (20,684) (1,175) (14) (21,873) 87 (21,786)

Cash flow from operating activities 4,405 1,121 2,130 7,656 2,140 9,796

Gross investments (7,430) (1,460) (208) (9,098) (106) (9,204)

Divestments 1,738 - - 1,738 (3) 1,735

Free cash flow (FCF) (1,287) (339) 1,922 296 2,031 2,327

Q3 2022, income statement and FCF

DKKm

External revenue 22,070 836 13,654 36,560 (19) 36,541

Intra-group revenue 2,987 - (1,318) 1,669 (1,669)

Revenue 25,057 836 12,336 38,229 (1,688) 36,541

Cost of sales (20,784) (56) (9,335) (30,175) 1,672 (28,503)

Employee costs and other external expenses (1,983) (483) (640) (3,106) (38) (3,144)

Gain (loss) on disposal of non-current assets 9,058 - - 9,058 - 9,058

Additional other operating income and expenses (1,683) 570 (513) (1,626) 3 (1,623)

Share of profit (loss) in associates and joint ventures (13) - 1 (12) - (12)

EBITDA 9,652 867 1,849 12,368 (51) 12,317

Depreciation and amortisation (1,820) (456) (190) (2,466) (64) (2,530)

Operating profit (loss) (EBIT) 7,832 411 1,659 9,902 (115) 9,787

Cash flow from operating activities (10,296) 364 (1,881) (11,813) 504 (11,309)

Gross investments (7,979) (6,322) (84) (14,385) (32) (14,417)

Divestments 22,296 (1) 2 22,297 162 22,459

Free cash flow (FCF) 4,021 (5,959) (1,963) (3,901) 634 (3,267)

Consolidated financial statements

Interim financial report First nine months 2023

28/42

Revenue was DKK 64,869 million. The

decrease of 33 % relative to the first nine

months 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 5,953 million in 9M 2023 and mainly

related to the construction of Borkum

Riffgrund 3 for partners and the divestment of

the offshore transmission asset at Hornsea 2.

Income from government grants in Offshore

increased relative to the first nine months 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 6,697 1,562 4,792 - 13,051 9,296 1,829 9,694 - 20,819

Sale of power 26,110 1 358 (233) 26,236 37,685 - 5,700 (3,768) 39,617

Revenue from construction of wind farms and transmission assets 5,805 148 - - 5,953 10,724 - - - 10,724

Generation and sale of heat and steam - - 2,370 - 2,370 - - 1,739 - 1,739

Sale of gas - - 5,114 - 5,114 - - 17,157 - 17,157

Distribution and transmission - - 199 (1) 198 - - 186 (4) 182

O&M and other services 2,961 126 672 (447) 3,312 1,633 23 449 (23) 2,082

Total revenue from customers 41,573 1,837 13,505 (681) 56,234 59,338 1,852 34,925 (3,795) 92,320

Government grants 6,073 276 269 - 6,618 2,352 393 385 - 3,130

Miscellaneous revenue 1,867 (91) 221 20 2,017 509 11 682 (54) 1,148

Total revenue 49,513 2,022 13,995 (661) 64,869 62,199 2,256 35,992 (3,849) 96,598

Timing of revenue recognition from customers

At a point in time 33,660 1,837 8,470 (681) 43,286 46,487 1,852 23,243 (3,795) 67,787

Over time 7,913 - 5,035 - 12,948 12,851 - 11,682 - 24,533

Total revenue from customers 41,573 1,837 13,505 (681) 56,234 59,338 1,852 34,925 (3,795) 92,320

Consolidated financial statements

Interim financial report First nine months 2023

29/42

3. Revenue (continued)

’Sale of power’ in Bioenergy & Other is too low with

DKK 778 million in Q3 2023 due to an error in

eliminations between ’Sale of power’ and ’costs of

sales’ end of June 2023. This has no impact on gross

margins or EBITDA.

