�
Annual report 2024
Contents
Management’s review *
Overview
Strategic ambitions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6
Performance highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7
Letter to our stakeholders � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
Our business � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 13
Our footprint � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14
Outlook
Financial and ESG outlook 2025 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16
Financial targets and policies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18
Strategy and business
The renewable energy market � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
Our strategy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21
Executing our strategy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 23
Enterprise risk management � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27
Performance
Full-year results � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 32
Five-year summary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36
Fourth quarter � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 37
Quarterly summary, 2023-2024 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42
Corporate governance
Governance framework � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 44
Board of Directors � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46
Group Executive Team � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 50
Summary of our remuneration report � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 53
Shareholder information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 54
Sustainability statements *
General
Basis for preparation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 59
ESRS disclosure requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 60
Sustainability governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63
Our business model and how we create value � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 65
Our strategy and impact on sustainability matters� � � � � � � � � � � � � � � � � � � � � � � � � � � 66
Double materiality assessment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 67
Interests and views of our stakeholders � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 75
Sustainability due diligence � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 77
ESRS data points from other EU legislation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 78
Environment
Climate change � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 81
EU taxonomy for sustainable activities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 103
Biodiversity and ecosystems � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 108
Resource use and circular economy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 116
Social
Own workforce � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 124
Workers in the value chain � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 137
Affected communities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 145
Governance
Business conduct � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 153
Financial statements
Consolidated financial statements
Consolidated statement of income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 159
Consolidated statement of comprehensive income � � � � � � � � � � � � � � � � � � � � � � � 159
Consolidated statement of financial position � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 160
Consolidated statement of shareholders’ equity � � � � � � � � � � � � � � � � � � � � � � � � � � � 161
Consolidated statement of cash flows � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 162
Notes
Parent company financial statements
Income statement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 239
Statement of financial position � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 239
Statement of changes in equity � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 240
Notes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 241
Management’s statement, auditor’s reports, and glossary
Statement by the Executive Board and the Board of Directors � � � � � � � � � � � � 249
Independent Auditor’s Reports � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 250
Independent Auditor’s Limited Assurance Report on
Sustainability Statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 255
Glossary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 257
Get an overview of all of our reporting material by downloading
our reports and investor presentations.
Remuneration report, Green finance impact report.
See our reports at orsted.com.
* Our management report consists of two parts: the management’s
review and the sustainability statements.
2 Management’s reviewØRSTED ANNUAL REPORT 2024
I’m delighted to welcome our new
CEO Rasmus Errboe. I’m convinced
that Rasmus is the right person to
lead the company.
Lene Skole
Chair
I’m honoured and humbled to step
into the role of CEO of a company I’ve
proudly served for the past 13 years.
Rasmus Errboe
Group President and CEO
Read more in our letter to our stakeholders on page 9.
4 Management’s reviewØRSTED ANNUAL REPORT 2024
→
Wind turbine technicians aboard TSS Pioneer prepare to
cross the motion-compensated gangway to work on Greater
Changhua 1 in Taiwan. Inaugurated in April 2024 together with
Greater Changhua 2a, these are the Asia-Pacific region’s largest
offshore wind farms, with a total installed capacity of 900 MW.
They are the first two wind farms in the Greater Changhua
offshore wind zone, with more farms in the pipeline.
Overview
6 Strategic ambitions
7 Performance highlights
9 Letter to our stakeholders
13 Ou r b u si n e s s
14 Ou r footp ri nt
5 Management’s reviewØRSTED ANNUAL REPORT 2024
27. 3
22.0
18.2
Installed renewable capacity
Gross capacity, GW
Offshore
Onshore
Bioenergy
2024
installed
capacity
2026
ambition
Installed
and under
construction
1
See page 91 in section ‘Climate change’ for details on our SBTi-validated climate targets.
2
The targeted range is not a hurdle rate; consequently, some projects might deviate from the targeted range.
Strategic ambitions
We exclusively deploy
green and sustainable
long-term financing,
and all projects are
taxonomy-aligned.
40 : 60
women : men
Gender balance in our total
workforce by 2030
Net-positive
biodiversity impact
from all new renewable
energy projects
commissioned from
2030, at the latest
~13 %
Average ROCE
2024-2030
150-300 bps
Targeted range for spread to WACC
2
at time of bid/FID (whichever comes first)
for individual projects
Group EBITDA (excl. new partnerships
and cancellation fees)
DKKbn
24.8
29-33
2024 2026
12 % CAGR
↓ More on our strategy on pages 21-22.
Science-based 2040 net-zero target,
validated by SBTi
GHG emissions intensity, g CO
2
e/kWh
Scopes 1-3 (excl. gas sales)
322
75
<2.9
80
127
2023 2024 20402018 2030
-99 %-7 7 %
Science-
based
targets
1
// //
6 Management’s review
|
OverviewØRSTED ANNUAL REPORT 2024
Performance highlights
Follow up on outlook
announced for 2024
EBITDA realised
DKKbn
Guidance (DKKbn) (7 Feb.): 23-26,
(5 Nov.): 24-26
With EBITDA excluding new partnerships and
cancellation fees totalling DKK 24.8 billion,
earnings ended within our original guidance
of DKK 23-26 billion, although with higher
earnings in Offshore and lower earnings in
Bioenergy & Other than expected.
24.8
42.8
Investments realised
DKKbn
Guidance (DKKbn) (7 Feb.): 48-52,
(15 Aug.): 44-48, (5 Nov.): 36-40
Investments totalled DKK 42.8 billion and
thus ended below our original guidance but
above our latest guidance range of DKK
36-40 billion. The increase was due to timing
effects across our construction portfolio, with
a larger amount of milestone payments being
paid in 2024.
2023
38.5
2024
42.8
2022
37.4
Cash flow and balance sheet
Gross investments
DKKbn
Our gross investments reached
DKK 42.8 billion and was mainly
driven by our construction of wind
and solar assets.
42.8
ROCE was 4.5 % for the year. Adjusted for
impairments and cancellation fees, ROCE
amounted to 10.1 % in 2024.
Profit for the year was DKK 0.0 billion.
Profit for the year excluding cancellation
fees (DKK 7.3 billion) and impairments
after tax (DKK -13.7 billion) amounted to
DKK 6.4 billion.
Our net debt increased to
DKK 58.0 billion.
The credit metric funds from operations
(FFO) relative to adjusted net debt
amounted to 13 % in 2024 (22 % excluding
cancellation fees).
Profits and return
Excl. new partnerships and cancellation fees New partnerships
Excl. impairments and cancellation fees Cancellation fees
Operating profit (EBITDA)
DKKbn
EBITDA totalled DKK 32.0 billion. EBITDA
excluding cancellation fees (DKK 7.3
billion) and new partnerships (DKK -0.1
billion) amounted to DKK 24.8 billion.
32.0
2023
18.7
20242022
32.0
32.1
-14 .2 %
17 %
12.9 % 14.9
10.1 %
Return on capital employed (ROCE)
%
2023
2022
2024
Profit for the year
DKKbn
-20.2
0.0
15.0
6.4
2023
2022
2024
2023
2022
2024
47. 4
30.6
58.0
Interest-bearing net debt
DKKbn
2023
2022
2024
29 %
43 %
13 %
Credit metric (FFO/adjusted net debt)
%
(-0.1)
7. 3
24.8
7 Management’s review
|
OverviewØRSTED ANNUAL REPORT 2024
Follow up on outlook
announced for 2024
Lower
GHG emissions intensity
(scopes 1 and 2), realised
g CO
2
e/kWh
Guidance (7 Feb.): Lower
The green house gas emissions
intensity for scopes 1 and 2
decreased in 2024 due to higher
renewable generation and ceasing
of coal-based power generation.
Higher
GHG emissions intensity
(scopes 1-3, excl. gas sales),
realised
g CO
2
e/kWh
GHG emissions from gas sales
(scope 3), realised
million tonnes CO
2
e
Guidance (7 Feb.): Higher
Scope 3 emissions increased as we
commissioned more renewable
assets. Consequently, our scope 1-3
GHG intensity also increased.
In line
Gender balance – gender
with lowest representation
Women
Guidance (7 Feb.): Higher
The gender balance was slightly
below last year; however, 37 % of
new hires were women in 2024.
Nationality and gender
Diversity in the Board of Directors
and the Group Executive Team
(all members).
In 2024, we held our first interna-
tional election for employee-
elected board members.
Governance
40 %
Women
60 %
Men
47 %
Danish
53 %
Other
SocialEnvironment
2.7
2.8 in 2023/3.1 in 2022
Safety
Total recordable injury rate (TRIR)
We saw a further improvement in
our safety performance in 2024.
34:66
35:65 in 2023/33:67 in 2022
Gender balance
(women:men)
In 2024, 37 % of all new hires
were women.
Employee satisfaction
Index 0-100, 2022/2023/2024
In 2024, we concluded our organ-
isational efficiency programme,
including redundancy rounds.
Our employee satisfaction survey,
People Matter, showed a decrease
from last year, resulting in a satis-
faction and motivation score of 70.
9.0
80
127
147
The greenhouse gas intensity from our
heat and power generation and other
operating activities (scopes 1 and 2)
was 16 g CO
2
e/kWh. Including scope 3
(excl. gas), the greenhouse gas intensity
was 127 g CO
2
e/kWh. The increase in
GHG intensities was due to more projects
reaching COD.
Our scope 3 greenhouse gas emis-
sions were 9.0 million tonnes CO
2
e.
The increase in emissions was mainly
a result of an additional 2.4 GW
renewable asset capacity being
commissioned in 2024.
Greenhouse gas emissions intensity
CO
2
e/kWh
2024
2023
2022
Greenhouse gas emissions
(scope 3), million tonnes, CO
2
e
Installed renewable capacity increased
by 16 % to 18.2 GW in 2024, mainly due
to the commissioning of the offshore
wind farms Greater Changhua 1 and 2a
and the onshore assets Eleven Mile Solar
Center, Mockingbird, and Sparta Solar.
18.2
Installed renewable capacity
GW
60
38
16
↓ See more in our ‘Corporate governance’ section.
15.7
18.2
15.1
20242022 2023
70
7676
8 Management’s review
|
OverviewØRSTED ANNUAL REPORT 2024
Navigating a challenging industry
Letter to our stakeholders
Global electricity demand is projected to double
by 2050, driven by the electrification of transport,
heating, cooling, industrial processes, and the expan-
sion of AI and data centres. While the exact electricity
demand depends on the much-needed electrification,
electricity is expected to become the largest global
energy carrier by 2050.
Future demand must be met by affordable, secure, and
renewable energy sources. The renewables industry has
seen substantial build-out in recent years, and renewa-
ble energy projects can expand local supply chains, gen-
erate jobs, boost manufacturing, improve infrastructure,
and create local investments and long-term opportuni-
ties for growth in local communities. Diversified energy
portfolios, including a higher share of renewables, can
improve energy security and reliability by reducing
dependency on imported fuels.
Furthermore, renewables are instrumental in decar-
bonising energy systems and industrial processes and
in reaching global climate targets. Also, renewables
can drive nature restoration, if done right.
Our vision is to create a world that runs entirely on
green energy, and we are ready to do our part. How-
ever, to unlock the full potential of renewables in
the future, governments, private sector, and local
communities need to collaborate closely to facili-
tate the supply of renewable energy, set targets for a
renewable build-out, and expand the grid infrastruc-
ture to handle it. This must be done in a way which
ensures value creation for all parties, both in the short
and long term.
We are adapting to the market development
In the past 12 months, the industry has been charac-
terised by continued and more challenging headwinds
relating to regulatory, supply chain, and macroeco-
nomic developments. Together with project-specific
challenges related to our US offshore wind projects
under construction, this has had an adverse impact
on our capital structure. Faced by this reality, we are
updating our business plan to be more focused and to
support our target of a solid investment grade rating.
As part of this, we are stepping away from our 2030
GW ambition and EBITDA target, and we are reducing
our investment programme.
We will continue to be active across our three regions,
but we will focus our capital allocation. Thus, when
we pursue new development opportunities, we will
first and foremost prioritise the most financially
attractive offshore wind opportunities in regions and
countries where we see the most attractive frame-
work conditions and investment environment.
With the reduced growth ambition towards 2030 and a
disciplined approach to capital allocation, Ørsted will
inevitable become a more lean and focused company.
Therefore, we will take measures, beyond the 2024 initi-
atives, to continuously adapt and rightsize our cost base
and organisation to fit our value and build-out ambition.
To deliver on the plan, we will reduce our investment
programme by approx. 25 % to DKK 210-230 billion
in the period 2024-2030, ensure the delivery of our
divestment programme, and focus our immediate
efforts on the execution of our existing construction
portfolio. Expectedly, this will roughly double our
installed offshore wind capacity from 9.9 GW to 18.0
GW and increase our total installed renewable capac-
ity to 27.3 GW by the end of 2027.
We expect to deliver an EBITDA of DKK 29-33 billion
by 2026 and to achieve a return on capital employed
(ROCE) of 13 % on average for the period 2024-2030.
During 2024, we achieved significant strategic steps,
and we have advanced five transformational and
company-wide business priorities to significantly
improve our ability to enhance value creation.
First, we have advanced our revised project and oper-
ating model, which will create clearer accountability
and stronger risk management throughout the devel-
opment and construction phases of our offshore pro-
jects. Second, we are fully on track to deliver perma-
nent cost savings of DKK 1 billion per year as a part
of our organisational efficiency initiative. Third, we
have progressed our initiative to improve our revenue
capabilities to maximise the value of our energy gen-
eration and improve our competitiveness by expand-
ing and leveraging our asset-backed trading compe-
tences further. Fourth, we are enhancing the value of
our operating fleet by optimising the operations and
maintenance of our assets to achieve higher availabil-
ity, at the right time. And finally, we have commenced
an initiative to strengthen our supply chain and risk
management capabilities to leverage our leading
position and improve our competitiveness in future
auctions. Altogether, we are confident that these
company-wide and transformational business priori-
ties will have a significant positive impact on our abil-
ity to deliver cost-savings, increase revenue, and help
improve our overall competitiveness.
In 2024, we added 1.0 GW of installed capacity to our
offshore portfolio by commissioning Greater Changhua
1 and 2a and South Fork and 1.4 GW to our onshore
portfolio by commissioning four solar farms, including
Mockingbird, our largest solar farm to date. By the end
of 2024, our total installed capacity reached 18.2 GW.
9 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
During 2024, we also advanced eight projects with a
total capacity of 1.8 GW to FID, spanning across our
portfolio of offshore and onshore wind as well as solar
and storage.
Following the award of an offshore wind renewable
energy certificate (OREC) in New York’s fourth off-
shore wind solicitation, we added Sunrise Wind to our
construction portfolio in 2024. With this addition, we
had 6.9 GW of offshore capacity under construction
by the end of 2024. In early 2025, we took FID on the
wind farm Baltica 2, further adding 1.5 GW to our con-
struction portfolio.
In our onshore business, we took FID on several pro-
jects in 2024, the most significant being our onshore
wind farm Badger Wind and a storage project adja-
cent to our solar farm Old 300. By the end of 2024, we
had 0.8 GW of onshore capacity under construction.
In the UK, we reached a significant milestone in 2024,
when the UK Department for Energy Security & Net
Zero (DESNZ) awarded us 3.5 GW of capacity for our
offshore wind farms Hornsea 3 and Hornsea 4. When
operational, Hornsea 3 will be the world’s single larg-
est offshore wind farm with a capacity of 3 GW.
Most of our projects are progressing according to plan,
and we work diligently to de-risk our portfolio. How-
ever, we continue to face and manage supply chain and
construction challenges at our two US offshore con-
struction projects Revolution Wind and Sunrise Wind.
Our partnership and divestment programme is on track,
with several divestments initiated and concluded during
the year. Total proceeds from the transactions make up
DKK 22 billion of the target of DKK 70-80 billion through
2026. We have divested 12.45 % of four operational
UK offshore wind farms with a combined total capac-
ity of 3.5 GW to Brookfield and 50 % of our Taiwanese
offshore wind farm Greater Changhua 4 (583 MW) to
Cathay Life Insurance. In Onshore, we made a partial
divestment of four US operational wind farms (957 MW)
to Stonepeak and a partial divestment of the solar farm
Mockingbird to Energy Capital Partners (ECP). Addition-
ally in the partnership with ECP, we signed an agree-
ment to partially divest our solar farm Sparta Solar and
our battery storage project Eleven Mile Solar Center,
with closings expected in 2025. Lastly, we divested our
onshore platform in France to ENGIE.
Innovation is another lever to improve our competitive-
ness, and we have continued to be at the forefront of the
industry. In 2024, we developed a new low-noise founda-
tion installation method, which strengthens existing pro-
tections to marine life. Beyond the noise reduction, this
new technology is a step change in offshore wind mono-
pile installation that, once adopted at scale, can over-
come pile refusal challenges and provide for cheaper
and faster installation than any other monopile instal-
lation technology. In addition, we launched the world’s
first heavy-lift cargo drone operations at our offshore
wind farm Borssele 1 & 2. The drones will improve opera-
tional efficiency and safety in the offshore wind industry.
The organisational efficiency programme included
company-wide and coordinated redundancy rounds,
which were concluded in November. This has had an
impact on our employee satisfaction score. Motivation
and well-being of our colleagues are of the highest
importance to us, and increasing employee satisfac-
tion will be a key priority.
Operational earnings delivering as expected
EBITDA totalled DKK 32.0 billion in 2024 compared
to DKK 18.7 billion in 2023. EBITDA excluding new
partnerships and cancellation fees amounted to
DKK 24.8 billion, an increase of DKK 0.7 billion
compared to 2023 and in line with our guidance of
DKK 24-26 billion. Earnings in 2024 were positively
impacted by Ocean Wind 1 cancellation fees, where
we have continued to work through our supplier
contracts and finalised negotiation of several
contracts with a better outcome than assumed.
Net of the provision for ceasing FlagshipONE, this
has led to a positive EBITDA impact of DKK 7.3 billion.
EBITDA from new partnerships in 2024 was limited
and related to the 50 % farm-down of Greater
Changhua 4 and Mockingbird.
Earnings from sites in operation in Offshore increased
with almost 20 % and amounted to DKK 23.8 billion in
2024, mainly due to ramp-up of generation at Greater
Changhua 1 and 2a, South Fork, and Gode Wind 3,
higher wind speeds, and a higher pricing of the infla-
tion-indexed CfDs and green certificates. Lower avail-
ability dampened the increase in 2024.
In 2024, we recognised net impairments of DKK 15.6
billion, with the majority (DKK 14.1 billion) relating to
our US projects and from our decision to cease con-
struction of FlagshipONE (DKK 1.5 billion). The US
impairments were due to an increase in the US long-
dated interest rate, a lower market-informed valu-
ation of our US seabeds, construction delays, and
higher expected costs for our US projects Revolution
Wind and Sunrise Wind.
ROCE was 4.5 % for the year. Adjusted for impairments
and cancellation fees, ROCE amounted to 10.1 % in
2024. Profit for the year amounted to DKK 0.0 billion.
Excluding impairments (after tax) and cancellation
fees, profit for the year was DKK 6.4 billion.
In the UK, we reached a significant milestone
in 2024, when the UK Department for Energy
Security & Net Zero (DESNZ) awarded us
3.5 GW of capacity for our offshore wind
farms Hornsea 3 and Hornsea 4.
10 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
Sustainability is at the core of our business
Our commitment to a sustainable build-out is at the
core of our business. Our three strategic sustainability
priorities – decarbonisation, biodiversity, and commu-
nity impact – play an enabling role in our strategy and
project delivery. They support that we mitigate risks
and deliver more resilient energy projects that also
drive a positive change for society and nature.
In 2024, we saw strong progress on all three priorities.
Among other things, we launched our ‘Biodiversity
measurement framework’ to guide transparent meas-
urement and reporting on our biodiversity impact.
We also reached the last big milestone in transform-
ing our energy production to renewable energy by
shutting down our last coal-fired power station. With
this, we are on track to reach our industry-leading
science-based target to reduce our scope 1 and 2
emissions intensity by 93 % since 2018 and to reach
our target of a 99 % renewable share of energy gener-
ation by 2025.
We have been reporting on sustainability for the last
two decades, and in 2024, we have further developed
our reporting to comply with the new European Sus-
tainability Reporting Standards (ESRS) framework. For
investors and other stakeholders, the standardisation
and transparency of this new regulation will ensure
greater comparability across companies’ sustainabil-
ity impacts, risks, and opportunities.
Long-term safety efforts pays off
In 2024, we reduced our total recordable injury rate
(TRIR). It is the second year in a row that we experi-
ence a reduction, and we see it as a result of our long-
term focused effort on safety. We welcome the reduc-
tion in TRIR, and we will continue our safety improve-
ment initiatives to ensure the trend continues.
Concluding remarks
The year 2024 proved to be a challenging year for the
industry and for Ørsted. We have experienced head-
winds and have therefore taken necessary actions
while leveraging our 30 years of experience to achieve
several milestones across our renewables portfolio.
We have made substantial divestments and advanced
our focused company-wide business priorities. We
have done this to ensure the strongest possible plat-
form to deliver consistent value in the years to come.