Revenue

DKKm Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q3 2023

total Offshore Onshore

Bioenergy &

Other

activities/

eliminations

Q3 2022

total

Generation of power 1,896 732 1,075 - 3,703 4,337 783 4,390 -

9,510

Sale of power 5,310 - 103 12 5,425

14,453 - 2,475 (1,567) 15,361

Revenue from construction of wind farms and transmission assets 5,247 3 - - 5,250

6,629 - - - 6,629

Generation and sale of heat and steam - - 371 - 371

- - 29 - 29

Sale of gas - - 1,554 - 1,554 - - 4,820 - 4,820

Distribution and transmission - - 76 - 76

- - 65 (2) 63

O&M and other services 1,052 14 109 (161) 1,014 492 4 289 (10) 775

Total revenue from customers 13,505 749 3,288 (149) 17,393 25,911 787 12,068 (1,579) 37,187

Government grants 2,083 36 24 - 2,143 (177) 64 84 - (29)

Miscellaneous revenue 259 (109) (667) 4 (513) (677) (15) 184 (109) (617)

Total revenue 15,847 676 2,645 (145) 19,023 25,057 836 12,336 (1,688) 36,541

Timing of revenue recognition from customers

At a point in time 11,460 749 2,229 (149) 14,289 21,532 787 9,549 (1,579) 30,289

Over time 2,045 - 1,059 - 3,104 4,379 - 2,519 - 6,898

Total revenue from customers 13,505 749 3,288 (149) 17,393 25,911 787 12,068 (1,579) 37,187

Consolidated financial statements

Interim financial report First nine months 2023

30/42

4. Impairment

On 29 August 2023, we announced

anticipated impairments on our US portfolio

due to adverse impacts related to the supply

chain, progress in investment tax credit (ITC)

guidance, and increased interest rates.

Following these impairment indicators, our

impairment calculations have been updated

as of 30 September 2023.

Management has taken these impacts and

other related risks and inherent uncertainties

into consideration when estimating the future

cash flows for the value-in-use calculations of

our CGUs. Based on this, our impairment tests

prepared in Q3 2023 have resulted in total

impairment losses of DKK 28.4 billion. Our

announced indicative impairments from

29 August were up to DKK 16 billion.

On 31 October 2023, we decided to cease the

development of Ocean Wind 1 as a conse-

quence of additional supplier delays further

impacting the project schedule and leading to

an additional significant delay of the project.

In addition, we have updated our view on

certain assumptions, including tax credit mon-

etisation and the timing and likelihood of final

construction permits. Finally, increases to

long-dated US interest rates have further

deteriorated the business case, resulting in a

substantial negative forward-looking value.

We have also ceased development of Ocean

Wind 2, which has not led to an impairment as

the carrying amount is insignificant.

As the decision was not taken as of

30 September 2023, this note presents the

impairment of Ocean Wind 1 as if the project

was still to be constructed. However,

sensitivity impacts are no longer relevant.

Investments incurred on the project up until it

was ceased will be offset against the

provision.

The circumstances and assumptions with the

most significant impairment impact and high

involvement of estimates and uncertainties

are described here.

Supply chain

The Ocean Wind 1, Sunrise Wind, and

Revolution Wind projects have been

adversely impacted by supply chain bottle-

necks. We have concluded that outstanding

risks remain in these suppliers’ ability to

deliver on their commitments and contracted

schedules, including worldwide vessel

scarcity. This could create knock-on effects,

requiring future remobilisations to finish

installation, as well as potentially delayed

revenues, extra costs, and other business case

implications.

Our impairment tests are based on a

probability-weighted assessment of the

likelihood of these and other supply chain

impacts. While we are taking mitigating

actions to the extent possible, we continue to

see risks, especially regarding vessel

availability.

The effect from changes in supplier-related

assumptions has led to an impairment loss of

DKK 16.9 billion and relates to our US offshore

projects. Our announced indicative estimate

was up to DKK 5 billion. The substantial

increase mainly relates to Ocean Wind 1 due

to continuing supplier delays further

impacting our project schedule and leading to

an additional significant delay of the project.

Furthermore, we now assume a new

installation approach with a longer timeline

for Revolution Wind and Sunrise Wind.

Investment tax credit guidance

The 2022 Inflation Reduction Act (IRA)

reaffirmed the existing 30 % ITC for all US

offshore projects. The IRA also made two

additional 10 % ITC bonus credits available to

projects meeting ‘domestic content’ and

‘energy community’ criteria. Projects can

qualify for one or both ITC bonus credits.

The US Treasury has provided preliminary

guidance on how ’energy community’ and

’domestic content’ requirements will be

defined and implemented by the Internal

Revenue Service (IRS), and which exemptions

to the requirements may be allowed.

In our impairment testing, we have assumed a

95 % probability of achieving an additional

10 % ITC bonus credit for Revolution Wind and

Sunrise Wind due to the brownfield status of

both sites under the current energy

communities guidance. These assumptions are

unchanged compared to our expectations as

at 30 June 2023 but an improvement for

Sunrise Wind compared to our expectations

late August.

In addition, we have changed our tax credit

monetisation assumptions as a result of the

The base discount rate after tax applied for the

value-in-use calculation is determined per CGU.

WACC levels, %

Base discount rate applied

for the US 6.00 % - 7.50 %

Impairment losses on segment level

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Offshore 26,988 - 26,988 -

Onshore 1,434 - 1,434 -

Bioenergy & Other - - - -

Total impairment losses 28,422 - 28,422 -

Consolidated financial statements

Interim financial report First nine months 2023

31/42

4. Impairment (continued)

deterioration of the business case and our

current understanding of market conditions

for third-party tax monetisation of US

offshore wind ITCs.

We assume a 15 % probability of achieving an

additional 10 % ITC bonus credit based on

management’s assessment following

discussions with politicians, administrations,

and other relevant organisations. We

previously expected a 95 % probability of an

additional 10 % ITC bonus credit for Ocean

Wind 1.

The effect from this change in assumptions

has led to an impairment loss of DKK 4.7

billion and relates to US offshore projects. Our

announced indicative estimate was up to

DKK 6 billion.

Sunrise Wind OREC price

In 2019, Sunrise Wind signed a 25-year OREC

purchase-and-sale agreement with the

New York State Energy Research and

Development Authority (NYSERDA), with an

OREC strike price at USD 110 per MWh.

In June 2023, we submitted a request to the

state of New York to increase the OREC price

by 27 % to USD 140 per MWh due to

significant cost and inflation increases since

the agreement was entered into. This request

was denied by the state on 12 October 2023.

Following the rejected petition and the

outcome of the New York 3 tender, the state

of New York announced a plan for solicitating

capacity at an accelerated pace. This means

that we will have an opportunity to rebid our

Sunrise Wind project in the accelerated

Estimation uncertainty and sensitivity analyses

Due to the impairments recognised, estimation uncertainty exists on the assets

impaired. The assumptions with major uncertainty include investment tax

credits, interest rates ,and the supply chain.

In the table, we have included sensitivity analyses of impairment effects if

WACC levels or assumptions related to ITC bonus credits change.

If WACC had increased by 50 basis points in the impairment test of e.g.

Revolution Wind as of 30 September 2023, the impairment loss would have

been DKK 0.6 billion higher.

If we had not included the probability-weighted additional 10 % ITC bonus

credits in the impairment test of e.g. Revolution Wind as of 30 September 2023,

the impairment loss would have been DKK 1.0 billion higher.

Impairment breakdown on balance sheet

The total impairment losses are recognised with DKK 17,221 million under

’Property, plant, and equipment’ and DKK 11,201 million under ‘Provisions’ as

‘Onerous contracts’.

solicitation at a bid price level reflecting the

current component and financing costs. Based

on this, we assume a higher price with a

probability weighting of 50 % for a successful

outcome. However, we will await the

conditions of the request for proposal (RFP)

and determine whether we rebid or not.

If we had not included the 50 % probability-

weighted higher OREC strike price, the

impairment loss would have been DKK 1.4

billion higher. We previously assumed a 75 %

probability of a positive outcome of the

negotiations with the state of New York.

Increasing interest rates

The US long-dated interest rate has increased

by approx. 75 bps from 30 June to 30 Septem-

ber 2023 and thus increased our WACCs.

The effect from this change in assumptions

has led to an impairment of DKK 6.2 billion,

which relates to US offshore and onshore

projects. Our announced indicative estimate

was up to DKK 5 billion. Since the end of

September, the US long-dated interest rate

has increased by a further 30-40 bps.

US offshore impairment loss overview

The most significant impairment losses on the

US offshore CGUs are presented in the table

above.

Sensitivity to changes in assumptions

The sensitivity analyses presented in the table

above show the related impact on

impairment losses when a change in a given

assumption increases or decreases the

value-in-use for our CGUs. The analyses are

performed with all other assumptions

unchanged.

ITC bonus credits

assumed in impairment tests

Sensitivity impact

DKK billion

CGUs

DKKm

Impairment

losses

Recoverable

amount

ITC

bonus credits

Probability

weighting

No ITC

bonus credits

40 % ITC

bonus credits,

100 % proba-

bility

+50 bps

WACC

-50 bps

WACC

Ocean Wind 1 19,875 (6,949) 10 % 15 % n.a. n.a. n.a. n.a.