We believe in the long-term fundamentals of the
renewables industry and will continue to navigate
existing and new market challenges as well as engage
Rasmus Errboe
Group President and CEO
Lene Skole
Chair
↑ Greater Changhua 1 and 2a, Taiwan Strait, Taiwan.
proactively to restore investor confidence in Ørsted
and in offshore wind as an industry. In 2024, we have
worked relentlessly to strengthen and improve the
conditions for our industry in close dialogue with key
stakeholders, and we will continue this effort in 2025.
We will continue our journey to adapt to the new real-
ity by constantly improving our competitiveness to
remain one of the world’s leading developers, con-
structors, and generators of renewable assets.
On behalf of the Board, we would like to thank Mads
Nipper for his commitment to Ørsted’s vision and his
strong and constructive collaboration over the past
four years.
As a concluding remark, we would like to express
our sincere gratitude to our skilled colleagues, who,
throughout a year of uncertainty and redundancies,
yet again proved their unwavering commitment, and
who continue to drive the energy transition forward.
11 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
Business development and partnerships
7. 62.4
GW renewable energy under
construction by the end of 2024
1
GW renewable energy
reaching COD in 2024
For project progress, see page 25.
1
With the FID of Baltica 2 (1,498 MW) in January 2025, our capacity under construction is 9.1 GW.
253 MW
Gode Wind 3
Located in the German part of the North Sea,
our offshore wind farm Gode Wind 3 is producing
at full capacity and expected to reach COD in
Q1 2025.
920 MW
Greater Changhua 2b and 4
In Taiwan, we expect completion of our
two wind farms by the end of 2025.
924 MW
Sunrise Wind
We signed the final OREC agreement on our
US offshore wind farm and received the final
outstanding federal permit when our construc-
tion and operations plan (COP) was approved
by BOEM. During the year, we experienced
construction challenges and are progressing
on a tight schedule according to a revised plan.
We expect COD in H2 2027.
704 MW
Revolution Wind
During the year, we faced challenges with the
construction of the onshore substation and the
piling of one of the offshore substation mono-
piles. We have reassessed the risks related to
the US project and increased our contingencies.
We expect COD in 2026.
913 MW
Borkum Riffgrund 3
We expect construction of our German offshore
wind farm to be completed in Q1 2026.
2,852 MW/300 MW
Hornsea 3
We have been awarded contracts for difference
(CfD) for a 1,080 MW share of our offshore wind
farm. COD is expected in 2027. Additionally, we
took FID on a 300 MW battery storage system
co-located with Hornsea 3, which is expected to
be operational in H2 2027.
259 MW
Badger Wind
We took FID on our US onshore wind farm,
with expected COD in 2025.
250 MW
Old 300 storage (BESS)
We took FID on our battery energy storage
system (BESS) adjacent to the solar farm
Old 300 situated in Texas, the US, and con-
struction is expected to commence in Q1 2025.
262 MW
Onshore Europe
Construction of our European onshore
projects is on track.
Divestment programme
In the UK, we divested a minority share of
four operational UK offshore wind farms to
Brookfield, and in Taiwan, we divested 50 % of
our offshore wind farm Greater Changhua 4 to
Cathay Life Insurance. In the US, we partially
divested four operational onshore assets to
Stonepeak and three onshore projects to
Energy Capital Partners (ECP) with individual
closings in both 2024 and 2025. Additionally,
we divested our onshore platform in France
to Engie.
Hornsea 4 award
We were awarded contracts for difference
(CfD) for a 2,400 MW share of our offshore
wind project.
Deprioritising liquid
e-fuels short term
We have deprioritised our green fuels efforts
for now. Consequently, we ceased our liquid
e-fuels project FlagshipONE. We remain
committed to renewable hydrogen as an
important lever for offshore wind.
On track for SBTi-
validated target for 2025
We shut down our last coal-fired combined
heat and power plant in Esbjerg, Denmark. This
marks a major step in reducing our scope 1
and 2 GHG emissions from operations, and we
remain on track to achieve the SBTi-validated
target for 2025.
New lower-noise
installation technology
Building on existing marine life protections, we
have developed a new lower-noise installation
method, which strengthens existing protections
to marine life, and we successfully tested it at
our German offshore wind farm Gode Wind 3
in 2024. Once adopted at scale, it can provide
more efficient and cost-effective installation of
offshore wind foundations.
Feasibility licence
We were granted a feasibility license by the
Australian government to develop a large-scale
offshore wind project in Australia. Furthermore,
the government intends to grant us a license for
a second project. Combined, the two projects
have a potential capacity of up to 4.8 GW of
renewable energy.
900 MW
Greater Changhua 1 and 2a
Greater Changhua 1 and 2a are Taiwan’s
first large-scale offshore wind farms.
132 MW
South Fork
South Fork is New York’s first offshore
wind farm.
600 MW
Eleven Mile Solar Center
In Arizona , the Eleven Mile Solar Center, a solar
and battery energy storage system (BESS), will
provide power to businesses, homes, and Meta’s
planned data centre.
471 MW
Mockingbird
Mockingbird Solar Center, placed in Texas,
the US, is our largest solar farm to date.
250 MW
Sparta Solar
With the completion of the solar part of Helena
Energy Center, the combined wind and solar
farm, placed in Texas, the US, is now fully
operational (518 MW in total).
73 MW
Old 300
In Texas, the US, we completed the remaining
part of the solar farm Old 300 (430 MW in total).
Selected events
Executing on our business plan
12 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
Our business
How we create value
We create value by developing, construc ting, oper-
ating, and owning renewable assets and by providing
sustainable energy products to our customers.
What we do
Our portfolio includes offshore and onshore wind
farms, solar farms, energy storage, and heat
and power plants.
We develop our pipeline of renewable assets, we
construct them based on thorough supplier selection
and local content adherence, and we operate our
large portfolio.
We enter into long-term power purchase agreements
with strategic partners, and we manage and optimise
our large portfolio of renewable assets and partnerships.
For more details on our business model, including key
inputs, what we depend on, key outputs, and benefits
created, please refer to pages 65-66.
A sustainable approach
We have made it a core commitment to develop,
construct, and operate our renewable assets in an
environmentally and socially sustainable way, which
helps de-risk projects, enhance our license to operate,
and drive lasting, positive change for society – through
employment opportunities, community support, and
enhancing nature.
Non-exhaustive illustration
13 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
Renewable capacity
Consisting of 18.2 GW in operation (installed), 7.6 GW
under construction (FID’ed), and 5.2 GW awarded. In addition,
we have substantiated pipelines of 19 GW in Offshore and
16 GW in Onshore.
See pages 97-98 in our ‘Sustainability statements’ for more information.
31.0 GW
Denmark
3.0 GW
Offshore
CHP plants
Sales of energy
Sweden
Sales of energy
United Kingdom
11.3 GW
Offshore
Onshore
Storage
United States
of America
8.0 GW
Offshore
Onshore
Solar PV
Storage
The Netherlands
0.8 GW
Offshore
Germany
2.6 GW
Offshore
Onshore
Solar PV
Taiwan
1.9 GW
Offshore
Korea
Offshore
Australia
Offshore
Poland
2.8 GW
Offshore
Ireland
0.5 GW
Offshore
Onshore
Solar PV
Our footprint
Spain
Onshore
Capacity
GW
Capacity
In operation
Under construction
Awarded
United States of America
Offshore wind
Onshore wind
Solar PV
Storage
1.8
3.5
2.1
0.6
United Kingdom and Ireland
Offshore wind
Onshore wind
Solar PV
Storage
10.9
0.5
0.1
0.3
APAC
Offshore wind 1.9
Continental Europe
Offshore wind
Onshore wind
CHP, power
CHP, heat
7.0
0.1
2.1
2.9
14 Management’s review
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OverviewØRSTED ANNUAL REPORT 2024
→
The 83-metre-long service and operations vessel, Wind of
Hope, is dwarfed by the offshore wind turbines at Hornsea 2.
In September 2024, the UK government awarded us contracts
for difference for a 1,080 MW share of Hornsea 3, currently under
construction, and for a 2,400 MW share of Hornsea 4, currently
under development. When complete, the Hornsea zone will be by
far the largest in the world, with around 8 GW of installed capacity.
Outlook
16 Financial and ESG outlook 2025
18 Financial targets and policies
15 Management’s reviewØRSTED ANNUAL REPORT 2024
Financial and
ESG outlook 2025
Group EBITDA guidance
Our EBITDA guidance does not include earnings
from new partnership agreements and impact from
potential changes in cancellation fees relating to
ceasing the development or construction of projects.
Operating profit (EBITDA) excluding new partnership
agreements and cancellation fees is expected to be
DKK 25-28 billion in 2025.
As in previous years, we could see offsetting effects
between the business units compared to our directional
guidance.
Offshore – higher
Earnings from sites are expected to increase in 2025
compared to 2024, mainly due to:
· ramp-up of generation from Greater Changhua 1
and 2a, Greater Changhua 2b and 4, South Fork,
and Gode Wind 3, and compensation for grid delay
related to Borkum Riffgrund 3
· higher expected availability
· inflation adjustments on ROC and CfD farms, partly
offset by lower prices on merchant assets, a step
down in subsidy level for our older German assets,
and Anholt (DK) stepping out of subsidy
· partly offset by ramp-up of costs related to Revolu-
tion Wind and Sunrise Wind and slightly higher than
normal wind speeds in 2024.
Earnings from existing partnerships are expected to
increase compared to 2024, mainly driven by:
· negative effects from provisions and construction
contracts in 2024 not expected to be repeated
in 2025
· partly offset by higher costs related to M&A
activities.
‘Other’ in Offshore is expected to be more negative
than in 2024, mainly due to:
· higher expensed project development costs and
fixed costs.
Our EBITDA guidance for the Group is the prevailing guidance, whereas the directional earnings development per
business segment (and component) serves as a means to support this. Higher and lower indicate the direction of
the business unit’s earnings relative to the results for 2024.
Guidance on 2025 EBITDA without new partnerships and cancellation fees
DKKbn
Offshore Onshore Bio & Other
2024 2025Sites Existing
partnerships
OnshoreOther Bioenergy
& Other
24.8
~1.5
~1.0
~1.5
~0.2
~0.5 25-28
Outlook 2025
DKK billion
Realised
2024
Guidance
2025
EBITDA (without new partnerships, excl. cancellation fees) 24.8 25-28
Offshore 19.2 Higher
Onshore 4.0 Higher
Bioenergy & Other 1.1 Significantly
higher
Gross investments 42.8 50-54
ESG outlook
Greenhouse gas emissions intensity (scopes 1, 2), CO
2
e/kWh 16 Lower
Greenhouse gas emissions intensity (scopes 1-3 excl. gas sales), g CO
2
e/kWh 127 Lower
Greenhouse gas emissions from gas sales (scope 3), million tonnes CO
2
e 4.1 Higher
Gender balance – gender with lowest representation (female) 34 Higher
16 Management’s review
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OutlookØRSTED ANNUAL REPORT 2024
Onshore – higher
Earnings in Onshore (excluding new partnership
agreements) are expected to increase compared
to 2024.
The positive impact on EBITDA in 2025 is driven by:
· ramp-up of generation from Eleven Mile Solar
Center, Old 300, Badger Wind, and Mockingbird
· higher expected availability in the US
· partly offset by the impact from the 50 % farm-
down of Mockingbird in December 2024 and
Eleven Mile Solar Center and Sparta Solar in 2025
· ‘Other’ is expected to be more negative than in
2024, mainly due to higher project development
costs and from sale of components in 2024 not
expected to be repeated in 2025.
Bioenergy & Other – significantly higher
Earnings from CHP plants (including ancillary services)
and ‘Gas Markets & Infrastructure’ are expected to
increase compared to 2024.
The positive impact on EBITDA in 2025 is driven by
higher earnings from ‘Gas Markets & Infrastructure’
due to higher volumes expected from the Tyra field
(not owned by Ørsted), whereas earnings from our
CHP plants are expected to be in line with 2024.
Gross investments
Gross investments for 2025 are expected to amount
to DKK 50-54 billion, mainly driven by:
· Offshore (Sunrise Wind, Greater Changhua 2b and 4,
Revolution Wind, Hornsea 3, Baltica 2, and Borkum
Riffgrund 3)
· Onshore (Badger Wind, Old 300 BESS, and projects
from our substantiated pipeline in both the US
and Europe).
Our gross investments guidance for 2025 is particularly
sensitive to and can be impacted by changes in our
divestment programme and from changed timing in
payment schedules, etc.
Uncertainties, prices, and hedges
The most significant uncertainty to the operating
profit in 2025 is the power generation, which depends
on wind conditions, ramp-up of new assets, asset
availability, timing of possible farm-downs, and the
attractiveness of spreads on our CHP plants.
High gas and power price volatility could impact
earnings for the year through optimisation possibilities
of our gas storage and sourcing contracts as well as
higher balancing and intermittency costs.
Our wind and solar PV assets are largely subject
to prices that are indexed to inflation or are fixed
nominal, implying a high degree of revenue certainty,
setting aside the above-mentioned volume risk.
This means that we know the price (or minimum
price) per generated MWh for most wind farms in the
Netherlands, the US, and Germany and for the CfD
wind farms in the UK. For our British ROC wind farms,
we also know the subsidy per generated MWh, which
we will receive in addition to the market price.
In 2025, 80 % of our expected revenue from our
wind and solar PV assets is inflation-indexed or fixed
nominal. The remaining 20 % is exposed to fluctations
in power prices. Our hedging approach is to hedge up
to 70 % of this remaining merchant exposure. For 2025,
we have hedged approx. 45 % of this, leaving Ørsted
with an unhedged price exposure of 11 % from gener-
ation from our wind and solar PV assets. See note 6.2
‘Energy price risks’.
Greenhouse gas emissions
The greenhouse gas emissions intensity for scope 1
and 2 is expected to decrease in 2025 and meet our
science-based target of 10 g CO
2
e/kWh. The decrease
is due to higher expected renewable generation, and
as we ceased coal-based heat and power generation
in 2024. We also expect the scope 1-3 emissions
intensity to decrease as we will have fewer renewable
assets reaching COD in 2025 than in 2024 and higher
renewable generation.
We expect more gas delivered under our contract
with The Danish Underground Consortium (DUC),
following the gradual reopening of the Tyra gas field in
2024. Therefore, we expect an increase in our scope 3
emissions from gas sales.
§ Forward-looking statements
The annual report contains forward-looking
statements, which include projections of our
short- and long-term financial performance and
targets as well as our financial policies.
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, inflation rates, and interest
rate markets, the ability to uphold hedge
accounting, changes in legislation, regulations,
or standards, the renegotiation of contracts,
changes in the competitive environment in
our markets, reliability of supply, and market
volatility and disruptions from geopolitical
tensions.
Read more about the risks in the chapter on
‘Enterprise risk management’ and in note 6
‘Risk management’ in the financial statements.
Furthermore, the proceeds we can realise
from our anticipated farm-downs and divest-
ments as part of the measures we take to
support a robust capital structure are subject
to uncertainty.
17 Management’s review
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OutlookØRSTED ANNUAL REPORT 2024
Updated business plan
In the past 12 months, the industry has been charac-
terised by continued and more challenging headwinds.
Together with project-specific challenges related to
our US offshore wind projects under construction,
this has had an adverse impact on our capital struc-
ture. Therefore, we are adapting our business plan
to support our target of a solid investment grade
rating. As part of this, we are stepping away from our
2030 GW ambition and EBITDA target, and we are
reducing our investment programme.
Financial targets
We have three key financial targets to support our
self-funded build-out. The financial targets cover
(see details to the left):
· spread to WACC on investments
· EBITDA
· ROCE.
Financial policies and capital allocation
The Board of Directors has decided to pause dividend
payments for the financial years 2023-2025. Here-
after, the target is to reinstate dividend payments.
To ensure we have financial robustness and the
strength to operate in the international energy and
financial markets, we target a solid investment
grade rating with all three major rating agencies.
This includes an FFO/adjusted interest-bearing net
debt credit metric above 30 %.
Financial targets and policies
Spread to WACC on investments
Fully loaded unlevered life cycle spread
to WACC at the time of bid/FID
1
150-300 bps
Continuous
EBITDA
Group EBITDA excluding new partner-
ships and cancellation fees
DKK 29-33 billion
2026
ROCE
Average return on capital employed
~13 %
2024-2030
Rating
Solid investment grade with Moody’s/
S&P/Fitch
Capital structure
FFO/adjusted interest-bearing net debt
above 30 %
Dividend policy
No dividend payments for the financial
years 2023-2025. Target to reinstate
dividend from the financial year 2026.
Financial targets Financial policies
1
Targeted range for spread to WACC at time of bid/FID (whichever comes first) for individual projects.
The targeted range is not a hurdle rate, and consequently, there could be projects that deviate from
the targeted range.
Forward-looking statements are described on page 17.
18 Management’s review
|
OutlookØRSTED ANNUAL REPORT 2024
→
The offshore installation vessel Aeolus played a crucial role
in installing the 12 turbines that make up South Fork Wind,
off the coast of New York State in the US – along with hundreds
of US workers across the Northeast. Construction concluded
in March 2024. The offshore wind farm is the first in the
Empire State and America’s first in commercial scale, generating
enough renewable energy to power around 70,000 US homes.
Strategy
and business
20 The renewable energy market
21 Our strategy
23 Executing our strategy
27 Enterprise risk management
19 Management’s reviewØRSTED ANNUAL REPORT 2024
The renewable energy market
The outlook for the renewable energy market is
strong. Globally, we expect to reach 50 % renewable
electricity generation in 2030, with a vast majority
coming from wind and solar PV. Europe reached the
50 % threshold in 2024. Yet, to realise the full potential
of renewable energy sources in decarbonising our
energy systems, we need large-scale public and private
investment in renewable energy projects, innovation,
and infrastructure.
The renewable energy market
Global power demand is continuing to increase at a
fast pace, and renewable energy sources are essen-
tial to meet it. Geopolitical conflicts, reliance on
gas imports, and increasing global competitiveness
have underscored the importance of energy security
and independence. The build-out of AI data centres
provides new sources of demand. The already visible
impacts of climate change have made the need for a
sustainable energy transition clear.
While addressing these pressing challenges, the renew-
able energy transition also fosters local job creation
and can help protect nature. Renewable energy is a
lever to increase energy independence, create lasting
jobs, and support local communities.
Getting there will require public and private invest-
ment in the renewable transition, the creation of the
right conditions to scale up innovations, and that we
address the current barriers in the industry.
For the first time ever, half of the EU’s electricity
generation came from renewable energy sources
in 2024. Further, wind overtook gas to become the
EU’s second largest source of electricity (behind
nuclear energy). The UK procured an additional
9.6 GW of renewable energy in auction round 6,
including 5 GW offshore wind. It showed that the
UK is willing to incentivise renewable energy.
The US renewable energy industry, including
offshore and onshore technologies, continues to
have bipartisan support, driven by job creation and
domestic investments to help meet the country’s
increasing electricity demand. The recent executive
order from the Administration is being reviewed to
assess its impact on our US portfolio.
Towards 2030, we are thus anticipating a high growth
in the global renewable energy market, with total
combined capacity (offshore wind, onshore wind,
solar PV, and energy storage) expected to reach
>4,000 GW (excl. China).
However, difficult macroeconomic conditions
continued to cause headwinds and uncertainty for the
renew ables industry in 2024. LCoE levels remained
high due to elevated materials costs, interest rates,
and squeezed supply chains. The current high-cost
environment, especially in offshore wind, is pressuring
developers.
Offshore wind
Despite current headwinds, especially in the US,
offshore wind is a crucial lever of the global energy
transition and a necessary enabler of the ambitious
build-out targets set globally. In the long-term, it
remains an industry with a strong fundamental value
proposition. Yet, it has become clear that several
industry challenges must be addressed to realise the
full potential of offshore wind. This includes complex
and timely permitting processes, auction designs
which are based solely on price, or which involve
concession payments, and other structural barriers.
We believe that governments and industry can work
together to weather the current challenges and
facilitate future offshore wind deployment, and we
are pleased to see the continued commitment from
both the EU and the member states to offshore wind.
Along with the rest of the industry, we have felt
the impact of these challenges. We are therefore
adapting our business to new market conditions.
We have spent the past year working – both internally
and with governments and industry – to strengthen
conditions for offshore wind and support future
offshore wind deployment.
Installed capacity (excl. China) *
GW
EU AMER APAC Rest of world
Political initiatives in 2024
Government policies to accelerate deployment
and uptake of renewables
Offshore wind
25
13
89
~x3
2024 2030
~42
~128
5
37
Onshore renewables
~4,025
~x2.3
~1,780
2024 2030
~530
~870
~1, 30 0
~1,330
~18 0
~400
~600
~600
EU Clean Industrial Deal
Foster competitive and resilient industries, clean
technology innovations, and high-quality jobs.
UK Beyond 2030 strategy
Modernising the electrical grid to ensure grid
integration and distribution of renewables,
particularly offshore wind.