Sunrise Wind 2,810 401 10 % 95 % (1.4) 0.1 (0.7) 0.7

Revolution Wind 3,305 2,481 10 % 95 % (1.0) 0.1 (0.6) 0.6

South Fork 641 4,307 10 % 0 % n.a. n.a. (0.2) 0.2

Block Island 357 1,351 n.a. n.a. n.a. n.a. (0.1) 0.1

Offshore 26,988 1,591

Onshore 1,434 5,273 n.a. n.a. n.a. n.a. (0.4) 0.4

Total 28,422 6,864

Interim financial report First nine months 2023

32/42

Consolidated financial statements

4. Impairment (continued)

management’s approved forecast for

2023 and business plans beyond 2023.

Estimating expected cash flows involves a

number of assumptions and estimates. In

the US, key estimates and assumptions for

the forecast periods are CAPEX (including

knock-on effects from supplier delays,

etc.), inflation, terms of conditions in new

power purchase agreements, possible

renegotiations of existing ORECs (which do

not have inflation indexation), eligibility for

bonus ITCs, and tax equity arrangements

or alternative ways of monetising the ITCs.

All these key estimates and assumptions

are determined specifically for each CGU.

The discount rate applied when

calculating value-in-use takes general risks

into account and is based on the weighted

average cost of capital (WACC) after tax,

whereas the estimated future cash flows

are adjusted for risks specific to the asset.

Estimated future cash flows are

discounted using a nominal post-tax

discount rate.

Impairment losses are recognised in the

income statement and, except in the case

of goodwill, reversed if there has been a

change in the estimates used to determine

the CGU’s recoverable amount. Reversal

of an impairment loss is recognised as

income in the income statement net of

depreciation if no impairment loss had

been recognised for the CGU.

Basis for impairment testing

Impairment

For the purpose of assessing impairment

losses, intangible assets, and property,

plant, and equipment are grouped at the

level at which there is separately

identifiable cash flows (cash-generating

units (CGUs)).

The cash generating units (CGUs) are

made up of individual offshore and

onshore wind farms and solar PV farms,

each of which generates cash flows for the

segment independently of each other.

CGUs are assessed for impairment

whenever events or circumstances

indicate that the carrying amount of an

asset or CGU may not be recoverable. If

any indication of impairment exists, an

estimate of the asset’s or CGU’s

recoverable amount is made.

Due to the recent adverse market

developments in the US offshore wind

market in the form of rising interest rates,

unexpected delays in our supply chains,

and other challenges, we have undertaken

impairment tests for the relevant CGUs.

The value of a CGU is impaired if the net

book value exceeds the recoverable

amount, which is the higher of the

estimated value-in-use and the fair value

less costs of disposal. The value-in-use is

calculated as the discounted value of the

estimated future net cash flows based on

The high probabilities for Revolution Wind and

Sunrise Wind qualifying for the additional 10 %

ITC bonus credits are based on our assess-

ment that the onshore substations are

located on brownfield sites as defined by the

current ‘energy communities’ guidance.

Potential consequences of further adverse

development

In addition to the sensitivities described,

further adverse developments may

potentially lead us to cease development of

or reconfigure projects currently under devel-

opment. Besides impairing the capitalised

value for these projects, ceasing to develop

projects could lead to compensation to

suppliers or other stakeholders for cancelling

contracts. Costs related to cancelling

contracts will be recognised as ‘Other

operating expenses’ in our financial

statements (part of EBITDA) when the

obligation arises and to the extent these

exceed already recognised onerous contracts.

Consolidated financial statements

Interim financial report First nine months 2023

33/42

5. Other operating income and expenses

Other operating income

In 9M 2023, ‘Gain on divestment of assets’ was

primarily related to the divestment of London

Array, adjustment of provisions towards

partners, and other minor adjustments to

finalised projects.

In 9M 2022, ’Gain on divestment of assets’

primarily concerned our 50 % farm-down of

Hornsea 2 in September and the 50 %

farm-down of Borkum Riffgrund 3 in February.

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 9M 2023.

In Q3 2023, ‘Miscellaneous operating income’

primarily related to adjustment of provisions

toward partners.

6. Financial income and expenses

The table shows net financial income and expenses corresponding to our

internal reporting.

Exchange rate adjustments and hedging contracts entered to hedge currency

risks are presented net under ‘Exchange rate adjustments, net’.

In 9M 2022, ‘Value adjustments of derivatives, net’ and ‘Value adjustments of

securities at market value, net’ were both impacted by the significant increase

in interest rates.

Negative ‘Exchange rate adjustments, net’ in 9M 2023 were mostly driven by

the increase in the GBP/DKK exchange rate. The GBP/DKK rate decreased

during 9M 2022, which led to positive exchange rate adjustments for that

period.

Other operating income

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Gain on divestment of assets 5,103 11,009 3,753 9,069

Insurance compensation 20 - 20 -

US tax credits and tax attributes 1,977 1,844 581 597

Other compensation 410 128 135 31

Miscellaneous operating income 673 211 460 62

Total other operating income 8,183 13,192 4,949 9,759

Other operating expenses

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Ineffective hedges, etc. 239 3,451 (175) 2,191

Loss on divestment of assets 50 67 3 11

Miscellaneous operating expenses 59 190 21 122

Total other operating expenses 348 3,708 (151) 2,324

Net financial income and expenses

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Interest expenses, net (1,300) (1,339) (431) (657)

Interest expenses, leasing (209) (196) (70) (81)

Interest element of provisions, etc. (528) (364) (176) (125)

Tax equity partner's contractual return (768) (814) (264) (251)

Value adjustments of derivatives, net (49) 1,675 121 559

Value adjustments of securities at market

value, net (193) (1,823) (52) (574)

Exchange rate adjustments, net (452) 1,303 731 924

Other financial income and expenses 55 7 13 (12)

Net financial income and expenses (3,444) (1,551) (128) (217)

Consolidated financial statements

Interim financial report First nine months 2023

34/42

8. Reserves7. Gross and net investments

Gross and net investments

DKKm 9M 2023 9M 2022 Q3 2023 Q3 2022

Cash flows from investing activities (24,441) (1,972) (1,744) 8,850

Dividends received and capital reductions

reversed (12) (16) (12) 6

Purchase and sale of securities, reversed 5,119 (555) (1,355) (107)

Loans to associates and joint ventures, reversed 53 - 8 -

Sale of non-current assets, reversed (6,189) (24,107) (6,101) (22,195)

Interest-bearing debt in acquired enterprises and

asset groups - (972) - (972)

Restricted cash in acquired enterprises - 1 - 1

Gross investments (25,470) (27,621) (9,204) (14,417)

Transactions with non-controlling interests in

connection with divestments and acquisitions (6,508) 546 (4,366) 264

Sale of non-current assets 6,189 24,107 6,101 22,195

Divestments (319) 24,653 1,735 22,459

Net investments (25,789) (2,968) (7,469) 8,042

Reserves 2023

DKKm

Foreign

currency

translation

reserve

Hedging

reserve

Total

reserves

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

Exchange rate adjustments 1,070 - 1,070

Value adjustments of hedging reserve - 20,548 20,548

Value adjustments transferred to:

Revenue - (1,196) (1,196)

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

Other operating expenses - 239 239

Financial income and expenses - (3) (3)

Tax:

Tax on hedging and currency adjustments (260) (4,270) (4,530)

Movement in comprehensive income for the period 730 15,339 16,069

Total reserves including tax at 30 September 5 (10,403) (10,398)

Total reserves excluding tax at 30 September (570) (12,158) (12,728)

Reserves 2022

DKKm

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

Exchange rate adjustments 1,606 - 1,606

Value adjustments of hedging reserve - (73,706) (73,706)

Value adjustments transferred to:

Revenue - 10,970 10,970

Other operating income 574 8,875 9,449

Other operating expenses - 3,797 3,797

Financial income and expenses - (686) (686)

Property, plant, and equipment - (118) (118)

Tax:

Tax on hedging and currency adjustments 233 6,956 7,189

Movement in comprehensive income for the period 2,413 (43,912) (41,499)

Total reserves including tax at 30 September 3,888 (70,165) (66,277)

Total reserves excluding tax at 30 September 4,132 (84,292) (80,160)

Interim financial report First nine months 2023

35/42

Consolidated financial statements

Tax on profit (loss) for the period

Tax on profit (loss) was DKK 315 million for the

first nine months of 2023 compared to

DKK 1,824 million for the first nine months of

2022.