DK / SE / DE / UK market designs
Addressing energy market designs and instruments
as levers of energy system flexibility and resilience.
US federal and state-level investment policy
Implementing federal tax credit policies to foster
long term investment.
Shaping state procurement policy to support a
strong future for development opportunity.
TW auction design
Easing local content requirements in offshore
wind to enable broader participation in future
auctions and accelerate renewables deployment
in Taiwan.
* Source: BNEF (2024)
20 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
Our strategy
Ørsted’s vision is to create a world that runs entirely
on green energy. We are contributing towards this
vision in our daily work by developing, constructing,
and operating renewable assets at scale and by
leading the way for an energy build-out that drives
positive change beyond green electrons.
Our employees are the cornerstone to delivering on
our ambitions. Our second pillar, to be the leading
talent platform in renewables, means employees
globally experience Ørsted as a great place to work.
We help our employees to understand how their daily
work impacts our vision. We support them in growing
their talent by learning from expert colleagues and
through global collaboration. In doing so, we create a
supportive, empowered, and result-focused company
culture.
The final pillar to delivering on our renewable energy
ambitions is that we construct and operate in an envi-
ronmentally and socially sustainable way. Our renew-
able energy projects require resources and space at
land and at sea, all of which are constrained. They
also require public support. As such, a sustaina-
ble approach that benefits nature and people is a
A world that
runs entirely on
green energy
Our vision
Our three strategic pillars
→ One of the world’s leading
developers, constructors,
and generators of renewable
assets
→ The leading talent platform
in renewable energy
→ Globally recognised
sustainability leader
Our strategic aspiration
The world’s
leading green
energy major
prerequisite for building renewable energy at the
pace and scale needed. It is also an extraordinary
opportunity to deliver additional positive value
to society.
Our three strategic sustainability priorities are
tailored to drive this value and support our efforts
to be a globally recognised sustainability leader.
Decarbonisation: to limit our use of emission- intensive
resources and support long-term business resilience
and competitiveness. Biodiversity: to help protect
nature and ensure access to land and sea. And
community impact: to ensure people in the regions
where we operate in benefit from and support the
build-out and our license to operate. With these,
we lead the way for a renewable energy build-out
that drives a lasting, positive change for our society,
industry, and company.
21 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
Business priorities
During the year, we have advanced five transforma-
tional and company-wide business priorities that
will ensure we have the strongest possible platform
to deliver consistent value in the years to come.
These priorities will improve our competitiveness.
We have advanced our revised operating model
across the three regions to future-proof our offshore
business in a less predictable and more competitive
market. This will create clearer accountability and
stronger risk management in the development and
construction of our offshore wind projects. We are
also strengthening our supply chain management
capabilities to improve our competitiveness through
our supply chain partnerships and activities.
We are progressing towards a simpler, more efficient,
more competitive organisation, which will allow
us to realise savings of more than DKK 1 billion by
2026. We are improving our generation and revenue
capabilities to reduce our downside risk, improve
decision-making, and ensure we maximise the value
of our green electrons.
To ensure effective tracking of progress on our business
priorities, we are enhancing our focus on performance
management and simplification. This will create
clearer alignment between strategic targets, business
priorities, and KPIs.
With the reduced growth ambition towards 2030,
we will take measures, beyond the 2024 initiatives,
to continuously adapt our cost base and organisation
to fit our value and build-out ambition.
EBITDA targets
Group EBITDA excl. new partner-
ships and cancellation fees
DKKbn
2024
24.8
2026
29-33
Installed capacity ambition
GW
Offshore Onshore Bioenergy
Our three strategic sustainability
priorities
Decarbonisation
Biodiversity
Community impact
Our business platform
Technology and markets
Offshore wind, fixed-bottom
Selective in support of offshore wind: renewable hydrogen.
Invest-to-grow core business area in → Europe, Americas, APAC
Onshore wind, solar, and storage
Invest-to-grow strategic area in → Europe, Americas
Bioenergy and carbon capture and storage (CCS)
Steady business with opportunistic plays in → Europe
27. 3
22.0
18.2
Installed
and under
construction
2026
ambition
2024
installed
capacity
22 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
Executing our strategy
In 2024, we have executed on the business plan pre-
sented in February last year. We have also continued
the integration of sustainability into our business and
value chain to help address challenges to the build-out
and further de-risk our project delivery.
Expanding our portfolio
In 2024, we added a total of 1.0 GW to our installed
offshore capacity, which, by the end of 2024, totalled
9.9 GW. With a capacity of 900 MW, the commissioning
of the Greater Changhua 1 and 2a wind farms in Taiwan
was a significant part of this increase. The two wind
farms are the largest of their kind in Taiwan and in the
Asia-Pacific region. Additionally, we commissioned
the wind farm South Fork in the US, adding 132 MW of
installed offshore capacity to our portfolio. Gode Wind
3 in Germany is fully operational and will expectedly be
commissioned in Q1 2025, adding a further 253 MW to
our installed capacity.
In our Onshore business, we added a total of 1.4 GW
in 2024. In Texas in the US, we commissioned Sparta
Solar, Old 300 (remaining part), and Mockingbird Solar
Center in 2024, with Mockingbird being the largest
solar farm in our portfolio to date. Furthermore,
Eleven Mile Solar Center, our combined solar and
battery storage project of 300 MW solar PV and
an additional 300 MW/1,200 MWh of storage, was
commissioned in 2024. Lastly, we commissioned an
onshore solar farm in Europe.
By the end of 2024, we had 7.6 GW of capacity
under construction. During the year, we took FID on
eight projects. In our offshore business, Sunrise Wind
reached FID. In our onshore business, the solar farms
Ballinrea, Rottenegg, and Hatzenhof were FID’ed, as
were the wind farms Farranrory and Badger Wind.
Lastly, we took FID on two storage projects adjacent
to our wind farm Hornsea 3 and our solar farm Old 300.
In January 2025, we took FID on Baltica 2, thereby
adding an additional 1.5 GW to our construction
portfolio.
We continue to manage the construction risks facing
our US offshore portfolio. During the year, we have
experienced challenges at Revolution Wind with the
construction of the onshore substation and challenges
related to the piling of one of the offshore substation
monopiles. At Sunrise Wind, we have experienced
challenges related to the monopile fabrication and
installation. For both projects, this has led to higher
costs. In addition, we have increased our cost estimate
for Sunrise Wind for the first-ever HVDC system and
export cables and for installation of turbines, based
on learnings from Revolution Wind. Both projects
are progressing according to the updated schedules.
In Germany, construction of Borkum Riffgrund 3 is pro-
gressing according to schedule, but the installation of
the project’s power grid connection has been delayed
by the German TSO, and the expected COD is moved
to Q1 2026. We are being compensated for this delay.
In addition to our assets under construction, we had
5.2 GW of capacity awarded or contracted, resulting
in a total capacity of 31.0 GW across our business.
We have decided to cease the construction of our liquid
e-fuels project FlagshipONE. The decision was based
on a slower-than-expected industrialisation of the tech-
nology and commercial development of the offtake
market as well as a deteriorating business case.
Securing long-term capacity with strategic suppliers
is key for us to build collaboration and collaboratively
manage risks and construction of our offshore wind
projects. Therefore, we have entered a partnership with
Cadeler for a new-built wind farm installation vessel to
secure capacity from Q1 2027 until the end of 2030.
An overview of our build-out plan, including project
progress, can be seen on page 25.
Divestment programme on track
We have made several divestments since the farm-
down programme was announced as part of the
business plan update in February last year.
In the UK, we closed an agreement with Brookfield to
divest a share of four operational offshore wind farms
(Hornsea 1, Hornsea 2, Walney Extension, and Burbo
Extension) with a combined total capacity of 3.5 GW.
We will retain a 37.55 % ownership interest in the
four assets and continue to exercise a similar level of
control and governance as before the divestment.
In Taiwan, we closed an agreement to divest 50 % of
our offshore wind farm Greater Changhua 4 to Cathay
Life Insurance, the leading insurance company in
Taiwan. As part of the agreement, we will construct
the wind farm under a full-scope EPC contract,
and we will also provide long-term operations and
maintenance (O&M) services.
In the US, we made a partial divestment of four
operational assets (957 MW) to Stonepeak. We have
maintained full operational control and fully consol-
idate the portfolio in our financial accounts. Addi-
tionally in the US, we made a partial divestment of
three onshore projects to Energy Capital Partners
(ECP). The farm-downs include two solar farms in
Texas, Mockingbird Solar (468 MW) and Sparta Solar
(250 MW), and Eleven Mile Solar Center, a 300 MW
solar and 300 MW/1,200 MWh battery storage project
in Arizona. With operations commencing in 2024, all
three projects have tax equity partnerships and power
purchase agreements in place. Lastly, we divested our
onshore platform in France to ENGIE.
Exploring new business opportunities
We continue to explore value-creating opportunities.
We are pleased that the Australian Government has
granted us feasibility licences for our first offshore wind
projects in Australia. With these licenses, we aim to
develop large-scale offshore wind farms in Australia,
expected to become operational in the early 2030s.
23 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
As part of our carbon capture and storage project
‘Ørsted Kalundborg Hub’, we have entered a new major
agreement on carbon removal with Microsoft to sell a
further one million tonnes of carbon removal over a ten-
year period from Avedøre Power Station. This agree-
ment builds on an existing commitment by Microsoft
to buy 2.67 million tonnes. Additionally, we signed an
agreement with Equinor to sell credits for the removal of
330,000 tonnes of CO
2
over a ten-year period.
Innovating the industry
Innovation is core to our business, and we believe we can
continue to harness existing and new technologies to
make renewable energy more affordable, reliable, effi-
cient, and sustainable.
Building on existing marine life protections, we have
developed a new lower-noise installation method, which
strengthens existing protections to marine life. We suc-
cessfully tested the innovative installation method on
three monopile foundations at our German offshore wind
farm Gode Wind 3. Beyond the noise reduction, this new
technology is a step change in offshore wind monopile
installation that, once adopted at scale, can provide
more efficient and cost-effective installation of offshore
wind foundations.
Building on previous trials and expertise using drones at
offshore wind farms, we have launched the world’s first
heavy-lift cargo drone operations at the Borssele 1 & 2
Offshore Wind Farm. The drones, which can transport
cargo of up to 100 kg, will improve operational
efficiency and safety in the offshore wind industry.
We continue to lead in leveraging innovative tech-
nolo gies to enhance biodiversity monitoring across our
projects. In 2024, we have made significant advance-
ments by using artificial intelligence (AI) to make bio-
diversity assessments more efficient and precise. This
includes integrating machine learning models and
improving the use of underwater video footage with
computer vision techniques. These efforts align with our
ambition to deliver a net-positive biodiversity impact on
all new renewable energy projects commissioned from
2030, at the latest.
Delivering on sustainability
Through our three strategic sustainability priorities –
decarbonisation, biodiversity, and community impact –
we continued to deliver actions that drive value for our
business as well as nature and people. In 2024, we had a
key focus on efforts that support project development
and business resilience. An overview of the selected
progress can be seen on page 26.
We continued to push for the further integration of
sustainability into our business – to support that
sustainability impacts, risks, and opportunities are
consistently considered in decisions, ranging from what
we source to how we develop, construct, operate, and
decommission our projects. As part of this, we began to
further detail and develop roadmaps – to break down our
ambitions into structured short- to medium-term actions
and milestones. Going forward, this will support that all
relevant business functions have a strong understanding
of their roles in and responsibilities for executing on
sustainability. We will continue this work in 2025.
To strengthen a successful integration of sustainability
into the business, we updated our sustainability
governance with a clear accountability and leadership
focus at the Group Executive Team level.
Sustainability information
in the annual report
Sustainability information can be found in both the ‘Manage-
ment’s review’ and the ‘Sustainability statements’. The latter
is structured according to the four mandated sections in the
European Sustainability Reporting Standards (ESRS): ‘General’,
‘Environment’, ‘Social’, and ‘Governance’, where most of our
ESRS disclosures can be found. However, we have chosen to
incorporate some disclosures from the cross-cutting standard
ESRS 2 and ESRS G1 by reference in the management’s review.
Primarily, this includes information about corporate govern-
ance, strategy, and enterprise risk management.
In 2024, we conducted a double materiality assessment
(DMA) to identify and assess our material sustainability-
related impacts, risks, and opportunities (IROs). We work
continuously to integrate sustainability into our strategy and
business model and to effectively manage these IROs.
Please see the ‘Sustainability statements’ to read more,
including the full details of our sustainability-related IROs,
actions, and performance.
The specific ESRS disclosures incorporated by reference in
the ‘Management’s review’ are marked with a tag, starting
with ‘// ESRS’ and ending with ‘//’.
Sustainability
statements
General
Environment
Social
Governance
Management’s
review
Strategy and business
Corporate governance
24 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
18.2 GW 7.6 GW 5.2 GW 31.0 GW
1,498 MW
Baltica 2
Commercial operation date:
H2 2027
FID taken in January 2025. Large
share of CAPEX contracted.
1,255 MW
1
Baltica 3
Commercial operation date:
n.a.
Working collaboratively on the
reconfiguration and revised
schedule of Baltica 3, together
with our partner PGE.
2,400 MW
Hornsea 4
Commercial operation date:
Before end of 2030
Project in development phase.
9.9 GW
Offshore wind
6.2 GW
Onshore renewables
2.1 GW
CHP plants
2024 → 20242024
920 MW
Greater Changhua 2b and 4
Commercial operation date:
H2 2025
Installation of the offshore substa-
tion jacket and topside completed.
Continued progress on production of
array cables and foundations. Vessel
capacity secured and first power
expected during summer 2025.
913 MW
Borkum Riffgrund 3
Commercial operation date:
Q1 2026
All foundations and turbines
installed as planned.
253 MW
Gode Wind 3
Commercial operation date:
Q1 2025
The offshore wind farm is producing
at full capacity and expected to
reach COD in Q1 2025.
704 MW
Revolution Wind
Commercial operation date:
2026
Onshore substation construction
and piling of monopile for offshore
substation progressing according
to updated schedule. 80 % of the
monopiles have been installed,and
turbine installation is progressing.
924 MW
Sunrise Wind
Commercial operation date:
H2 2027
Onshore construction and prepara-
tion works are progressing. Offshore
installation is commencing in Q1
2025.
2,852 / 300 MW
Hornsea 3 / storage (BESS)
Commercial operation date:
H2 2027
Onshore works on converter sta-
tions and cable routes progressing
according to schedule. First offshore
activities to commence in 2025.
BESS construction to commence in
Q2 2025.
259 MW
Badger Wind
Commercial operation date:
2025
FID taken in October. Construction
has commenced.
250 MW
Old 300 storage (BESS)
Commercial operation date:
2026
FID taken in Q4. Construction is
expected to commence in Q1 2025.
262 MW
Onshore Europe
Commercial operation date:
2025 – 2026
Construction of our onshore
renewable assets is on track.
20272024 →
Installed capacity Decided (FID) Awarded Installed, decided (FID), and awarded
Build-out
Gross renewable capacity
27. 3 GW
Capacity installed
and under construction
With the FID of Baltica 2 (1,498 MW)
in January 2025, we have line of
sight on a significant expansion of
capacity through projects currently
under construction.
~35 GW
Substantiated pipeline
Projects that have reached a level of
maturity, such as secured exclusivity
through a lease or site, secured
consent or environmental impact
assessment (EIA), or established
partner ships where no final invest-
ment decision has been taken yet.
↓
For progress on our strategic
sustainability priorities, see next page.
1
Capacity includes both
Baltica 3 (1,045 MW) and the
awarded lease capacity for
Baltica 2+ (210 MW). Baltica 2+
has not received a CfD on the
terms stated for Baltica 3.
25 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
Sustainable build-out
Selected 2024 actions across strategic sustainability priorities
Decarbonisation
In only 15 years, we have entirely transformed our business model
from being a fossil utility to a global renewable energy company.
We are taking action to tackle all emissions across our business
and value chain; in 2024 moving a step closer to doing so while
creating a more resilient business.
Biodiversity
The space required for the renewable energy transition is signif-
icant, and, with a nature in crisis, it is vital that we make sure our
energy projects benefit nature. We continued taking action to
deliver on our ambition that all new renewable energy projects
commissioned from 2030, at the latest, will have a net-positive
biodiversity impact.
Community impact
A large-scale build-out of renewable energy can only be achieved
if people are at the center of how it is delivered.In 2024, we con-
tinued to integrate local jobs, training, and community engage-
ment into our project delivery.
Shut-down of our last coal-fired combined heat and power plant
This was the last big milestone in transforming our energy gen-
eration to renewable energy. We have now taken all necessary
actions to meet our industry-leading science-based target to
reduce our scope 1-2 GHG emissions intensity by 98 % compared
to 2006 and achieved a 99 % green share of energy generation
by 2025.
Pioneering lower-emissions steel
We continued to push for the decarbonisation of materials essen-
tial to renewable energy, signing a long-term offtake agreement
for lower-emissions heavy plate steel with our supplier Dillinger.
The agreement secures Ørsted first offer and ensures a more
diversified supply and secure capacity of steel, while supporting
Dillinger’s efforts to decarbonise steel production.
Reuse and recycling of blades and towers
Reuse and recycling of turbine components and materials is key
to lower emissions and costs and to diversifying supply. In the
decommissioning of our wind farm Owenreagh 1 in Northern
Ireland, we sent turbine towers for reuse while the blades were
sent to be recycled, reflecting our commitment to not send
blades to landfill.
Launching our ‘Biodiversity measurement framework’
Transparently measuring and reporting on our biodiversity impact
is key to demonstrating the potential of renewable energy in
delivering benefits to nature. We are the first in the offshore
industry to deliver a science-based framework, and we hope it
will help accelerate collective industry consensus and action by
establishing a clear approach.
Business for Nature (BfN) approval of our nature strategy
Recognising our holistic and ambitious approach to protecting
nature, BfN approved our broader nature strategy that was
launched in 2024. That makes Ørsted one out of the first 25
companies globally to get this approval as part of BfN’s ‘Now for
Nature’ campaign.
Piloting net-positive solutions
We have a global portfolio of innovative biodiversity projects,
demonstrating the wide range of ideas we are testing to enhance
nature. In Taiwan, for example, we are cultivating corals to grow
on offshore wind turbines and have now finalised preparations to
deploy the first ones in 2025.
Training a local offshore wind workforce
Local people and businesses have a vital role to play in the
growth of the renewable energy industry. In the US, we developed
a workforce development programme that has provided 335
union workers with the necessary credentials for working offshore.
They can now safely and smoothly transition to offshore wind
farm installation scopes.
Delivering additional value with renewable energy
In connection with the construction of Hornsea 3 in the UK, we
have launched a community benefit fund that will distribute up
to GBP 7 million over ten years to invest in the region’s future.
In 2024, 21 social and environmental groups were selected by
an advisory panel formed of local representatives as the first
to receive grants.
Assessing the impact of our community engagement
We consistently work to learn from and optimise the impact of our
community engagements. We completed three different pilots to
measure the effectiveness of the local social value we deliver. The
results will help us target investments to the areas that drive the
greatest local benefits.
For more information, see ‘Climate change’ (ESRS E1), page 81,
and ‘Resource use and circular economy’ (ESRS E5), page 116.
For more information, see ‘Biodiversity and ecosystems’ (ESRS E4), page 108. For more information, see ‘Affected communities’ (ESRS S3), page 145.
26 Management’s review
|
Strategy and businessØRSTED ANNUAL REPORT 2024
High
High
Low
Enterprise risk management
Risks are a natural and integral part of our business
activities, and our risk profile changes continuously.
We aim to mitigate our risks and reduce them to an
acceptable level through risk management.
How we manage risk
The Board of Directors oversees our risk management
in general and have delegated the oversight of our
enterprise risk management risks to the Board’s Audit
& Risk Committee.
Our ‘Enterprise risk framework’ sets out the general
principles, the roles and responsibilities, and the main
processes by which all risks must be identified, assessed,
managed, monitored, and communicated throughout
the Group. This framework is being strengthened to
support consistent processes for managing risks at
Ørsted and to enable informed decisions on risk-taking
to be made. Targeted initiatives are being run in the
context of the ‘Enterprise risk framework’, including an
enterprise-wide programme to implement the new
regulatory requirements under the European Network
and Information Security Directive (NIS2).
We have continued to strengthen risk management
in relation to the development and construction of
assets during 2024, where we have seen substantial
adverse impacts on our business risks in recent years.
This includes the roll-out of the new operating model
for offshore asset projects, including a revised stage
gate model with independent project reviews, and
a dedicated offshore project risk management
framework. The focus on contingency planning
(including more proactive contracting for back-up
supply chain capacity) and monitoring suppliers
(including from site visits to tracking manufacturing
progress) has continued during the year. Furthermore,
the Board of Directors has established an Asset
Project Committee, which has regular updates on
project execution and monitoring of risks as its key
focus. Risk reviews are being carried out for selected
projects and reported to the Group Executive Team
and the Board of Directors.
We will also continue our work to manage future
breakaway profiles for asset projects by scrutinising
financial commitments before taking final investment
decision (FID) to avoid high capital commitments rela-
tive to project maturity and to ensure greater flexibility
on project timelines and commissioning dates as well
as phasing of CAPEX.
How we assess risk
Risk assessment is carried out on an ongoing basis in
all business segments and regions as part of our daily
business operations.
In addition, we have performed an annual risk assess-
ment with the overall objective of identifying and
reporting on our most significant risks. This is carried
out through an assessment of the main risks across
all business segments, regions, and selected staff
functions. An assessment is made of the potential
financial impact of the main risks, which are then
Top 7 business risks
Effect on our value and credit metric
1 (#1 in 2023)
Supply chain and cost inflation
2 (#3 in 2023)
Farm-downs and partnerships
3 (New in 2024)
Project execution
4 (#5 in 2023)
Cybersecurity
5 (#2 in 2023)
Inflation, interest rate, and currency risks
6 (#4 in 2023)
Power prices and energy markets
7 (New in 2024)
US regulatory risks
→
Quantification of risks is based on a scenario where the risk
occurs with 10 % probability (P90). Our Internal Audit function
has examined the process for identifying and measuring the
accompanying portfolio risks.
Impact on FFO/adjusted interest-bearing net debt
Impact on value
consolidated and evaluated at Group level. Overall
ownership for all mitigating actions for individual risks
identified as part of the annual risk assessment rests
with a member of the Group Executive Team.
The top six enterprise risks identified are shown to the
right where they are illustrated based on their poten-
tial impact (post-risk mitigation) on our value and
credit metrics over the next years. You can read more
about these risks and how we mitigate them on the
following pages.
In addition to these top risks, we are exposed to risks
which have a very small probability of occurring,
but which could potentially impact our finances or
reputation substantially.
Development in enterprise risks in 2024
We have introduced ‘Project execution’ as a new sixth
risk and ‘US regulatory risks’ as a new seventh risk
in 2024, and we have seen changes in the relative
importance of our top risks from last year.
‘Supply chain and cost inflation’ is still assessed to be
our largest risk. Supply chains are suffering delays,
and the financial position of our suppliers continues to
be stretched. While considering alternative suppliers,
27 Management’s review
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Strategy and businessØRSTED ANNUAL REPORT 2024
we are is facing higher prices as the current strong
demand for the development of renewable projects
still exceeds the supply available. Throughout the
year, we have seen bottlenecks in several parts of our
supply chain, leading to increased costs and risk of
delayed projects.
‘Farm-downs and partnerships’ is placed as our second-
largest risk. Higher interest rates and increased global
geopolitical uncertainty continue to negatively impact
investor demand for renewable assets. There is an
increasing number of renewable assets being put
up for sale by companies who are looking to reduce
their capital exposure or rebalance their investments
to assets where they can access higher returns.
This greater competition for capital has led investors
to be more selective in their choices.
We assess ‘Project execution’ to be our third-largest
risk. Wind projects are large and complex in nature
and may encounter obstacles, from both internal and
external factors, causing delays and cost overruns.
All projects have completion deadlines, and failure to
meet these may result in partial or full loss of subsidies,
grid connections, and/or project rights. Ongoing
initiatives to strengthen project risk management
highlight the importance of managing this core risk
to Ørsted’s business and enabling future growth.
‘Cybersecurity’ has moved up to be our fourth-largest
risk. The geopolitical development over the past
years has shown that cyberattacks are an increased
threat to our operations. It is of the utmost importance
that we protect our infrastructure and systems from
malicious attacks. Furthermore, we can see that the
demand for cybersecurity professionals continue to
rise and currently outpace availability.
‘Inflation, interest rate, and currency risks’ is now
assessed to be our fifth-largest risk, and ‘Power prices
and energy markets’ is assessed as our sixth risk in 2024.
Both risks have moved down in ranking in 2024, mainly
because other risks have increased in magnitude. Lastly,
‘US regulatory risks’ has been added as our seventh
largest risk due to potential changes compared to
the current treasury guidance on the qualification
for bonus ITCs.
The CSRD mandates reporting on environmental,
social, and governance (ESG) practices and adher-
ence to a double materiality assessment (DMA).
These assessments are used to identify and disclose
material sustainability impacts and financial risks
and opportunities, inform areas for development,
and track progress annually, ensuring sustainability-
related financial risks are considered together with
the broader risk portfolio.
We have identified seven of the ten ESRS topical
standards under the CSRD to be material. These are
‘Climate change’ (ESRS E1), ‘Biodiversity and ecosys-
tems’ (ESRS E4), ‘Resource use and circular economy’
(ESRS E5), ‘Own workforce’ (ESRS S1), ‘Workers in the
value chain’ (ESRS S2), ‘Affected communities’ (ESRS
S3), and ‘Business conduct’ (G1). A detailed description
of the DMA methodology and results can be found in
the ‘Sustainability statements’ on pages 67-74.
↑ Offshore wind technicians,
Anholt Offshore Wind Farm, Denmark.
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1. Supply chain and cost inflation
Description
As a global renewable energy developer, we are exposed
to risks related to cost inflation due to highly volatile
prices, driven by high global demand and opportunistic
supplier pricing.
There is a continued risk of supply chain bottlenecks,
due to the limited number of suppliers with required
capabilities. We have onboarded new suppliers;
however, this introduces a risk that some do not meet
the performance expectations or standards initially
contracted. Increased costs and supply chain shortages
are worsened by further barriers from geopolitical and
regulatory risks.
We also face credit and counterparty risks when procuring
equipment and services, if one of our suppliers should
default or deliver unsatisfactory products.
Potential impact
The inability of our suppliers to deliver on agreed
schedules, lack of available production capacity or
transportation and installations vessels, and sudden
inflation in key materials could result in project delays
and budget overruns as well as cancellation of projects.
Mitigating actions
We enter into volume agreements and source wind
turbines from key suppliers in a timely manner to reduce
uncertainty, and we have entered into long-term vessel
supply contracts. As part of our strengthened operating
model, we pro-actively secure additional capacity for
restricted supply chain sources to have more flexibility
and alternatives in our project plans and installation
schedules, and we monitor suppliers, e.g. by tracking
manufacturing progress.
To mitigate cost inflation risks, we carry out hedging for
steel and other commodities on an asset project basis.
Our process for vetting new suppliers is thorough, and we
have strict credit risk policies in place to manage credit
and counterparty risks.
2. Farm-downs and partnerships
Description
Our partnership strategy continues to be a cornerstone
in managing our financial planning and reaching our
strategic ambition, with a sizeable number of farm-
downs, full divestments, and joint venture partnerships
expected in the coming years. This entails risks related
to delays, lower proceeds, the lack of potential buyers,
regulatory and contractual restrictions, and the
macroeconomic environment.
There is an increased competition for capital, which is
leading investors to be more selective in their choices,
and in addition, buyers are increasingly seeking for
Ørsted to insulate them from project risks, for example
during the construction phase, which can increase the
impact of any negative developments in the individual
projects post-divestment on us.
Potential impact
Failure to complete future farm-downs of projects or
delays could lead to an adverse impact on our credit
rating and value. Furthermore, increasing interest
rates could have a negative impact on the investment
capacity and on the value extracted from partnerships.
Mitigating actions
We have years of experience in handling all aspects of
divestment and partnership processes with a strong
track record of creating value through our partnership
model.
Our highly experienced team is capable of not only
managing the equity transaction; it also takes the lead
on structuring the financing package together with or
on behalf of our partners.
We continuously engage with current and future
investors and partners to help secure demand for our
portfolio of assets.
3. Project execution
Description
Offshore wind projects are large and complex in nature
and may encounter obstacles, both from internal and
external factors, leading to installation challenges
impacting project execution, delays to construction
schedules, and cost overruns. The risk has increased in
the US, due to the uncertainty around the newly issued
executive orders.
Potential impact
All projects have completion deadlines, and failure to
meet these may result in partial or full loss of subsidies,
grid connections, and/or project rights, leading to
adverse impacts on financial metrics. Delays and
technical challenges can lead to cost-overruns during
the project execution phase. In the worst case, this risk
may lead to impairments or projects being cancelled
and subsequently high breakaway costs incurred.
Mitigating actions
Throughout the year, we have strengthened the risk
management activities during the construction phase
for offshore asset projects. We have implemented a
new operating model with a dedicated offshore project
risk management framework, including independent
project reviews, under a revised stage gate model.
In addition, we are planning a roll-out of a stronger
portfolio governance framework, targeting an early
and consistent identification of risks and management
of trade-offs. We carry out risk reviews for selected
projects and report to the Group Executive Team and
the Board of Directors, and we regularly report the status
on project execution progress and project risks to the
newly established Asset Project Committee.
4. Cybersecurity
Description
We face significant cybersecurity risks from individuals,
groups, and nations, aiming to harm or profit from the
company or the society it serves. Cyberthreats can range
from compromising a single asset to disrupting entire
operations and societies. Europe’s diversified energy
sources make us a potential target for cyberattacks,
as our critical knowledge in innovation and technology
attract threats or actors seeking confidential informa-
tion and access to critical national infrastructure.
Potential impact
Minor digital risk events, such as viruses and attempted
break-ins, are everyday risks without significant impact.
However, a ransomware attack or direct sabotage of
our digital systems and processes could severely impact
trading activities, financial settlements, maintenance,
construction, and contract negotiations. Dependence
on the enterprise environment means energy production
would be affected, with the impact increasing the longer
the disruption continues.
Mitigating actions
We face different types of cyber risks. Some are related
to our assets and some to our systems. Thus, we mitigate
cyber risks with several different initiatives, which are
continuously assessed and prioritised based on our
strategic cybersecurity risk assessment with the aim of
lowering our risk exposure.
At our operating assets, we have deployed production
cyberdefences to enhance protection against onsite and
offsite attacks. In addition, we have a top-level information
and cybersecurity management system and framework,
supported by our global governance model. We have
regular trainings and roll-out of new security measures
as they are approved. We also carry out selected crisis
response and preparedness testing and training.
This way, our cyber capability is continuously improved
to identify, protect, detect, respond, and recover across
the enterprise and production sites.
29 Management’s review
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5. Inflation, interest rate, and currency risks
Description
Our inflation, interest rate, and currency risks are related
to volatility in the macroeconomic environment where
we operate.
We are exposed to inflation, both directly through the
real return but also indirectly through cost inflation
and higher interest rates. Approx. 50 % of our revenue in
2025-2030 is inflation-indexed and expected to follow
the development in consumer prices, thereby protecting
the real value of our assets and equity. However, for
assets and in markets where we do not have inflation-
indexed PPAs or subsidies, we are exposed to inflation
risks, where an increase in inflation will adversely impact
the expected real value of our revenue.
Potential impact
Fluctuations in interest rates, inflation, and foreign
exchange rates may adversely impact our earnings and
the value of our assets.
Mitigation initiatives
We prefer investing in assets and entering into contracts
with inflation-indexed revenue streams to mitigate cost
inflation, and we match our debt with our assets per
currency and the same payment structures (modified
duration). Hence, our European fixed nominal subsidies
are being offset by EUR-denominated fixed-rate debt.
In contrast, we have entered into inflation swaps for
part of our inflation-indexed revenue in the UK to match
our nominal GBP debt. In new markets, we may execute
interest rate swaps to lock in interest rates before financing
is secured.
Our currency exposure is managed by hedging more in
the near years and less in the later years over a five-year
horizon.
Read more about inflation and interest rate risks in note
6.3 ‘Inflation and interest rate risks’ and about currency
risks in note 6.4 ‘Currency risks’.
6. Power prices and energy markets
Description
Power price risks primarily originate from the sale of
our renewable power generation in the UK, the US,
and north-western Europe. Our CHP plants constitute
a spread risk due to the difference between the prices
of the power generated and the fuel consumed (i.e.
biomass, gas, and carbon dioxide allowances).
We are also exposed to second-order risks, arising from
power price hedges not fully matching our actual revenue
exposure (i.e. position, intermittency, and regulatory risks).
Furthermore, we are exposed to liquidity risks where
we are required to post collateral at exchanges if our
positions are ‘out of the money’ (which was the case
when the energy prices soared throughout 2022).
Potential impact
Energy prices are volatile and can impact both earnings
and liquidity.
Mitigating actions
Approx. 85 % of our expected revenue from generation
of power from renewable offshore and onshore assets in
2025-2030 have no exposure to power price risk as the
price is either regulated through subsidies or contracted
through CPPAs. This significantly reduces our exposure
towards volatility in power prices.
We manage the remaining 15 % of our exposure through a
hedge framework, under which we hedge up to 70 % of the
power generation volume in the first two years. The 70 %
limit is set based on an assessment of the uncertainties
related to power generation volumes. The hedge level is
based on a holistic assessment of the risk profile of the
combined offshore and onshore assets as well as the
balance between market, credit, and liquidity risks.
Read more about our risk framework and energy price risks
in notes 6.1 ‘Risk framework’ and 6.2 ‘Energy price risks’.
Legal compliance
Description
Risks associated with legal compliance are assessed
based on financial and reputational significance and
probability. Our most significant risks are 1) tax law,
2) financial regulation, and 3) tender law. (1) We operate
in tax regimes with different tax rules and rates, and our
tax affairs span over corporate tax compliance, transfer
pricing, and indirect taxes. (2) We are subject to several
financial regulations, such as REMIT, MAR, EMIR, Dodd
Frank, MiFID, SFTR, and AML1. The financial regulations
are relevant for a large part of our activities. (3) Many
of our purchases of goods, services, and work in the EU
are subject to EU and local tender rules.
Potential impact
Failure to comply with the above-mentioned rules and
regulations may result in severe legal sanctions, such as
imprisonment, fines, and damage claims, but will also
impact sourcing processes and subsequently increase
the risk of project delays.
Mitigating initiatives
(1) We have implemented a comprehensive tax control
framework and a mandatory compliance framework,
including transfer pricing documentation, in line with
OECD recommendations and local requirements. This
has been prepared on a contemporary basis to mitigate
our tax risks. (2) We have implemented comprehensive
policies, procedures, training, and controls for relevant
parts of our business to ensure compliance with finan-
cial regulations. We also carry out regular training on
relevant regulatory topics. (3) To ensure compliance with
tender laws, our legal team carries out training courses
for procurement teams and e-learning targeted for new
employees and has developed comprehensive guide-
lines on how to apply the standard tender documents.
The legal team also works closely together with the
procurement team on major tenders.
7. US regulatory risks
Description
Ørsted is exposed to potential changes in energy policy,
tax incentives, and regulatory frameworks in the US.
This leads to risks relating to permitting and regulation,
grid infrastructure, carbon standards, and trade policies
as well as the ability to qualify for the additional 10 %
ITC bonus credits on our US offshore wind projects
Revolution Wind and Sunrise Wind. In our business cases,
we have included a 95 % probability of qualifying for
the additional 10 % ITC bonus credits based on our
assessment that the onshore substations are located
on brownfield sites as defined by the current ‘energy
community’ guidance.
Potential impact
If our US offshore projects Revolution Wind and Sunrise
Wind fail to qualify for additional 10 % ITC bonus credits,
it will lead to adverse financial impacts, including further
impairments of approx. DKK 5.1 billion. See more in note
3.2 ‘Impairments’, where we have included sensitivity
analyses of impairment effects if assumptions to ITC
bonus credits change.
Mitigating actions
Actions to mitigate risks are ongoing, such as tracking
and mitigating tariff risks on components. Our highly
experienced market-facing team is continuously working
on a good and constructive dialogue with relevant
stakeholders in the US administration regarding any
potential changes on tax incentives, and we rely on the
solid existing guidance and current frameworks issued.
We also include sensitivities on forward-looking tax
equity assumptions in our business cases.
30 Management’s review
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→
The jack-up vessel Seaway Ventus successfully installed the
first of the 83 offshore wind turbines that will make up Borkum
Riffgrund 3 in Germany in June 2024. When complete, the
offshore wind farm will be Germany’s largest, with an installed
capacity of 913 MW. It is also the first in the world to have been
awarded without any subsidies.
Performance
32 Full-year results
36 Five-year summary
37 Fourth quarter
42 Quarterly summary, 2023-2024
31 Management’s review ØRSTED ANNUAL REPORT 2024
Full-year results
Financial results
Revenue
Power generation from offshore and onshore assets
increased by 9 % and totalled 33.9 TWh in 2024.
The increase was due to ramp-up of generation from
our offshore wind farms Greater Changhua 1 and 2a,
South Fork, and Gode Wind 3, our onshore wind farm
Sunflower, and our solar PV farms Sparta Solar (part
of Helena Energy Center), Eleven Mile Solar Center,
and Mockingbird. Furthermore, we had higher wind
speeds across our portfolio. This was partly offset by
lower availability at Hornsea 1 and 2 due to electrical
infrastructure issues in the export transmission cables,
resulting in periods with curtailment in H1 2024.
Further, bad weather conditions in the US in Q1 2024
affected our onshore assets, and the divestment of
London Array in Q3 2023 impacted the year-on-year
comparison.
Heat generation increased by 5 % in 2024, mainly due
to colder weather in Q1. Thermal power generation
increased by 2 %, mainly due to more attractive spreads.
Our renewable share of generation amounted to
97 %, an increase of 4 percentage points compared
to last year.
Revenue amounted to DKK 71.0 billion. The decrease
of 10 % relative to 2023 was mainly due to lower
power sales, mainly due to lower volumes sold on
third-party contracts with limited impact on EBITDA.
EBITDA
Operating profit (EBITDA) for the year amounted
to DKK 32.0 billion, DKK 13.2 billion higher than in
2023. Adjusted for cancellation fees and new partner-
ships, EBITDA increased by DKK 0.7 billion (3 %) to
DKK 24.8 billion.
The impact on EBITDA from cancellation fees amounted
to an income of DKK 7.3 billion in 2024 and related
to Ocean Wind 1 as well as the decision to cease
construction of FlagshipONE. As regards Ocean Wind 1,
we have finalised the negotiations of several contracts
with a better outcome than provided for in 2023,
leading to a positive EBITDA impact. This was partly
offset by costs related to fulfilling and cancelling
contracts for FlagshipONE. In 2023, the cancellation
fees related to ceasing development of the Ocean
Wind 1 project. Earnings from new partnerships in 2023
primarily related to the divestment of London Array.
EBITDA excluding new partnerships and cancellation fees
DKKbn
Other
Sites
CHP plants 0.0
Gas & Other -0.5
0.2
Sites 3.6
Existing partnerships -1.9
0.8
Other
Other
-1.6
0.2
2024 24.8
2023 24.0
Offshore
Bio & Other
Financial results
DKKm 2024 2023 %
Revenue 71,034 79,255 (10 %)
EBITDA 31,959 18,717 71 %
New partnerships (127) 4,324 n.a.
Cancellation fees 7, 3 35 (9,621) n.a.
EBITDA excl. new partnerships and cancellation fees 24,751 24,014 3 %
Depreciation and amortisation (10,225) (9,795) 4 %
Impairment (loss)/reversal (15,563) (26,775) (42 %)
Operating profit (loss) (EBIT) 6,171 (17,853) n.a.
Gain (loss) on divestment of enterprises (11) 234 n.a.
Financial items, net (3,591) (1,443) 149 %
Profit before tax 2,606 (19,026) n.a.
Tax on profit (loss) for the year (2,590) (1,156) 124 %
Tax rate 99 % (6 %) 105 %p
Profit (loss) for the year 16 (20,182) n.a.
Onshore
32 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Earnings from Offshore sites amounted to DKK 23.8
billion, an increase of DKK 3.6 billion compared to 2023.
The increase was due to higher wind speeds (DKK 0.4
billion), ramp-up of generation at Greater Changhua 1
and 2a, South Fork, and Gode Wind 3, and higher prices
on green certificates and on the inflation- indexed CfD
and ROC wind farms. This was partly offset by the lower
availability mentioned above and the divestment of
London Array in Q3 2023.
In addition, earnings in ‘Sites’ were positively impacted
by DKK 0.9 billion of indirect costs to ‘Other’ due to a
change in allocation method. This had no impact on
total EBITDA for Offshore.
EBITDA from existing partnerships decreased by
DKK 1.9 billion and amounted to a loss of DKK 1.0
billion in 2024, which mainly related to updated
assumptions and increased provision related to
operation and maintenance of offshore transmission
assets in the UK, higher costs for Borkum Riffgrund 3,
which reduced earnings under the construction
agreement, and minor adjustments related to farm-
downs completed in prior years.
EBITDA from our Onshore business excl. new partner-
ships amounted to DKK 4.0 billion, DKK 1.0 billion
higher than in 2023. The increase was due to ramp-up
of generation at Sunflower, Sparta Solar, Mockingbird,
and Eleven Mile Solar Center. This was partly offset by
periods with bad weather conditions in the US in Q1
2024, resulting in lower availability and generation.
EBITDA from our CHP plants amounted to DKK 1.2
billion in 2024, in line with last year.
EBITDA from our gas business totalled DKK 0.2 billion
in 2024, DKK 0.3 billion lower than last year. The
decrease was the result of a positive revaluation of our
gas at storage in 2023, which was not repeated to the
same extent in 2024.