Effective tax rate

The effective tax rate for the first nine months

of 2023 was -2 %. The effective tax rate was

affected by a non-taxable gain on London

Array, unrecognised deferred tax assets

Effective tax rate

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

basis of the profit (loss) before tax.

‘Impairment losses’ includes an unrecognised deferred tax asset related to

impairment losses on US projects.

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

positions, tax concerning previous years, and unrecognised tax losses.

9. Tax on profit (loss) for the period

related to impairment losses on our US

portfolio, and a reversal of a recognised

deferred tax liability in the US related to tax

equity contributions for Ocean Wind 1 due to

our acquisition of PSEG’s 25 % equity stake in

the project. 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 farm Old 300 and

the offshore wind farm South Fork Wind. The

deferred tax liabilities regarding Old 300 and

South Fork Wind will increase until COD.

Accounting policies

Effective tax rate

The estimated average annual tax rate is

separated into four different categories:

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

on divestments, 3) impacts from tax

equity partnerships in the US, and 4) other

adjustments not related to the current year’s

profit (loss).

9M 2023 9M 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 804 n.a. (902) n.a.

Gain (loss) on divestment of enterprises and assets 4,359 - n.a. 11,103 - n.a.

Impairment losses (7,054) n.a. - n.a.

Other adjustments (280) n.a. 444 n.a.

Remaining business (23,942) 6,215 26 % 6,046 (1,366) 23 %

Effective tax for the period (19,583) (315) (2 %) 17,149 (1,824) 11 %

Consolidated financial statements

Interim financial report First nine months 2023

36/42

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 September 2023.

Energy exposure 1 October 2023 - 30 September 2028

DKKbn

Currency exposure 1 October 2023 - 30 September 2028

DKKbn

10. Market risks

Due to decreases in energy prices in

2023, the loss on hedges and power

purchase agreements (PPAs) has

been reduced.

At 30 September 2023, the pre-tax

loss of the hedging reserve was

DKK 12.2 billion, of which DKK 13.5

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 nine months 2023

37/42

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.

11. 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 September

2023.

If intermittency-adjusted

power prices in Germany as

of 30 September 2023 in-

creased by 25 %, the market

value would decrease by

DKK 1,437 million.

Assets Liabilities

Fair value hierarchy

DKKm

Inventories Securities Derivatives Derivatives

2023

Quoted prices 1,660 - 5,398 5,541

Observable input - 29,988 7,521 11,631

Non-observable input - - 864 10,112

Total 30 September 2023 1,660 29,988 13,783 27,284

2022

Quoted prices 5,675 - 24,260 29,782

Observable input - 18,803 38,792 93,505

Non-observable input - - 1,458 24,546

Total 30 September 2022 5,675 18,803 64,510 147,833

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 813 (1,464)

Value adjustments through other

comprehensive income 2,418 (11,037)

Sales/redemptions 1,186 1,430

Purchases/issues 610 (3,445)

Transferred from quoted prices and

observable input - (1,228)

Transferred to quoted prices and observable

input 412 104

Market value at 30 September (9,248) (23,088)

Non-observable input per commodity

price input

DKKm 2023 2022

US power prices (6,683) (8,247)

German power prices (2,615) (9,679)

UK power prices (83) (3,408)

Irish power prices (314) (997)

Other power prices 455 (1,732)

Gas prices (8) 975

Total (9,248) (23,088)

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) 539 400 901 (1,437) 1,437

Ireland (2023-2042) 598 442 1,047 (76) 76

US ERCOT (2023-2030) 312 102 939 (3,372) 3,726

US SPP (2023-2030) 228 147 385 (505) 679

US MISO (2023-2033) 332 180 455 (575) 555

Consolidated financial statements

Interim financial report First nine months 2023

38/42

Interest-bearing net debt totalled DKK 42,892 million at 30 September 2023, which was an increase

of DKK 12,321 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 16,129 million, partly

countered by an increase in securities and cash of DKK 4,139 million.