Impairment
Impairment losses had a negative effect in 2024 of
DKK 15.6 billion. The main contributors to the net
impairment were construction delay and increased
costs for Sunrise Wind (DKK 4.3 billion) and Revolution
Wind (DKK 3.8 billion), lower valuation of our seabed
leases (DKK 4.1 billion), an increase in the US long-
dated interest rate (DKK 2.7 billion across our US
portfolio), and our decision to cease construction of
FlagshipONE (DKK 1.5 billion). This was partly offset by
a reversal on our Sunrise Wind project (DKK 1.8 billion)
due to its award of a higher OREC by the State of New
York. Impairments in 2023 amounted to DKK 26.8
billion, of which DKK 20 billion related to Ocean Wind 1.
See note 3.2 ‘Impairments’ for more information.
EBIT
EBIT increased by DKK 24.0 billion to DKK 6.2 billion
in 2024. This was mainly due to the higher EBITDA, of
which cancellation fees accounted for DKK 17.0 billion
(positive impact in 2024 of DKK 7.3 billion and negative
impact in 2023 of DKK 9.6 billion), partly countered
by the DKK 11.2 billion higher impairments in 2023.
Adjusted for cancellation fees and impairments, EBIT
amounted to DKK 14.4 billion, down DKK 4.1 billion
compared to 2023 due to lower earnings from new
partnerships.
Financial income and expenses
Net financial income and expenses amounted to
DKK -3.6 billion compared to DKK -1.4 billion in 2023.
The higher net expenses were mainly due to gains
on interest rate swaps in 2023 not being eligible for
hedge accounting and from negative exchange rate
adjustments.
Tax and tax rate
Tax on profit for the year amounted to DKK 2.6 billion,
DKK 1.4 billion higher than last year. The tax rate in
2024 was 99 % and was negatively affected by the
recognition of deferred tax liabilities related to tax
equity contributions for US projects and net unrecog-
nised deferred tax assets, including effects related
to impairment losses and cancellation fees. In 2023,
the tax rate of -6 % was affected by non-taxable
gains on London Array and Gode Wind 3, unrecog-
nised deferred tax assets related to impairment losses
and cancellation fees, and a reversal of a recognised
deferred tax liability in the US related to the tax equity
partnership for Ocean Wind 1. See note 4.2 ‘Tax on
profit (loss) for the year’.
Profit for the year
Profit for the year totalled DKK 0.0 billion, DKK 20.2
billion higher than in 2023. The increase was mainly
due to higher EBITDA and lower impairments. Adjusted
for cancellation fees and impairments (after tax), profit
for the year amounted to DKK 6.4 billion, a decrease
of DKK 8.5 billion compared to 2023, driven by lower
earnings from new partnerships, higher net finance
costs, and higher tax, which was only partly offset by
higher underlying EBITDA.
EBITDA
Offshore 84 %
Onshore
13 %
Bioenergy
& Other
3 %
DKK 32.0 bn
33 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Cash flows and net debt
Cash flows from operating activities
Cash flows from operating activities totalled DKK 18.4
billion in 2024 compared to DKK 28.5 billion in 2023
with negative year-over-year contributions from can-
cellation fee payments, construction contracts, paid
taxes, and lower receipt of previous margin payments.
This was partly offset by higher tax equity contributions
and part of the proceeds from the partial divestment of
four UK wind farms being booked as a prepayment.
During 2024, we had a net cash outflow of DKK 6.3
billion from payments of cancellation fees regarding
Ocean Wind 1. These payments are part of ‘Change
in provisions’, which furthermore reflects the DKK 7.3
billion non-cash change in provision we have reserved
through EBITDA in 2024 as mentioned above. In 2023,
we paid DKK 1.5 billion in cancellation fees and had an
opposite impact on ‘Change in provisions’ related to
the DKK 9.6 billion non-cash cancellation fee provision
recognised in EBITDA. At the end of 2024, the remain-
ing provision related to the Ocean Wind 1 cancella-
tion fee amounted to DKK 1.6 billion.
During 2024, we released DKK 1.8 billion, net, in varia-
tion margin payments on unrealised hedges (‘Change
in variation margin’) and initial margin payments at
clearing houses (part of ‘Change in other working
capital’), whereas we released DKK 9.3 billion in 2023.
The changes are specified as follows:
· The variation margin payments were a cash inflow
of DKK 1.5 billion vs a cash inflow of DKK 7.1 billion
in 2023.
Cash flow and net debt
DKKm 2024 2023 %
Cash flows from operating activities 18,356 28,532 (36 %)
EBITDA 31,959 18,717 71 %
Reversal of gain (loss) on divestment of assets (349) (5,745) (94 %)
Change in derivatives, excl. variation margin (892) (2,812) (68 %)
Change in variation margin 1,540 7,086 (78 %)
Change in provisions (13,057) 8,454 n.a.
Other items (129) 287 n.a.
Interest expense, net (474) 1,384 n.a.
Paid tax (6,327) (2,717) 133 %
Change in work in progress (3,803) (722) 427 %
Change in tax equity liabilities 1,458 374 290 %
Change in other working capital 8,430 4,226 100 %
Gross investments (42,808) (38,509) 11 %
Divestments 15,680 1,542 917 %
Free cash flow (8,772) (8,435) 4 %
Net interest-bearing debt at 1 January 47,379 30,571 55 %
Free cash flow 8,772 8,435 4 %
Dividends and hybrid coupons paid 1,028 6,613 (84 %)
Addition of leasing obligations, net 1,076 978 10 %
Repurchase of hybrid capital, net (1,813) 699 n.a.
Exchange rate adjustments, etc. 1,585 83 1,810 %
Net interest-bearing debt at 31 December 58,027 47,379 22 %
Gain (loss) on sale of assets is part of EBITDA but is presented as part of the ‘divestment’ cash flow.
The EBITDA effect is thus reversed in the specification of cash flows from operating activities.
Key ratios
DKKm, % 2024 2023 %
ROCE, % 4.5 (14.2) 19 %p
Adjusted interest-bearing net debt, DKKm 71,392 59,056 21 %
FFO/adjusted interest-bearing net debt, % 13.2 28.6 (15 %p)
ROCE and FFO/adjusted interest-bearing net debt is specified in notes 2 ‘Return on capital employed’
and 5.1 ‘Interest- bearing net debt and FFO’.
· The initial margin payments were a cash inflow of
DKK 0.3 billion vs a cash inflow of DKK 2.2 billion
in 2023.
In 2024, we had a net cash outflow from work in
progress of DKK 3.8 billion, mainly related to the
construction of the Hornsea 3 and Hornsea 4 off-
shore transmission assets and the construction of
Gode Wind 3 for partners, partly offset by milestone
payments received for Borkum Riffgrund 3 and Greater
Changhua 4. In 2023, we had a cash outflow of DKK 0.7
billion, mainly related to construction of the Hornsea 3
offshore transmission assets and work at Greater
Changhua 1, partly offset by the sale of our remaining
50 % of the Hornsea 2 offshore transmission assets.
In 2024, we received tax equity contributions for Eleven
Mile Solar Center, Sparta Solar, and Mockingbird, while
we received tax equity contributions for Sunflower
in Onshore and South Fork in Offshore in 2023. In both
years, ‘Change in tax equity’ includes a reversal of
the non-cash recognition of tax credits and benefits
through EBITDA.
‘Change in other working capital’ was positively
affected by a DKK 6.2 billion prepayment of power
related to the divestment of an equity ownership stake
in a portfolio consisting of four UK offshore wind farms.
34 Management’s review
|
PerformanceØRSTED ANNUAL REPORT 2024
Taxonomy-aligned KPIs
Read more about our EU taxonomy-aligned
KPIs in our ‘Sustainability statements’.
Revenue 91 %
EBITDA 99 %
OPEX 86 %
Investments and divestments
Gross investments amounted to DKK 42.8 billion in
2024. The main investments were:
· offshore wind farms (DKK 33.0 billion), including
Greater Changhua 2b and 4 in Taiwan and our
portfolio of US and German projects
· onshore wind and solar PV farms (DKK 7.4 billion),
including the construction of Eleven Mile Solar Center,
Mockingbird, Badger Wind, and our portfolio of
European projects
· CHP plants (DKK 2.3 billion), including carbon
capture and storage facilities in Denmark.
In 2024, ‘Divestments’ amounted to DKK 15.7 billion
and were mainly related to the divestment of an equity
ownership stake in a portfolio consisting of four UK
offshore wind farms and a portfolio of four US onshore
wind farms, the farm-downs of Greater Changhua 4 and
Mockingbird, the sale of the French part of our European
Onshore portfolio, and customary compensation to our
partners in Hornsea 1 for wake-loss effects.
In 2023, ‘Divestments’ amounted to DKK 1.5 billion
and were related to the divestment of London Array,
a 50 % farm-down of Gode Wind 3, and our acquisition
of Eversource’s 50 % ownership share of Lease Area 500
and PSEG’s 25 % equity stake in Ocean Wind 1. As the
two US acquisitions are with non-controlling share-
holders, they are not included in ‘Gross investments’
but as part of ‘Divestments’.
Interest-bearing net debt
Interest-bearing net debt totalled DKK 58.0 billion at
the end of 2024 against DKK 47.4 billion at the end
of 2023. The increase was mainly due to a negative
free cash flow of DKK 8.8 billion, partly offset by net
issuance of hybrid capital in 2024.
Equity and capital employed
Equity
Equity was DKK 93.5 billion at the end of 2024 against
DKK 77.8 billion at the end of 2023. The partial divest-
ment of the four UK offshore wind farms and four US
onshore wind farms contributed DKK 10.4 billion to
non-controlling interests.
Capital employed
Capital employed was DKK 151.5 billion at the end
of 2024 against DKK 125.2 billion at the end of 2023,
mainly due to new investments.
Financial ratios
Return on capital employed (ROCE)
Return on capital employed (ROCE) was 4.5 % in 2024.
The increase of 19 percentage points compared to
last year was attributable to a higher EBIT due to
higher EBITDA and lower impairment losses in 2024.
ROCE adjusted for impairment losses and cancellation
fees in 2024 was 10.1 % vs 12.9 % in 2023.
Credit metric (FFO/adjusted net debt)
The funds from operations (FFO)/adjusted net debt
credit metric was 13.2 % in 2024 against 28.6 % in
2023. The decrease was due to lower FFO and higher
interest-bearing net debt. Adjusted for cancellation
fee payments, the credit metric was 21.6 % in 2024.
ESG results
Renewable share of heat and power generation
The renewable share of heat and power generation
amounted to 97 % in 2024, a 4 percentage point
increase compared to 2023. The increase was driven
by lower coal-based generation at the CHP plants.
Greenhouse gas emissions
Our greenhouse gas emissions from heat and power
generation (scopes 1 and 2) decreased by 54 % in 2024
compared to 2023, mainly due to a decrease in the
use of fossil fuels, primarily coal, at our CHP plants.
Our scope 1 and 2 greenhouse gas intensity decreased
to 16 g CO
2
e/kWh in 2024 against 38 g CO
2
e/kWh in
2023, mainly due to a decrease in scope 1 emissions
(numerator) together with an increase in total heat
and power generation (denominator).
Our scope 1-3 greenhouse gas intensity (excluding
gas sales) increased to 127 g CO
2
e/kWh in 2024
against 80 g CO
2
e/kWh in 2023, mainly due to scope 3
emissions from commissioned assets (capital goods). In
2024, we commissioned four major solar farms in the
US and three offshore wind farms in Taiwan and the
US, whereas we only commissioned four onshore wind
farms in 2023.
Safety
In 2024, we had 85 total recordable injuries (TRIs),
of which 66 injuries were related to contractors’
employees. This was an increase of 12 injuries or 16 %
compared to 2023. Total hours worked increased by
20 %, resulting in a decrease in the total recordable
injury rate (TRIR) from 2.8 in 2023 to 2.7 in 2024.
Gross investments 99 %
35 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Five-year summary
1
In 2023, we changed our accounting policy on recognition of revenue from the settlement of failed own-use contracts related to power.
The change only impacts revenue and cost of sales with no impact on EBITDA. The comparisons for 2022 have been adjusted, but 2020-2021
numbers have not been adjusted. The related power volumes in 2022 and 2023 have consequently been netted.
2
For 2021-2020, these business drivers are for US only.
Financial statements
DKKm 2024 2023 2022 2021 2020
Income statement
Revenue
1
71,034 79,255 114,417 77,673 50,151
EBITDA 31,959 18,717 32,057 24,296 16,598
Offshore 26,470 13,817 19,569 18,021 14,451
Sites, O&M, and PPAs 23,819 20,207 9,940 13,059 15,177
Construction agreements and divestment gains (1,065) 5,218 12,277 7,535 1,593
Cancellation fees 7,335 (9,621) - - -
Other (3,619) (1,987) (2,648) (2,573) (2,319)
Onshore 3,863 2,970 3,644 1,349 1,112
Bioenergy & Other 1,082 1,523 8,619 4,747 824
Other activities 544 407 225 179 210
Depreciation and amortisation (10,225) (9,795) (9,754) (7,972) (7,588)
Impairment (15,563) (26,775) (2,529) (129) -
Operating profit (loss) (EBIT) 6,171 (17,853) 19,774 16,195 9,010
Gain (loss) on divestment of enterprises (11) 234 331 (742) 10,831
Net financial income and expenses (3,591) (1,443) (2,536) (2,166) (2,524)
Profit (loss) before tax 2,606 (19,026) 17,609 13,277 17,324
Ta x (2,590) (1,156) (2,613) (2,390) (1,776)
Profit (loss) for the year 16 (20,182) 14,996 10,887 15,537
Balance sheet
Assets 298,786 281,136 314,142 270,385 196,719
Equity 93,484 77,791 95,532 85,137 97,329
Shareholders in Ørsted A/S 62,138 56,782 71,743 64,072 81,376
Hybrid capital 20,955 19,103 19,793 17,984 13,232
Non-controlling interests 10,391 1,906 3,996 3,081 2,721
Interest-bearing net debt 58,027 47,379 30,571 24,280 12,343
Capital employed 151,511 125,170 126,103 109,416 109,672
Additions to property, plant, and equipment 46,985 37,954 33,662 43,941 28,442
Cash flow
Cash flows from operating activities 18,356 28,532 11,924 12,148 16,466
Gross investments (42,808) (38,509) (37,447) (39,307) (26,967)
Divestments 15,680 1,542 25,636 21,519 19,039
Free cash flow (8,772) (8,435) 113 (5,640) 8,538
Financial ratios
Return on capital employed (ROCE), % 4.5 (14.2) 16.8 14.8 8.3
FFO/adjusted net debt, % 13.2 28.6 42.7 26.3 65.0
Number of outstanding shares, 31 December, ‘000 420,381 420,381 420,209 420,175 420,068
Share price, 31 December, DKK 324 374 631 835 1,244
Market capitalisation, 31 December, DKKbn 136 157 265 351 522
Earnings per share (EPS), DKK (2.2) (50.1) 34.6 24.3 38.8
Dividend yield, % - - 2.1 1.5 0.9
Business drivers 2024 2023 2022 2021 2020
Offshore
Decided (FID’ed) and installed capacity, GW 16.8 15.5 11.1 10.9 9.9
Installed capacity, GW 9.9 8.9 8.9 7.6 7.6
Generation capacity, GW 5.3 5.0 4.7 4.0 4.4
Wind speed, m/s 10.0 9.8 9.5 9.1 10.0
Load factor, % 42 43 42 39 45
Availability, % 88 93 94 94 94
Power generation, GWh 18,599 17,761 16,483 13,808 15,248
Power sales, GWh 19,967 21,448 23,194 25,020 29,152
Onshore
Decided (FID’ed) and installed capacity, GW 7.0 6.4 6.2 4.7 3.4
Installed capacity, GW 6.2 4.8 4.2 3.4 1.7
Wind speed
2
, m/s 7.2 7.2 7.4 7.4 7.6
Load factor
2
, wind, % 37 36 40 42 45
Load factor
2
, solar PV, % 25 24 25 24 -
Availability
2
, wind, % 90 88 93 96 96
Availability
2
, solar PV, % 98 98 98 96 -
Power generation, GWh 15,315 13,374 13,146 8,352 5,738
Bioenergy & Other
Degree days, number 2,485 2,585 2,548 2,820 2,432
Heat generation, GWh 6,919 6,587 6,368 7,907 6,671
Power generation, GWh 4,522 4,437 6,012 6,890 4,438
Power sales, GWh 2,426 2,627 5,399 8,797 11,623
Gas sales, GWh 17,372 16,880 31,637 61,349 90,347
Sustainability statements
Employees (FTE), end of year, number 8,278 8,905 8,027 6,836 6,179
Total recordable injury rate (TRIR) 2.7 2.8 3.1 3.0 3.6
Fatalities, number 0 0 0 0 0
Renewable share of energy generation, % 97 93 91 90 90
GHG emission (scopes 1 & 2), million tonnes 0.7 1.6 2.5 2.1 1.9
GHG intensity (scopes 1 & 2), g CO
2
e/kWh 16 38 60 58 58
GHG intensity (scopes 1-3 excl. gas sales), g CO
2
e/kWh 127 80 147 165 162
GHG emissions (scope 3), million tonnes 9.0 5.6 11.0 18.2 25.3
36 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Onshore
Group financial performance
EBITDA
Operating profit (EBITDA) for the fourth quarter
amounted to DKK 8.4 billion, DKK 9.0 billion higher
than in 2023. Adjusted for cancellation fees and new
partnerships, EBITDA decreased by DKK 1.1 billion
to DKK 7.6 billion. Of this, Offshore contributed with
DKK 5.8 billion (down DKK 1.0 billion from Q4 2023),
Onshore contributed with DKK 1.1 billion (up DKK 0.6
billion from Q4 2023), and Bioenergy & Other con-
tributed with DKK 0.9 billion (down DKK 0.6 billion from
Q4 2023).
The impact on EBITDA from cancellation fees was
an income of DKK 0.9 billion in Q4 2024 and related
to changes in the provision for onerous contracts for
Ocean Wind 1. New partnerships in Q4 2024 related to
the divestment of Mockingbird and Greater Changhua 4,
whereas new partnerships in Q4 2023 related to the
divestment of Gode Wind 3.
Impairment losses
We had net impairments of DKK 12.1 billion in Q4 2024
related to our US portfolio. The negative development
was driven by an increase in long-dated interest rates
in the US (DKK 4.3 billion across the portfolio), revalu-
ation of our Ocean Wind and Skipjack seabed leases
(DKK 3.5 billion), as well as construction delays and
higher expected costs due to increased risk related to
Sunrise Wind (DKK 4.3 billion excl. interest rate impact).
See note 3.2 ‘Impairments’ for more information.
Fourth quarter
Financial results
DKKm Q4 2024 Q4 2023 %
Revenue 21,077 21,530 (2 %)
EBITDA 8,353 (686) n.a.
New partnerships (127) 317 n.a.
Cancellation fees 926 (9,621) n.a.
EBITDA excl. new partnerships and cancellation fees 7,554 8,618 (12 %)
Depreciation and amortisation (2,571) (2,366) 9 %
Impairment (loss)/reversal (12,127) 1,647 n.a.
Operating profit (loss) (EBIT) (6,345) (1,405) 352 %
Gain (loss) on divestment of enterprises 34 (44) n.a.
Financial items, net (457) 2,001 n.a.
Profit (loss) before tax (6,761) 557 n.a.
Ta x 677 (841) n.a.
Tax rate 10 % 151 % (141 %p)
Profit (loss) for the period (6,084) (284) n.a.
EBITDA excluding new partnerships and cancellation fees
DKKbn
Other
Sites
CHP plants
Gas & Other
-0.2
-0.4
-0.1
Sites 1.4
Existing partnerships -1. 3
0.3
0.3
Other
Other
-1.1
Q4 2024 7. 6
Q4 2023 8.6
Offshore
Bio & Other
Tax and tax rate
Tax on profit for the quarter amounted to a net
income of DKK 0.7 billion compared to an expense
of DKK 0.8 billion in Q4 2023. The tax rate was 10 %
and was impacted by net unrecognised deferred tax
assets, including impairment losses and cancellation
fees.
Cash flows from operating activities
Cash flows from operating activities totalled DKK 10.3
billion in Q4 2024 compared to DKK 6.2 billion in Q4
2023 with positive year-over-year contributions from
a prepayment related to the partial divestment of four
UK wind farms, tax equity contributions, and lower
cash outflows related to financial instruments and
construction contracts, partly offset by cancellation
fee payments, higher paid taxes, and lower unwinding
of previous margin payments.
During Q4 2024, we had a net cash outflow of DKK 0.4
billion from payments of cancellation fees regarding
Ocean Wind 1 (part of ‘Change in provisions’).
During Q4 2024, cash flows from variation margin
payments on unrealised hedges (‘Change in variation
margin’) and initial margin payments at clearing
houses (part of ‘Change in other working capital’)
were net neutral, whereas we released DKK 3.0 billion
in Q4 2023.
37 Management’s review
|
PerformanceØRSTED ANNUAL REPORT 2024
In Q4 2024, we had a net cash outflow from work
in progress of DKK 0.4 billion, mainly related to the
construction of the Hornsea 3 offshore transmission
assets and the construction of Borkum Riffgrund 3
and Greater Changhua 1. This was partly offset
by milestone payments from partners in Greater
Changhua 4. In Q4 2023, we had a net cash outflow
of DKK 1.8 billion, mainly related to the construction
of the Hornsea 2 and Hornsea 3 offshore transmission
assets and the construction of Greater Changhua 1
and Borkum Riffgrund 3.
In Q4 2024, we received new tax equity contributions
for Mockingbird, while we did not receive any new tax
equity contributions in Q4 2023.
Change in ‘Other working capital’ was positively
affected in Q4 2024 by a DKK 6.2 billion prepayment
of power related to the divestment of an equity
ownership stake in a portfolio consisting of four UK
offshore wind farms.
Investments and divestments
Gross investments amounted to DKK 17.1 billion
in Q4 2024. The main investments were:
· offshore wind farms (DKK 13.4 billion), including
Greater Changhua 2b and 4 in Taiwan and our
portfolio of US and German projects
· onshore wind and solar PV farms (DKK 2.7 billion),
including the construction of Eleven Mile Solar Center,
Mockingbird, and our portfolio of European projects.
In Q4 2024, ‘Divestments’ amounted to DKK 13.3
billion and were mainly related to the divestment of
an equity ownership stake in a portfolio consisting
of four UK offshore wind farms and the farm-downs
of Greater Changhua 4 and Mockingbird. In Q4 2023,
divestments amounted to DKK 1.9 billion and were
mainly related to the 50 % farm-down of Gode Wind 3.
Cash flow and net debt
DKKm Q4 2024 Q4 2023 %
Cash flows from operating activities 10,306 6,170 67 %
EBITDA 8,353 (686) n.a.
Reversal of gain (loss) on divestment of assets (83) (692) (88 %)
Change in derivatives, excl. variation margin 203 (4,202) n.a.
Change in variation margin 74 2,690 (97 %)
Change in provisions (1,466) 8,330 n.a.
Other items (56) 354 n.a.
Interest expenses, net 158 2,259 (93 %)
Paid tax (3,147) (587) 436 %
Change in work in progress (399) (1,761) (77 %)
Change in tax equity partner liabilities 155 (527) n.a.
Change in other working capital 6,514 992 558 %
Gross investments (17,114) (13,039) 31 %
Divestments 13,317 1,861 616 %
Free cash flow 6,509 (5,008) n.a.
Net interest-bearing debt, beginning of period 62,817 42,892 46 %
Free cash flow (6,509) 5,008 n.a.
Dividends and hybrid coupon paid 535 440 22 %
Addition to lease obligations, net 36 13 177 %
Exchange rate adjustments, etc. 1,148 (974) n.a.
Net interest-bearing debt, end of period 58,027 47,379 22 %
38 Management’s review
|
PerformanceØRSTED ANNUAL REPORT 2024
Offshore
Financial results for Q4 2024
Power generation decreased by 5 % to 5.7 TWh
in Q4 2024 due to lower wind speeds. This was partly
offset by ramp-up of generation at South Fork and
Gode Wind 3.
Wind speeds amounted to a portfolio average of
11.1 m/s, which was lower than in Q4 2023 (11.5 m/s)
and the normal wind speeds expected in the fourth
quarter (11.5 m/s).
Availability was 94 %, which was 2 percentage points
higher than in the same period last year, due to
scheduled outages and component replacements
in Q4 2023 not being repeated to the same extent in
Q4 2024.
Revenue was at the same level as 2024 and amounted
to DKK 16.2 billion.
Revenue from offshore wind farms in operation
increased by 2 % to DKK 8.6 billion, mainly driven
by increased revenue from CfD contracts, ROCs,
and green certificates, only partly offset by lower
generation. Revenue from power sales decreased
by 8 % to DKK 6.2 billion, due to lower volumes sold
on third-party contracts. Revenue from construction
agreements mainly related to the construction of
Borkum Riffgrund 3 for partners.
EBITDA increased by DKK 9.3 billion and amounted
to DKK 6.6 billion.
EBITDA from ‘Sites, O&M, and PPAs’ increased by
DKK 1.4 billion and amounted to DKK 8.5 billion in
Q4 2024. The increase was driven by ramp-up of
generation from Gode Wind 3 and South Fork, higher
revenue from CfDs, ROCs and green certificates as
well as lower costs and higher O&M fees in Q4 2024.
This was only partly offset by lower wind speeds
(DKK 1.0 billion). In addition, we have reallocated
DKK 0.9 billion of indirect costs from ‘Sites’ to ‘Other’
at year end.
EBITDA from ‘Construction agreements and
divestment gains’ amounted to DKK -0.9 billion in
Q4 2024 and mainly related to updated assumptions
and an increased provision related to operation and
maintenance of offshore transmission assets in the
UK and higher costs for Borkum Riffgrund 3, which
reduced earnings under the construction agreement.
In Q4 2023, earnings mainly related to the divestment
of Gode Wind 3.
EBITDA from cancellation fees amounted to a net
income of DKK 0.9 billion in Q4 2024 and related to
changes in the provision for onerous contracts for
Ocean Wind 1. In Q4 2023, we had a negative effect
from cancellation fees related to our decision to cease
the development of Ocean Wind 1.
EBITDA from ‘Other’ was DKK 1.1 billion more negative
than in Q4 2023, of which DKK 0.9 billion related to the
cost reallocation, which had no impact on the total
EBITDA for Offshore.
Results Q4 2024 Q4 2023 % 2024 2023 %
Business drivers
Decided (FID’ed) and installed
capacity, GW 16.8 15.5 7 % 16.8 15.5 7 %
Installed capacity, GW 9.9 8.9 12 % 9.9 8.9 12 %
Generation capacity, GW 5.3 5.0 5 % 5.3 5.0 5 %
Wind speed, m/s 11.1 11.5 (3 %) 10.0 9.8 2 %
Load factor, % 51 56 (4 %p) 42 43 (1 %p)
Availability, % 94 92 2 %p 88 93 (5 %p)
Power generation, GWh 5,740 6,011 (5 %) 18,599 17,761 5 %
Denmark 596 623 (4 %) 2,061 1,970 5 %
The United Kingdom 3,064 3,434 (11 %) 10,357 10,887 (5 %)
Germany 701 733 (4 %) 2,356 2,076 13 %
The Netherlands 362 490 (26 %) 1,333 1,449 (8 %)
APAC 923 705 31 % 2,220 1,291 72 %
The US 94 26 253 % 272 88 210 %
Power sales, GWh 5,839 6,244 (6 %) 19,967 21,448 (7 %)
Power price, LEBA UK 117 117 21 % 88 116 (21 %)
British pound 9.0 8.6 4 % 8.8 8.6 3 %
Financial performance, DKKm
Revenue 16,203 16,058 1 % 53,808 58,427 (8 %)
Sites, O&M, and PPAs 8,613 8,425 2 % 26,627 23,304 14 %
Power sales 6,190 6,729 (8 %) 18,486 27,495 (33 %)
Construction agreements 719 784 (8 %) 6,991 6,589 6 %
Other 681 120 468 % 1,704 1,039 64 %
EBITDA 6,639 (2,611) n.a. 26,470 13,817 92 %
Sites, O&M, and PPAs 8,533 7,164 19 % 23,819 20,207 18 %
Construction agreements
and divestment gains (894) 676 n.a. (1,065) 5,218 n.a.
Cancellation fees 926 (9,621) n.a. 7,335 (9,621) n.a.
Other (1,926) (830) 132 % (3,619) (1,987) 82 %
Depreciation (1,808) (1,628) 11 % (7,091) (6,815) 4 %
Impairment losses (11,355) 1,462 n.a. (14,242) (25,526) (44 %)
EBIT (6,524) (2,777) 135 % 5,137 (18,524) n.a.
Cash flow from operating activities 12,193 6,005 103 % 12,931 21,209 (39 %)
Gross investments (13,404) (9,690) 38 % (33,023) (28,613) 15 %
Divestments 12,147 1,790 579 % 11,293 1,500 653 %
Free cash flow 10,936 (1,895) n.a. (8,799) (5,904) 49 %
Capital employed 103,599 83,574 24 % 103,599 83,574 24 %
39 Management’s review
|
PerformanceØRSTED ANNUAL REPORT 2024
Onshore
Financial results for Q4 2024
Power generation increased by 21 % compared to
Q4 2023 and amounted to 4.1 TWh. The increase was
due to ramp-up of generation at Sunflower, Sparta
Solar (part of Helena Energy Center), Mockingbird, and
Eleven Mile Solar Center. In Q4 2024, the wind speeds
across the portfolio were 7.5 m/s, slightly below Q4
2023 and a normal wind year (7.7 m/s).
Revenue was slightly below Q4 2023 and amounted
to DKK 0.6 billion.
EBITDA for Q4 2024 amounted to DKK 1.1 billion,
which was DKK 0.5 billion higher than the same
period last year. The increase was mainly due to the
mentioned ramp-up of generation from new assets
in operation, lower project development costs, and
a gain on sale of components.
Divestment gain/(loss) for Q4 2024 amounted to
DKK -0.1 billion and related to the 50 % farm-down
of Mockingbird. As part of the transaction, DKK 0.3
billion of previously expensed deferred tax liabilities
related to tax equity contributions were reversed in
the tax line item.
Results Q4 2024 Q4 2023 % 2024 2023 %
Business drivers
Decided (FID’ed) and installed
capacity, GW 7.0 6.4 5 % 7.0 6.4 9 %
Installed capacity, GW 6.2 4.8 29 % 6.2 4.8 29 %
Wind speed, m/s 7.5 7.6 (1 %) 7.2 7.2 0 %
Load factor, wind, % 40 36 3 %p 37 36 1 %p
Load factor, solar PV, % 20 17 4 %p 25 24 1 %p
Availability, wind, % 90 85 6 %p 90 88 2 %p
Availability, solar PV, % 98 98 0 %p 98 98 (0 %p)
Power generation, GWh 4,086 3,376 21 % 15,315 13,374 15 %
The US, wind 2,925 2,640 11 % 10,939 10,124 8 %
The US, solar PV 883 391 126 % 3,346 2,131 57 %
Europe, wind and solar PV 278 344 (19 %) 1,030 1,119 (8 %)
US dollar 7.0 6.9 1 % 6.9 6.9 0 %
Financial performance, DKKm
Revenue 554 598 (7 %) 2,720 2,620 4 %
EBITDA 1,061 525 102 % 3,863 2,970 30 %
Sites 374 394 (5 %) 1,396 1,256 11 %
Tax credits and tax attributes 904 590 53 % 3,253 2,567 27 %
Divestment gains/(loss) (88) - n.a. (88) - n.a.
Other (129) (460) (72 %) (697) (854) (18 %)
Depreciation (523) (498) 5 % (2,190) (1,957) 12 %
Impairment losses (772) 507 n.a. (1,321) (927) 42 %
EBIT (234) 534 n.a. 352 86 309 %
Cash flow from operating activities 1,420 (11) n.a. 4,459 609 632 %
Gross investments (2,698) (3,024) (11 %) (7,391) (9,069) (19 %)
Divestments 1,171 3 n.a. 4,430 5 n.a.
Free cash flow (107) (3,032) (96 %) 1,498 (8,455) n.a.
Capital employed 39,443 35,634 11 % 39,443 35,634 11 %
40 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Bioenergy & Other
Financial results for Q4 2024
Heat generation decreased by 1 % in Q4 2024, mainly
due to warmer weather. Power generation increased
by 37 % due to improved wood pellet spreads for
power condensing generation.
Gas sales increased by 32 %, driven by our offtake
contract with DUC as a consequence of the ramp-up of
production from the Tyra field (not owned by Ørsted).
EBITDA amounted to DKK 0.9 billion compared to
DKK 1.4 billion in Q4 2023.
EBITDA from ‘CHP plants’ was DKK 0.7 billion, DKK 0.2
billion lower than in Q4 2023. This was mainly due to a
contractual compensation in Q4 2023 from Energinet,
the Danish TSO, for keeping three of our power stations
operational, which was not repeated in 2024. This was
only partly offset by higher sales of ancillary services,
higher generation, and better spreads.
EBITDA from ‘Gas Markets & Infrastructure’ decreased
by DKK 0.3 billion to DKK 0.2 billion in Q4 2024.
The decrease was driven by a positive effect from
revaluation of our gas at storage during Q4 2023, which
was not repeated to the same extent in Q4 2024.
Results Q4 2024 Q4 2023 % 2024 2023 %
Business drivers
Degree days 846 966 (12 %) 2,485 2,585 (4 %)
Heat generation, GWh 2,367 2,385 (1 %) 6,919 6,587 5 %
Power generation, GWh 1,428 1,042 37 % 4,522 4,437 2 %
Gas sales, GWh 4,016 3,041 32 % 17,372 16,880 3 %
Power sales, GWh 635 628 1 % 2,426 2,627 (8 %)
Gas price, TTF, EUR/MWh 42.8 43.3 5 % 34.3 41.4 (16 %)
Power price, DK, EUR/MWh 88.1 91.1 24 % 70.7 89.3 (16 %)
Green dark spread, DK, EUR/MWh (10.9) (5.4) 102 % (25.9) (25.8) (30 %)
Wood pellet spread, DK, EUR/MWh 8.4 (0.5) n.a. 6.4 4.3 49 %
Financial performance, DKKm
Revenue 4,456 5,235 (15 %) 15,105 19,230 (21 %)
EBITDA 869 1,434 (39 %) 1,082 1,523 (29 %)
CHP plants 679 836 (19 %) 1,248 1,218 2 %
Gas Markets & Infrastructure 245 589 (58 %) 249 558 (55 %)
Other (55) 9 n.a. (415) (253) 64 %
Depreciation (171) (180) (4 %) (667) (759) (12 %)
Impairment losses - (322) n.a. - (322) n.a.
EBIT 698 932 (25 %) 415 442 (6 %)
Cash flow from operating activities (1,094) 358 n.a. 1,939 2,550 (24 %)
Gross investments (950) (374) 154 % (2,250) (727) 209 %
Divestments - 64 n.a. - 61 n.a.
Free cash flow (2,044) 48 n.a. (311) 1,884 n.a.
Capital employed 5,679 4,655 22 % 5,679 4,655 22 %
41 Management’s review
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PerformanceØRSTED ANNUAL REPORT 2024
Quarterly summary, 2023–2024
Financial statements
DKKm
2024 2023
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Income statement
Revenue 21,077 15,766 15,023 19,168 21,530 17,441 14,565 25,719
EBITDA 8,353 9,548 6,570 7,488 (686) 9,173 3,320 6,910
Offshore 6,639 8,530 5,218 6,083 (2,611) 8,037 2,979 5,412
Sites, O&M, and PPAs 8,533 3,958 4,400 6,928 7,164 4,050 3,135 5,859
Construction agreements
and divestment gains (894) 106 6 (283) 676 4,245 340 (42)
Cancellation fees 926 5,109 1,300 - (9,621) - - -
Other (1,926) (643) (488) (562) (830) (258) (496) (405)
Onshore 1,061 991 995 816 525 819 792 834
Bioenergy & Other 869 (185) (36) 434 1,434 155 (583) 517
Other activities/eliminations (216) 212 393 155 (34) 162 132 147
Depreciation and amortisation (2,571) (2,548) (2,683) (2,423) (2,366) (2,537) (2,454) (2,438)
Impairment (12,127) (284) (3,913) 761 1,647 (28,422) - -
Operating profit (loss) (EBIT) (6,345) 6,716 (26) 5,826 (1,405) (21,786) 866 4,472
Gain (loss) on divestment of enterprises 34 14 (7) (52) (44) (50) 159 169
Net financial income and expenses (457) (1,235) (552) (1,347) 2,001 (128) (1,797) (1,519)
Profit (loss) before tax (6,761) 5,508 (575) 4,434 557 (21,955) (763) 3,135
Ta x 677 (339) (1,103) (1,825) (841) (607) 225 67
Profit (loss) for the period (6,084) 5,169 (1,678) 2,609 (284) (22,562) (538) 3,202
Balance sheet
Assets 298,786 290,341 286,002 290,383 281,136 286,782 296,466 306,644
Equity 93,484 91,127 83,368 83,325 77,791 78,361 103,548 102,826
Shareholders in Ørsted A/S 62,138 65,987 56,446 58,709 56,782 57,304 82,379 78,551
Hybrid capital 20,955 20,955 22,792 22,792 19,103 19,103 19,103 19,793
Non-controlling interests 10,391 4,185 4,130 1,824 1,906 1,954 2,066 4,482
Interest-bearing net debt 58,027 62,817 49,366 49,864 47,379 42,892 43,924 35,261
Capital employed 151,511 153,944 132,734 133,189 125,170 121,253 147,471 138,087
Additions to property, plant, and equipment 19,111 11,375 8,479 8,020 12,064 10,988 6,963 7,939
Cash flows
Cash flows from operating activities 10,306 (1,639) 6,081 3,608 6,170 9,796 2,447 10,119
Gross investments (17,114) (9,780) (8,292) (7,622) (13,039) (9,204) (7,498) (8,768)
Divestments 13,317 108 2,993 (738) 1,861 1,735 (2,038) (16)
Free cash flow 6,509 (11,311) 782 (4,752) (5,008) 2,327 (7,089) 1,335
Financial ratios
Return on capital employed (ROCE), % LTM 4.5 8.1 (12.4) (12.2) (14.2) (13.7) 13.2 13.8
FFO/adjusted net debt, % LTM 13.2 12.6 22.7 18.7 28.6 20.9 17.7 37.4
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 324 445 371 384 374 385 645 583
Market capitalisation, end of period, DKKbn 136 187 156 162 157 162 271 245
Earnings per share (EPS), DKK (15.8) 12.0 (4.1) 5.7 (1.6) (53.8) (1.4) 6.7
Business drivers
2024 2023
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Offshore
Decided (FID’ed) and installed capacity, GW 16.8 16.8 16.8 16.5 15.5 12.0 12.0 12.0
Installed capacity, GW 9.9 9.9 9.8 9.8 8.9 8.9 8.9 8.9
Generation capacity, GW 5.3 5.2 5.1 5.1 5.0 5.0 4.9 4.7
Wind speed, m/s 11.1 8.4 9.0 11.4 11.5 8.6 8.1 10.9
Load factor, % 51 31 33 52 56 33 29 53
Availability, % 94 89 83 85 92 93 91 95
Power generation, GWh 5,740 3,522 3,667 5,670 6,011 3,544 3,044 5,162
Power sales, GWh 5,839 4,010 3,854 6,264 6,244 3,948 4,158 7,098
Onshore
Decided (FID’ed) and installed capacity, GW 7.0 6.4 6.4 6.4 6.4 6.2 6.2 6.2
Installed capacity, GW 6.2 5.7 5.6 4.8 4.8 4.8 4.6 4.5
Wind speed, m/s 7.5 6.2 7.4 7.9 7.6 6.2 6.7 8.1
Load factor, wind, % 40 26 41 42 36 27 35 45
Load factor, solar PV, % 20 31 29 18 17 32 30 16
Availability, wind, % 90 87 92 89 85 85 92 91
Availability, solar PV, % 98 97 97 98 98 98 98 99
Power generation, GWh 4,086 3,270 4,187 3,772 3,376 2,927 3,321 3,750
Bioenergy & Other
Degree days, number 846 79 360 1,200 966 53 409 1,157
Heat generation, GWh 2,367 332 935 3,285 2,385 234 790 3,178
Power generation, GWh 1,428 805 805 1,484 1,042 781 917 1,697
Power sales, GWh 635 577 581 633 628 566 556 877
Gas sales, GWh 4,016 4,138 4,051 5,167 3,041 5,355 4,016 4,468
Sustainability statements
Employees (FTE), end of period, number 8,278 8,377 8,411 8,706 8,905 8,906 8,661 8,422
Total recordable injury rate (TRIR) 2.7 2.3 2.1 2.9 2.8 2.9 2.6 2.7
Fatalities, number 0 0 0 0 0 0 0 0
Renewable share of energy generation, % 99 96 97 97 95 94 97 89
GHG emissions (scopes 1 & 2), million tonnes 0.1 0.3 0.2 0.2 0.4 0.3 0.2 0.7
GHG intensity (scopes 1 & 2), g CO
2
e/kWh 5 40 16 14 25 46 24 52
GHG intensity (scopes 1-3, excl. gas sales),
g CO
2
e/kWh 65 194 262 57 62 94 77 90
GHG emissions (scope 3), million tonnes 1.7 2.2 3.3 1.8 1.2 1.6 1.3 1.5
42 Management’s review
|
PerformanceØRSTED ANNUAL REPORT 2024
→
Solar panels are just one part of the Eleven Mile Solar Center in
Pinal County near Phoenix, Arizona, the US. The 300 MW facility,
which was commissioned in 2024, also features battery storage
that can hold 1,200 MWh of power. The combination of solar
and storage allows for a highly reliable supply of renewable
energy to help power homes and businesses – and, in this case,
Meta’s planned data centre in Mesa, Arizona.