12. Interest-bearing debt and FFO

Market value of bond and bank debt

At 30 September 2023, the market values of

bond and bank debts were DKK 63.7 billion

and DKK 10.2 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 September

2023

31 December

2022

30 September

2022

Interest-bearing debt:

Bank debt 10,206 8,913 9,415

Bond debt 70,497 54,368 54,900

Total bond and bank debt 80,703 63,281 64,315

Tax equity liability 1,294 1,236 1,559

Lease liability 8,860 8,266 8,492

Other interest-bearing debt:

Debt in connection with divestments 2,999 2,904 -

Debt from receiving collateral under credit support annexes 358 1,196 2,281

Other interest-bearing debt 169 824 775

Total interest-bearing debt 94,383 77,707 77,422

Interest-bearing assets:

Securities 29,988 25,197 18,803

Cash 15,526 16,178 7,280

Receivables from associates and joint ventures 54 - -

Cash, not available for use 236 2,471 2,138

Other receivables:

Receivables from placing collateral under credit support

annexes 4,367 2,449 2,730

Receivables in connection with divestments 751 713 770

Other receivables 569 128 -

Total interest-bearing assets 51,491 47,136 31,721

Total net interest-bearing debt 42,892 30,571 45,701

Consolidated financial statements

Interim financial report First nine months 2023

39/42

12. Interest-bearing debt and FFO (continued)

1 Last 12 months.

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

Funds from operations (FFO) LTM

DKKm

30 September

2023

31 December

2022

30 September

2022

EBITDA 26,099 32,057 33,614

Change in provisions and other adjustments (710) (2,213) (1,002)

Change in derivatives 7,900 (8,687) (13,406)

Variation margin (add back) (13,056) 10,332 17,140

Reversal of gain (loss) on divestment of assets (4,995) (10,885) (13,236)

Income tax paid (2,158) (1,263) (1,260)

Interest and similar items, received/paid (928) (563) (380)

Reversal of interest expenses transferred to assets (446) (586) (756)

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

Dividends received and capital reductions 19 23 17

Funds from operations (FFO) 11,523 17,951 20,494

Adjusted interest-bearing net debt

DKKm

30 September

2023

31 December

2022

30 September

2022

Total interest-bearing net debt 42,892 30,571 45,701

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

Other interest-bearing debt, add back (3,526) (4,924) (3,056)

Other interest-bearing receivables, add back 5,687 3,290 3,500

Cash and securities not available for distribution,

excluding repo loans 642 3,241 2,910

Total adjusted interest-bearing net debt 55,247 42,075 58,047

Funds from operations (FFO)/

adjusted interest-bearing net debt, %

30 September

2023

31 December

2022

30 September

2022

Funds from operations (FFO)/

adjusted interest-bearing net debt 20.9 % 42.7 % 35.3 %

Consolidated financial statements

Interim financial report First nine months 2023

40/42

Financial resources

DKK billion

13. Financial resources

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 September 2023, 2 % (2022: 31 %)

of our power and gas trades and 91 %

(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

guarantees, where possible. At the end of

September 2023, we had covered EUR 0.6

Financial resources

At 30 September 2023, financial resources

amounted to DKK 89.2 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.

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

risk that will occur if we gain on the

transaction.

DKK 97.8 billion

DKK 89.2 billion

Collateral and margin postings

DKK billion

DKK 17.3 billion

DKK 11.1 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.

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 11.1 billion at

30 September 2023. The decrease was

primarily driven by the large decrease in power

and gas prices. Collateral payments related to

initial margins and variation margins

decreased by DKK 2.4 billion and DKK 4.4

billion, respectively, during the first nine

months and amounted to DKK 6.6 billion at

30 September 2023. The decrease in initial

margins and variation margins consists of

DKK 6.5 billion in cash and DKK 0.3 billion in

bonds.

Consolidated financial statements

Interim financial report First nine months 2023

41/42

14. Subsequent events

Rejection from the New York Public Service

Commission (NYPSC)

In 2019, Sunrise Wind signed a 25-year OREC

purchase-and-sale agreement with the

New York State Energy Research and

Development Authority (NYSERDA), with an

OREC strike price at USD 110 per MWh.

On 12 October 2023, our request to the state

of New York to increase the OREC strike price

to USD 140 per MWh was denied.

See more in CEO’s review and in note 4

’Impairment’.

Decision to cease further development of

Ocean Wind 1 and Ocean Wind 2

On 31 October, we decided to cease further

development of Ocean Wind 1 and Ocean

Wind 2.

See more in CEO’s review and in note 4

’Impairment’.

Consolidated financial statements

Interim financial report First nine months 2023

42/42

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 September 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 September 2023 and of the results of the

Group's operations and cash flows for the

period 1 January - 30 September 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, 1 November 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

19/42

Management’s review

Interim financial report First nine months 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, Taiwan

Publication

1 November 2023