Corporate
governance
44 Governance framework
46 Board of Directors
50 Group Executive Team
53 Summary of our remuneration report
54 Shareholder information
43 Management’s review ØRSTED ANNUAL REPORT 2024
Our governance model
Board of Directors
Shareholders and general meeting
Nomination &
Remuneration
Committee
Audit & Risk
Committee
Asset Project
Committee
Internal
Audit
QHSE Committee
Compliance Committee
Cybersecurity Committee
Group Executive Team
Sustainability governance, see pages 63-64
44 Management’s review
|
Corporate governanceØRSTED ANNUAL REPORT 2024
45 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
46 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
47 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
48 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
49 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
Rasmus Errboe
Group President and CEO
Trond Westlie
CFO
Henriette Fenger Ellekrog
CHRO
Patrick Harnett
COO
50 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
51 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
52 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
STI
Short-term incentive scheme, components
25 % ESG 45 % Financial
30 % Business & leadership
(individual target)
LTI
Long-term incentive scheme, components
100 % TSR performance vs industry peers
53 Management’s review
|
Corporate governanceØRSTED ANNUAL REPORT 2024
200
300
400
500
0
1,000,000
2,000,000
3,000,000
Share price development 2024
Ørsted share price compared to peers (indexed)
OMXC25 Index rebased Ørsted MSCI EU Utilities Index rebased PX volume
500
400
3,000,000
300
2,000,000
200
1,000,000
0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
VolumesShare price
54 Management’s review
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Corporate governanceØRSTED ANNUAL REPORT 2024
Shareholders as of 31 December 2024
Share capital and/or voting share %
Selected company
announcements in 2024
Financial calendar
2025
Danish State (majority shareholder) 50.1 %
Andel A .M.B.A 5 %
Remaining Danish owners 6.0 %
United Kingdom 6.2 %
United States 6.1 %
Others 14.1 %
19 February
New Chair and Deputy Chair of Ørsted’s
Board of Directors
27 February
Ørsted appoints new Group CFO and COO
13 March
Ørsted divests share of four US onshore
wind farms to Stonepeak
21 March
Ørsted updates its executive management
structure and appoints Rasmus Errboe as
Deputy CEO
29 April
Ørsted to divest its French onshore business
29 August
Ørsted shuts down its last combined coal-fired
heat and power plant
3 September
Ørsted’s Hornsea 3 and Hornsea 4 awarded
capacity in UK allocation round 6.
30 October
Ørsted divests share of four UK offshore wind
farms to Brookfield
11 December
Ørsted brings in Cathay Life Insurance as investor
in Greater Changhua 4 Offshore Wind Farm
18 December
Ørsted divests shares in three US solar and
battery storage projects to Energy Capital
Partners
6 February Annual report 2024
3 April Annual general meeting
Interim reports:
7 May The first quarter of 2025
13 August The first half-year of 2025
5 November The first nine months of 2025
Equinor ASA 10 %
Danish retail investors 2.4 %
55 Management’s review
|
Corporate governanceØRSTED ANNUAL REPORT 2024
Management’s
review
Strategy and business
Corporate governance
Sustainability
statements
General
Environment
Social
Governance
Contents
Sustainability statements
General
ESRS 2 Basis for preparation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 59
ESRS 2 ESRS disclosure requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 60
ESRS 2 Sustainability governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63
ESRS 2 Our business model and how we create value � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 65
ESRS 2 Our strategy and impact on sustainability matters� � � � � � � � � � � � � � � � � � � � � � � � 66
ESRS 2 Double materiality assessment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 67
· Value chain overview
· Material impacts, risks, and opportunities (IROs)
· Methodology and process
ESRS 2 Interests and views of our stakeholders � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 75
ESRS 2 Sustainability due diligence � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 77
ESRS 2 ESRS data points from other EU legislation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 78
Environment
ESRS E1 Climate change � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 81
n.a. EU taxonomy for sustainable activities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 103
ESRS E4 Biodiversity and ecosystems � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 108
ESRS E5 Resource use and circular economy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 116
Social
ESRS S1 Own workforce � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 124
ESRS S2 Workers in the value chain � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 137
ESRS S3 Affected communities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 145
Governance
ESRS G1 Business conduct � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 153
57 Sustainability statements ØRSTED ANNUAL REPORT 2024
→
The offshore wind farms Greater Changhua 1 and 2a are
Taiwan’s first large-scale offshore wind farms. They have a
tatal capacity of 900 MW and produce renewable energy
for Taiwanese households.
59 ESRS 2 Basis for preparation
60 ESRS 2 ESRS disclosure requirements
63 ESRS 2 Sustainability governance
65 ESRS 2 Our business model and how we create value
66 ESRS 2 Our strategy and impact on sustainability matters
67 ESRS 2 Double materiality assessment
68 · Value chain overview
69 · Material impacts, risks, and opportunities (IROs)
73 · Methodology and process
75 ESRS 2 Interests and views of our stakeholders
77 ESRS 2 Sustainability due diligence
78 ESRS 2 ESRS data points from other EU legislation
58 Sustainability statements ØRSTED ANNUAL REPORT 2024
59 Sustainability statements
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60 Sustainability statements
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61 Sustainability statements
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62 Sustainability statements
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// ESRS 2, GOV-1
Our sustainability governance model
Board of Directors
Business functions
Support functions
Group Executive Team
ESRS topic Group Executive Team accountable person | Supportive decision forums
E1
Climate change COO | Decarbonisation Core Group
E2
Pollution* COO | QHSE Committee
E3
Water and marine resources* COO | QHSE Committee
E4
Biodiversity and ecosystems CCO | Biodiversity & Community Impact Core Group
E5
Resources and circular economy COO | Decarbonisation Core Group
S1
Own workforce (excl. safety) CHRO | People & Culture Leadership
S1
Own workforce (safety) COO | QHSE Committee
S2
Workers in the value chain COO | Human Rights Task Force
S3
Affected communities CCO | Biodiversity & Community Impact Core Group
G1
Business conduct
Head of Legal** | Compliance Committee
Nomination & Remuneration Committee
Asset Project Committee
Audit & Risk Committee
Internal Audit
* The ESRS topics E2 and E3 are immaterial according to our DMA results in 2024.
** Responsibility delegated to group management team level as ‘Business conduct’
overlaps with existing mandate in the department Group Legal.
63 Sustainability statements
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64 Sustainability statements
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· Natural resources
· Human capital
· Financial capital
· Stakeholder relationships
Develop Secure pipeline through
land and project rights, grid access,
and permits
Construct Thorough supplier selection
and local content adherence
Operate Ensure high availability
and balance power to the grid
Own Manage and optimise our asset
portfolio and partnerships
· Customers
· Communities
· Shareholders
· Employees
Key inputs
and what we depend on
Activities
in our business model
Key outputs
and benefits created
65 Sustainability statements
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GeneralØRSTED ANNUAL REPORT 2024
We develop, construct, and operate renewable energy assets at scale
Strategic sustainability priorities
// ESRS 2, SBM-1
Key elements of our strategy that impact sustainability matters
Resources
· Use of virgin and scarce raw materials
· Energy- and emissions-intensive supply chain
· Vulnerable supply chain workers
Land and sea space
· Renewable energy capacity build-out should
co-exist with nature
· Ecosystem and biodiversity impacts from
our supply chain
Public and political support
· Local resistance to renewable energy assets
· Political opposition to and lack of support for
renewable energy build-out
How we respond to these challenges
Decarbonisation (ESRS E1 and E5)
Optimise the use of resources and
energy and reduce GHG emissions
· Collaboration with suppliers to decarbonise
materials and processes
· Roadmaps to decarbonise key resources
and processes
· Partnerships to improve recyclability
of our renewable energy assets
Biodiversity (ESRS E4)
Protect and preserve nature and reduce
direct impact drivers of biodiversity loss
· Application of our measurement framework
and the mitigation hierarchy
· Site monitoring and action plans, including
positive impact efforts
Community impact (ESRS S3)
Ensure people in the regions where we operate
benefit from and support the build-out
· Engagement and ongoing dialogue with
affected communities
· Integration of affected communities’
perspectives in project planning phase
Foundational sustainability areas
Main challenges
Human rights
(ESRS S1, S2, S3)
· Human rights due diligence
· Risk-based audits and supplier
assessments
Health and safety
(ESRS S1, S2)
· High focus on safety measures
· Recurring safety training and
awareness campaigns
People management,
diversity and inclusion
(ESRS S1)
· Employee engagement
· Inclusive workplace
· Flexible working conditions
Business conduct
(ESRS G1)
· Good business conduct
policy and training
· Grievance mechanisms
· Climate advocacy
(political engagement)
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S1 Own workforce
+ / − R
S2 Workers in the value chain
− R
E2 Pollution
E3 Water and marine resources
S4 Consumers and end-users G1 Business conduct
+
E1 Climate change
+ O
E5 Resource use and circular economy
− R
S3 Affected communities
+ / − R
E4 Biodiversity and ecosystems
− O
MATERIAL
IMMATERIAL
MATERIAL
DOUBLE MATERIALITY
Crucial
Crucial
Financial materiality
Significant
Significant
Impact materiality
Immaterial
Immaterial
R Risk
O Opportunity
+ Positive impact
– Negative impact
Materiality threshold
67 Sustainability statements
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Biodiversity
restoration
Downstream value chain
Mining of
minerals and
metals
Animal
habitats
Resource
extraction and
processing
Society
Supply chain
workers
Affected
communities
Upstream value chain
Farm-downs
Gas and power
sales
Own operations
Ørsted
workplaces
Employees
Supplier
management
Power
stations
Solar
farms
Energy
storage
Onshore wind
farms and onshore
renewables
construction
Offshore
wind farm
construction
Offshore
wind farms
Positive impacts
Renewable energy
deployment (E1)
Local jobs and
educational
opportunities (S3)
Sustainability-related opportunities
Renewable energy
deployment (E1)
Biodiversity restoration,
research, and innova-
tion initiatives (E4)
Negative impacts
Natural resources
exploitation and land-
use and freshwater-use
change (E4)
Habitat loss from land
degradation (E4)
Species population size
decrease, and extinction
risk increase (E4)
Use and depletion of
virgin materials (E5)
Pollution from mining
may affect communities’
health (S3)
Indigenous Peoples’
rights and livelihoods
possibly disrespected or
disrupted by suppliers
(S3)
Sustainability-related risks
Climate-related
transition risks due to
changes in political
support (E1)
Climate-related
physical risks (E1)
Dependence on scarce
critical raw materials
(E5)
Increased voluntary
turnover (S1)
Possible supplier mis-
conduct concerning
forced labour (S2)
Local communities’
resistance and
concerns (S3)
Increasing local con-
tent and social impact
requirements in tender
processes (S3)
Consent of Indigenous
communities (S3)
// ESRS 2, SBM-1 and SBM-3
Value chain overview
Our material sustainability-related impacts, risks,
and opportunities (IROs
1
) across our full value chain
1
Impacts shown in this overview have a materiality level
of ‘crucial’, and the risks and opportunities shown have a
materiality level of ‘crucial’ or ‘significant’.
68 Sustainability statements
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Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
69 Sustainability statements
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Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
70 Sustainability statements
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Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
71 Sustainability statements
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Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
Immaterial Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant Crucial
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
I Impact
R Risk
O Opportunity
+ Positive
– Negative
A Actual
P Potential
OO Own operations
VC Value chain
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO
within a sub-topic determines
the placement of that sub-
topic (number) in the matrix.
72 Sustainability statements
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Planet and society
Financial materiality
(outside-in)
Double materiality approach
Ørsted
Impact materiality
(inside-out)
73 Sustainability statements
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74 Sustainability statements
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75 Sustainability statements
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76 Sustainability statements
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77 Sustainability statements
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78 Sustainability statements
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79 Sustainability statements
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81 ESRS E1 Climate change
103 EU taxonomy for sustainable activities
108 ESRS E4 Biodiversity and ecosystems
116 ESRS E5 Resource use and circular economy
→
European flat oysters are cultivated along with horse mussels at
DTU Aqua’s hatchery in Denmark. These bivalves are the true stars
of our BioReef partnership with DTU Aqua and WWF Denmark.
Together, we are aiming to establish biogenic reefs in the Danish
part of the North Sea to help support healthy marine ecosystems.
Projects like this form part of our work to innovate and test
solutions that can contribute to our target of having a net-positive
biodiversity impact on renewable energy projects.
80 Sustainability statements
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Upstream value chain Downstream value chainOwn operations
Positive impact Negative impact Risk Opportunity
Carbon removal through
nature-based projects
Potential positive impact
Scope 3 GHG emissions
from regular power sales
and natural gas sales
Negative impact
Scope 3 GHG emissions
from regular power sales
and natural gas sales
Negative impact
Climate-related physical
risks (chronic and acute)
Risk
Energy consumption,
mainly at our CHP plants
Negative impact
Scope 3 GHG emissions
from the renewable
energy supply chain
Negative impact
Climate-related transition risks due
to changes in political support for
the renewable energy build-out
Risk
Renewable energy deployment
Positive impact
Opportunity
Scope 1 and 2 GHG emissions
from our operations
Negative impact
81 Sustainability statements
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ESRS E1
82 Sustainability statements
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ESRS E1
83 Sustainability statements
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|
ESRS E1
84 Sustainability statements
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|
ESRS E1
85 Sustainability statements
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|
ESRS E1
86 Sustainability statements
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|
ESRS E1
87 Sustainability statements
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ESRS E1
88 Sustainability statements
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ESRS E1
89 Sustainability statements
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ESRS E1
90 Sustainability statements
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ESRS E1
Share of renewable energy
generation
%
2022 20252006 20242023
91
99
17
97
93
Installed renewable
capacity
GW
//2022 2023 2024 2026
15.1
15.7
18.2
22
Scope 1-3 greenhouse gas emissions
intensity (excl. gas sales)
g CO
2
e/kWh
2022 20302023 2024 20402018 //
Science-based
targets
322
75
147
<2.9
80
127
-7 7 %
-99 %
Scope 3 greenhouse gas emissions from
gas sales
Mt CO
2
e
2022 20302023 2024 20402018 // //
Science-based
targets
24
8
7
<2.4
4 4
- 67 %
-90 %
Scope 1-2 greenhouse gas emissions
intensity
g CO
2
e/kWh
2022 20252023 20302024 20402018 //
Science-based
targets
136
60
10
38
6
16
<1
-93 %
-96 %
-99 %
SBTi-validated climate targets 2018-2040
91 Sustainability statements
|
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|
ESRS E1
92 Sustainability statements
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|
ESRS E1
93 Sustainability statements
|
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|
ESRS E1
94 Sustainability statements
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|
ESRS E1
95 Sustainability statements
|
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|
ESRS E1
96 Sustainability statements
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|
ESRS E1
97 Sustainability statements
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ESRS E1
Q1 Q2 Q3 Q4
Additions for the last 12 months
Installed capacity Decided (FID’ed) capacity (above 20 MW) Awarded (offshore) and contracted (onshore) capacity (above 20 MW)
Delta Sévre-Argent,
Onshore wind (9 MW)
Sunrise Wind,
Offshore wind (924 MW)
Farranrory,
Onshore wind (43 MW)
South Fork,
Offshore wind (132 MW)
Old 300,
Solar PV (73 MW)
Amberg Süd,
Solar PV (4 MW)
Hornsea 4,
Offshore wind (4,200 MW)
Greater Changua 1 and 2a,
Offshore wind (900 MW)
Eleven Mile,
· Solar PV (300 MW)
· Battery storage (300 MW)
Sparta Solar,
Solar PV (250 MW)
Hornsea 3,
Battery storage (300 MW)
Mockingbird,
Solar PV (471 MW)
Badger Wind,
Onshore wind (259 MW)
Ballinrea Solar Farm,
Solar PV (55 MW)
Old 300 BESS,
Battery storage (250 MW)
98 Sustainability statements
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ESRS E1
99 Sustainability statements
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ESRS E1
100 Sustainability statements
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ESRS E1
101 Sustainability statements
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ESRS E1
Total heat and power generation
by energy source 2024
%
Offshore wind
41
Onshore wind
26
Sustainable biomass
22
Solar PV
7
Coal
2
Natural gas
1
Other
1
1
1
Other renewable and fossil energy sources
2024
2023
97
93
Share of renewable energy generation
%
102 Sustainability statements
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ESRS E1
103 Sustainability statements
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EU taxonomy for sustainable activities
104 Sustainability statements
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Taxonomy-aligned activities
105 Sustainability statements
|
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Taxonomy-aligned activities
106 Sustainability statements
|
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Taxonomy-aligned activities
107 Sustainability statements
|
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|
Taxonomy-aligned activities
Own operationsUpstream value chain
Positive impact Negative impact Risk Opportunity
Natural resources exploitation
and land- and freshwater-use
change from mining
Negative impact
Species population size
decrease and extinction risk
increase due to mining
Negative impact
Temporary disturbances to
habitats during construction
Negative impact
Biodiversity restoration,
research, and innovation
initiatives
Positive impact
Opportunity
Ecotoxicity from mining
Negative impact
Habitat loss from land
degradation due to mining
Negative impact
Land- and sea-use
change from coal and
gas extraction
Negative impact
Temporary displacement
or loss of species during
construction
Negative impact
108 Sustainability statements
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ESRS E4
109 Sustainability statements
|
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ESRS E4
110 Sustainability statements
|
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ESRS E4
111 Sustainability statements
|
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|
ESRS E4
112 Sustainability statements
|
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|
ESRS E4
113 Sustainability statements
|
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ESRS E4
114 Sustainability statements
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ESRS E4
115 Sustainability statements
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ESRS E4
Own operationsUpstream value chain
Positive impact Negative impact Risk Opportunity
Use and depletion of
virgin materials
Negative impact
Materials wasted during construction,
operations, and decommissioning
Negative impact
Dependence on scarce
critical raw materials
Risk
116 Sustainability statements
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ESRS E5
117 Sustainability statements
|
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ESRS E5
118 Sustainability statements
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ESRS E5
Resource inflows for an
average offshore wind farm
Illustrative example of the material
composition for an average Ørsted offshore
wind farm
1
3 % copper and 1 % other materials.
63 %
Steel
4 % Critical raw materials
1
4 % Glass fibre and plastics
3 % Iron
26 %
Concrete
119 Sustainability statements
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ESRS E5
120 Sustainability statements
|
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ESRS E5
121 Sustainability statements
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ESRS E5
122 Sustainability statements
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ESRS E5
124 ESRS S1 Own workforce
137 ESRS E2 Workers in the value chain
145 ESRS E3 Affected communities
→
Beside Knockawarriga Onshore Wind Farm, County Limerick,
Ireland, stands a local football club with facilities used by
170 competitive players. With funding from Ørsted over the last
three years, the club has installed an electricity supply, invested
in energy efficient floodlights, bought a robotic lawnmower,
and set up solar panels on the clubhouse roof. Sports clubs play
an important role in rural communities like this one, where
120 children play football every week.
123 Sustainability statements
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Own operations
Positive impact Negative impact Risk Opportunity
Flexible working conditions
Positive impact
Increased voluntary
turnover
Risk
Possible work-related
injuries and fatalities
Potential negative
impact
Work-induced stress
Negative impact
Unequal gender distribution
in management
Negative impact
124 Sustainability statements
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ESRS S1
125 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
126 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
127 Sustainability statements
|
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|
ESRS S1
128 Sustainability statements
|
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|
ESRS S1
129 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
130 Sustainability statements
|
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|
ESRS S1
131 Sustainability statements
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|
ESRS S1
Gender balance, people leaders
%, women/men
2030
33/67
40/60
33/67
2024
2023
Gender balance, senior directors and above
%, women/men
2030
24/76
40/60
22/78
2024
2023
// S1-5
Targets
Gender balance, total workforce
%, women/men
2030
34/66
40/60
35/65
2024
2023
Employee satisfaction in top 25 %
compared to external benchmark group
(Index 0-100)
Ørsted
Ennova benchmark top 25 %
Ennova benchmark
20232022 20242023
20252024
Total recordable injury rate (TRIR)
Injuries per million hours worked
8
6
4
2
0
100
75
50
25
0
2.5
2.8
2.7
76/77/74 76/76/73 70/77/73
132 Sustainability statements
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|
ESRS S1
133 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
134 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
135 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S1
136 Sustainability statements
|
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|
ESRS S1
Upstream value chain
Positive impact Negative impact Risk Opportunity
Debt bondage
Negative impact
Possible supplier misconduct
concerning forced labour
Risk
State-imposed forced
labour may occur in the
solar PV supply chain
Potential negative impact
Excessive working hours
for supply chain workers
Negative impact
Possible work-related
injuries and fatalities for
supply chain workers
Potential negative impact
137 Sustainability statements
|
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|
ESRS S2
138 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S2
139 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S2
140 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S2
141 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S2
142 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S2
143 Sustainability statements
|
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|
ESRS S2
144 Sustainability statements
|
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|
ESRS S2
Own operationsUpstream value chain
Positive impact Negative impact Risk Opportunity
Pollution from mining may
affect communities’ health
Potential negative impact
Indigenous People’s rights and
livelihoods possibly disrespected
or disrupted by suppliers
Potential negative impact
Increasing local content and
social impact requirements
in tender processes
Risk
Improvement to public
infrastructure improving
living standards
Positive impact
Local communities’ resistance
to and concerns with renewable
energy projects
Risk
Local jobs and educational
opportunities
Positive impact
Consent of Indigenous
communities
Risk
Indigenous People’s rights and
livelihoods disrespected or
disrupted during development
and construction
Negative impact
145 Sustainability statements
|
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|
ESRS S3
146 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S3
147 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S3
148 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S3
149 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S3
150 Sustainability statements
|
SocialØRSTED ANNUAL REPORT 2024
|
ESRS S3
151 Sustainability statements
|
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|
ESRS S3
153 ESRS G1 Business conduct
→
Foundations are one of the largest sources of carbon emissions
in an offshore wind farm’s life cycle. In March 2024, we signed
a memorandum of understanding with German steel producer
Dillinger, securing access to the company’s first production of
lower-emissions heavy plate steel for offshore wind foundations.
In return, we offer our support to accelerate investment in the
plant used to produce it.
152 Sustainability statements
|
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154 Sustainability statements
|
GovernanceØRSTED ANNUAL REPORT 2024
|
ESRS G1
155 Sustainability statements
|
GovernanceØRSTED ANNUAL REPORT 2024
|
ESRS G1
156 Sustainability statements
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|
ESRS G1
Notes
1. Basis of reporting
1.1 Significant changes and events . . . . . . . . . . . . . . . . . . . . . . . . . . 163
1.2 Basis of preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
2. Return on capital employed
2.1 Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
2.2 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
2.3 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
2.4 Government grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
2.5 Research and development expenditures . . . . . . . . . . . . . . . 175
2.6 Other operating income and expenses . . . . . . . . . . . . . . . . . . 176
2.7 Employee costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
2.8 Share-based payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
3. Capital employed
3.1 Intangible assets, and property, plant, and equipment . . 181
3.2 Impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
3.3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
3.4 Contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
3.5 Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
3.6 Supply chain finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
3.7 Other receivables and other payables . . . . . . . . . . . . . . . . . . . 191
3.8 Tax equity liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
3.9 Provisions and contingent liabilities . . . . . . . . . . . . . . . . . . . . . . 193
3.10 Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
4. Tax
4.1 Approach to taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
4.2 Tax on profit (loss) for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
4.3 Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
4.4 Our tax footprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
5. Capital structure
5.1 Interest-bearing net debt and FFO . . . . . . . . . . . . . . . . . . . . . . . 207
5.2 Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
5.3 Hybrid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
5.4 Liquidity reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
5.5 Maturity analysis of financial liabilities . . . . . . . . . . . . . . . . . . 214
5.6 Financial income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 215
6. Risk management
6.1 Risk framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
6.2 Energy price risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
6.3 Inflation and interest rate risks . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
6.4 Currency risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
6.5 Credit risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
6.6 Fair value measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
6.7 Energy trading portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
6.8 Categories of financial instruments . . . . . . . . . . . . . . . . . . . . . . 231
6.9 Sensitivity analysis of financial instruments . . . . . . . . . . . . . 232
7. Other notes
7.1 Related-party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
7.2 Auditor’s fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
7.3 Non-IFRS financial measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
7.4 Company overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Contents
Financial statements
Consolidated financial statements
Consolidated statement of income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Consolidated statement of comprehensive income � � � � � � � � � � � 159
Consolidated statement of financial position � � � � � � � � � � � � � � � � � � 160
Consolidated statement of shareholders’ equity � � � � � � � � � � � � � � 161
Consolidated statement of cash flows � � � � � � � � � � � � � � � � � � � � � � � � � 162
158 Financial statementsØRSTED ANNUAL REPORT 2024
Consolidated statement of income
1 January – 31 December
Note DKKm 2024 2023
2.2, 2.4 Revenue 71,034 79,255
2.3 Cost of sales (35,963 ) (46,624 )
Other external expenses (8,697 ) (7,406 )
2.7, 2.8 Employee costs (6,532 ) (6,374 )
Share of profit (loss) in associates and joint ventures (68 ) (55 )
2.6 Other operating income 5,298 10,329
2.6 Other operating expenses 6,887 (10,408 )
Operating profit (loss) before depreciation, amortisation, and impairment losses (EBITDA) 31,959 18,717
3.1 Amortisation and depreciation on intangible assets, and property, plant, and equipment (10,225 ) (9,795 )
3.1, 3.2 Impairment losses on intangible assets, and property, plant, and equipment (15,563 ) (26,775 )
Operating profit (loss) (EBIT) 6,171 (17,853 )
Gain (loss) on divestment of enterprises (11 ) 234
Share of profit (loss) in associates and joint ventures 37 36
5.6 Financial income 8,590 12,379
5.6 Financial expenses (12,181 ) (13,822 )
Profit (loss) before tax 2,606 (19,026 )
4.2 Tax on profit (loss) for the year (2,590 ) (1,156 )
Profit (loss) for the year 16 (20,182 )
Profit (loss) for the year is attributable to
Shareholders in Ørsted A/S (923 ) (21,059 )
Interests and costs, hybrid capital owners of Ørsted A/S 717 553
Non-controlling interests 222 324
5.2 Earnings per share (DKK) (2.2 ) (50.1 )
5.2 Diluted earnings per share (DKK) (2.2 ) (50.1 )
Consolidated statement of comprehensive income
1 January – 31 December
Note DKKm 2024 2023
Profit (loss) for the year 16 (20,182 )
Other comprehensive income
Cash flow hedging
6 Value adjustments for the year 3,426 25,017
5.2 Value adjustments transferred to income statement (1,269 ) (4,143 )
Exchange rate adjustments
Exchange rate adjustments relating to net investments in foreign enterprises 6,041 548
6.4 Value adjustment of net investment hedges (3,698 ) (328 )
5.2 Value adjustments and hedges transferred to income statement 12 (295 )
Tax
Tax on hedging instruments 276 (4,576 )
Tax on exchange rate adjustments 131 10
Other
Share of other comprehensive income from associated companies, after tax 5 6
Other comprehensive income 4,924 16,239
Total comprehensive income 4,940 (3,943 )
Comprehensive income for the year is attributable to
Shareholders in Ørsted A/S 3,752 (4,837 )
Interest payments and costs, hybrid capital owners of Ørsted A/S 717 553
Non-controlling interests 471 341
Total comprehensive income 4,940 (3,943 )
Other comprehensive income
All items in ‘Other comprehensive income’ may be recycled to the
income statement.
Cash flow hedging
Exchange rate adjustments
159 Financial statementsØRSTED ANNUAL REPORT 2024
Consolidated statement of financial position
31 December
Note
Assets
DKKm 2024 2023
3.1 Intangible assets 2,611 3,426
3.1 Land and buildings 7,977 7,777
3.1 Production assets 138,477 121,643
3.1 Fixtures and fittings, tools, and equipment 2,122 2,042
3.1 Property, plant, and equipment under construction 53,118 48,307
3.1 Property, plant, and equipment 201,694 179,769
Investments in associates and joint ventures 870 960
Receivables from associates and joint ventures 200 77
Other securities and equity investments 344 167
6 Derivatives 960 1,356
4.3 Deferred tax 9,250 8,192
3.7 Other receivables 3,218 3,134
Other non-current assets 14,842 13,886
Non-current assets 219,147 197,081
3.3 Inventories 17,448 10,539
6 Derivatives 4,617 10,473
3.4 Contract assets 324 802
3.5 Trade receivables 9,045 11,107
3.7 Other receivables 9,936 10,530
Receivables from associates and joint ventures 41 74
Income tax 570 483
5.4 Securities 14,532 29,902
5.4 Cash 23,126 10,145
Current assets 79,639 84,055
Assets 298,786 281,136
Note
Equity and liabilities
DKKm 2024 2023
5.2 Share capital 4,204 4,204
5.2 Reserves (5,164 ) (10,251 )
Retained earnings 63,098 62,829
5.2 Equity attributable to shareholders in Ørsted A/S 62,138 56,782
5.3 Hybrid capital 20,955 19,103
3.10 Non-controlling interests 10,391 1,906
Equity 93,484 77,791
4.3 Deferred tax 2,433 3,439
3.9 Provisions 17,735 16,908
5.5 Lease liabilities 8,076 7,618
5.1 Bond and bank debt 83,607 79,236
6 Derivatives 8,882 13,763
3.4 Contract liabilities 8,834 3,297
3.8 Tax equity liabilities 16,158 13,610
3.7 Other payables 5,825 6,273
Non-current liabilities 151,550 144,144
3.9 Provisions 2,800 15,955
5.5 Lease liabilities 834 808
5.1 Bond and bank debt 4,101 384
6 Derivatives 7,009 8,449
3.4 Contract liabilities 2,578 2,785
Trade payables 20,827 14,915
3.8 Tax equity liabilities 4,320 3,397
3.7 Other payables 7,106 6,225
Income tax 4,177 6,283
Current liabilities 53,752 59,201
Liabilities 205,302 203,345
Equity and liabilities 298,786 281,136
160 Financial statementsØRSTED ANNUAL REPORT 2024
Consolidated statement of shareholders’ equity
1 January – 31 December
DKKm
2024 2023
Share
capital Reserves
1
Retained
earnings
Proposed
dividends
Shareholders
in Ørsted A/S
Hybrid
capital
Non-
controlling
interests
To t a l
Group
Share
capital Reserves
1
Retained
earnings
Proposed
dividends
Shareholders
in Ørsted A/S
Hybrid
capital
Non-
controlling
interests
To t a l
Group
Equity at 1 January 4,204 (10,251 ) 62,829 - 56,782 19,103 1,906 77,791 4,204 (26,467 ) 88,331 5,675 71,743 19,793 3,996 95,532
Comprehensive income for the year:
Profit (loss) for the year - - (923 ) - (923 ) 717 222 16 - - (21,059 ) - (21,059 ) 553 324 (20,182 )
Other comprehensive income:
Cash flow hedging - 2,129 - - 2,129 - 28 2,157 - 20,874 - - 20,874 - - 20,874
Exchange rate adjustments - 2,181 - - 2,181 - 174 2,355 - (92 ) - - (92 ) - 17 (75 )
Tax on other comprehensive income - 360 - - 360 - 47 407 - (4,566 ) - - (4,566 ) - - (4,566 )
Share of other comprehensive income of
associated companies, after tax - - 5 - 5 - - 5 - - 6 - 6 - - 6
Total comprehensive income - 4,670 (918 ) - 3,752 717 471 4,940 - 16,216 (21,053 ) - (4,837 ) 553 341 (3,943 )
Cash flow hedging of property, plant, and
equipment under construction - (181 ) - - (181 ) - - (181 ) - - - - - - - -
Coupon payments, hybrid capital - - - - - (687 ) - (687 ) - - - - - (546 ) - (546 )
Ta x - 40 - - 40 9 - 49 - - - - - 2 - 2
Additions, hybrid capital - - - - - 5,520 - 5,520 - - - - - - - -
Disposals, hybrid capital - - - - - (3,707 ) - (3,707 ) - - - - - (699 ) - (699 )
Dividends paid - - - - - - (369 ) (369 ) - - 2 (5,675 ) (5,673 ) - (413 ) (6,086 )
Additions, non-controlling interests - 558 1,143 - 1,701 - 8,383 10,084 - - - - - - 537 537
Disposals, non-controlling interests - - - - - - - - - - (4,477 ) - (4,477 ) - (2,555 ) (7,032 )
Other changes - - 44 - 44 - - 44 - - 26 - 26 - - 26
Equity at 31 December 4,204 (5,164 ) 63,098 - 62,138 20,955 10,391 93,484 4,204 (10,251 ) 62,829 - 56,782 19,103 1,906 77,791
161 Financial statementsØRSTED ANNUAL REPORT 2024
Consolidated statement of cash flows
1 January – 31 December
Note DKKm 2024 2023
Operating profit (loss) before depreciation, amortisation, and
impairment losses (EBITDA) 31,959 18,717
Reversal of gain (loss) on divestment of assets (349 ) (5,745 )
Change in derivatives 648 4,274
Change in provisions (13,057 ) 8,454
Other items (129 ) 287
Change in inventories (6,534 ) 3,656
Change in contract assets and liabilities 6,154 461
Change in trade receivables 2,142 1,522
Change in other receivables 1,008 3,834
Change in trade payables 2,821 (5,309 )
Change in tax equity liabilities 1,458 374
Change in other payables (964 ) (660 )
Interest received and similar items 6,820 8,278
Interest paid and similar items (7,294 ) (6,894 )
4.4 Income tax paid (6,327 ) (2,717 )
Cash flows from operating activities 18,356 28,532
Purchase of intangible assets, and property, plant, and
equipment (42,654 ) (38,203 )
Sale of intangible assets, and property, plant, and equipment 4,471 8,189
Divestment of enterprises 942 (3 )
Purchase of other equity investments (163 ) (124 )
Purchase of securities (11,588 ) (18,285 )
Sale/maturation of securities 27,318 13,935
Change in other non-current assets (134 ) (13 )
Transactions with associates and joint ventures 22 (247 )
Dividends received and capital reductions 27 19
Cash flows from investing activities (21,759 ) (34,732 )
Note DKKm 2024 2023
Proceeds from raising loans 9,990 17,584
Instalments on loans (3,407 ) (1,580 )
Instalments on leases (736 ) (712 )
Coupon payments on hybrid capital (687 ) (546 )
Repurchase of hybrid capital (3,707 ) (699 )
Proceeds from issuance of hybrid capital 5,520 -
Dividends paid to shareholders in Ørsted A/S - (5,673 )
3.10 Transactions with non-controlling interests 9,863 (7,061 )
Net proceeds from tax equity partners 78 (182 )
Collateral posted in relation to trading of derivatives (13,400 ) (21,829 )
Collateral released in relation to trading of derivatives 12,166 19,515
Restricted cash and other changes 163 1,448
Cash flows from financing activities 15,843 265
Total net change in cash and cash equivalents 12,440 (5,935 )
5.4 Cash and cash equivalents at 1 January 10,144 16,175
Total net change in cash and cash equivalents 12,440 (5,935 )
Exchange rate adjustments of cash and cash equivalents 540 (96 )
5.4 Cash and cash equivalents at 31 December 23,124 10,144
Supplementary statements
Our supplementary statements of gross and net investment appear from note 3.0 ‘Capital employed’
and free cash flows (FCF) from note 2.1 ‘Segment information’.
§ Accounting policies
162 Financial statementsØRSTED ANNUAL REPORT 2024
Basis of reporting
Note 1
For a detailed discussion on Ørsted’s performance and financial position, please refer to the ‘Management’s review’.
1
As these divestments are with non- controlling interests, it is not included in 'Cash flow from investing activities' but as 'Cash flow from financing activities' in our statement of cash flows.
Impairments
During 2024, we have recognised a net
impairment loss of DKK 15.6 billion.
The main contributors to the net
impairment loss were construction
delay and higher expected costs due to
higher risk assessments for Sunrise Wind
(DKK 4.3 billion) and Revolution Wind
(DKK 3.8 billion), lower valuation of
our seabed leases (DKK 4.1 billion), an
increase in the US long-dated interest
rate (DKK 2.7 billion) across our US
portfolio, and our decision to cease
execution of FlagshipONE (DKK 1.5
billion). This was partly offset by a
reversal on our Sunrise Wind project
(DKK 1.8 billion) due to its award of a
higher OREC by the State of New York.
See note 3.2 ‘Impairments’.
Onerous contracts and
cancellation fees
Onerous contracts for FlagshipONE
In Q2 2024, we decided to cease execution
of FlagshipONE and deprioritise our
immediate efforts within the liquids e-fuel
market. In addition to the impairment
loss recognised on FlagshipONE, we have
recognised a provision relating to the
expected contract cancellation fees not
already covered by the impairment loss.
The remaining provision was DKK 0.3
billion at the end of 2024.
See note 3.9 ‘Provisions and contingent
liabilities’.
Onerous contracts for Ocean Wind 1
At the end of 2023, we recognised a
provision of DKK 15.0 billion related to
contract cancellation fees for Ocean
Wind 1. During 2024, we have finalised
negotiation of several supplier contracts
with a better outcome than assumed,
leading to a partly reversal through
EBITDA. In combination with payments
and other adjustments, the remaining
provision for ‘Onerous contracts’ has been
reduced to DKK 1.6 billion at the end
of 2024.
See note 3.9 ‘Provisions and contingent
liabilities’.
Divestments and acquisitions
Divestments
Four operational onshore assets
1
In June, we completed the partial divest-
ment of an 80 % stake in four operational
onshore wind assets in the US. The trans-
action resulted in proceeds of DKK 2 billion.
See note 3.10 ‘Non-controlling interests’.
Ostwind France
In May, we completed the divestment
of our Ostwind France onshore business.
Thetransaction resulted in proceeds of
DKK 1 billion.
See note 3.1 ‘Intangible assets, and
property, plant and equipments’.
Mockingbird
In November, we completed the divest-
ment of a 50 % ownership stake of
our solar farm Mockingbird in the US.
The transaction resulted in proceeds
of DKK 1.1 billion.
See note 2.6 ‘Other operating income and
expenses’ and note 3.1 ‘Intangible assets,
and property, plant and equipments’.
Greater Changhua 4
In December, we completed the farm-
down of a 50 % ownership stake of our
offshore wind farm Greater Changhua 4
in Taiwan. The transaction resulted in
proceeds of DKK 3.8 billion in 2024.
As part of the divestment, we also
entered into a construction agreement
with the partner.
See note 2.6 ‘Other operating income and
expenses’ and note 3.1 ‘Intangible assets,
and property, plant and equipments’.
Four operational offshore assets
1
In December, we completed the partial
divestment of an 12.45 % minority stake
in four operational offshore wind assets
in the UK.
The transaction resulted in total
proceeds of DKK 14.5 billion, split on a
divestment cash flow of DKK 8.3 billion
and prepayments included in cash flow
from operations (CFO) of DKK 6.2 billion.
As it is a transaction with non-controlling
interests (NCI), no gain (loss) have been
included in profit (loss) for the year.
See note 3.10 ‘Non-controlling interests’.
Acquisitions
Sunrise Wind
In July, we completed the acquisition of
Eversource’s 50 % interest in Sunrise Wind,
which was owned jointly by Ørsted and
Eversource.
See note 3.1 ‘ Intangible assets, and
property, plant, and equipment’.
Significant changes and events
Note 1.1
The financial position and performance of Ørsted was particularly
affected by the following events and transactions during 2024.
Financial statements | Notes163 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes164 ØRSTED ANNUAL REPORT 2024
iXBRL reporting
We are required to file our annual report in the
European Single Electronic Format (‘ESEF’) using
the XHTML format and to tag the consolidated
financial statements, including notes, using the Inline
eXtensible Business Reporting Language (iXBRL).
TheiXBRL tags comply with the ESEF taxonomy.
Where a financial statement line item is not defined
in the ESEF taxonomy, an extension to the taxonomy
has been created.
The annual report submitted to the Danish Financial
Supervisory Authority consists of the XHTML
document together with certain technical files, all
included in a ZIP file named Orsted-2024-12-31-en.zip.
Non-IFRS financial measures
We present financial measures in the consolidated
financial statements to describe the Group’s finan-
cial performance, financial position, and cash flows.
We use these financial measures as we believe they
provide valuable information to our stakeholders
and management.
The financial measures should not be considered a
replacement for the performance measures as defined
under IFRS, but rather as supplementary information.
The financial measures may not be comparable to
similar titled measures presented by other companies,
as the definitions and calculations may be different.
The financial measures most commonly presented
in the Ørsted annual report are:
· EBITDA and EBITDA excluding new partnerships
and cancellation fees
· funds from operations (FFO)
· FFO/adjusted interest-bearing net debt
· interest-bearing net debt (NIBD)
· adjusted interest-bearing net debt
· free cash flow (FCF)
· return on capital employed ( ROCE)
· capital employed
· g ross investments
· net investments.
Our definitions of the financial measures are included
in note 7.3 ‘Non-IFRS financial measures’.
Basis of preparation
Note 1.2 – continued
Financial statements | Notes165 ØRSTED ANNUAL REPORT 2024
Basis of preparation
Note 1.2 – continued
Financial statements | Notes166 ØRSTED ANNUAL REPORT 2024
Return on capital employed (ROCE) is a key ratio,
showing how profitable our business activities are.
Our target is an average ROCE of approx. 13 % for
the Group for the 2024-2030 period.
ROCE was 4.5 % in 2024. Adjusted for impairment
losses and cancellation fees, ROCE amounted to
10.1 % in 2024.
See note 2.1 ‘Segment information’.
Return on
capital employed
Note 2
Return on capital employed
%
Return on capital employed was
4.5 % in 2024 against -14.2 % in 2023.
EBITDA and EBIT
DKKbn
-14.2
14.8
8.3
4.5
16.8
EBITDA 32�0
EBIT 6�2
EBIT
DKKm
Impairment losses DKK -15,563 million Remaining EBIT DKK 14,399 millionCancellation fees DKK 7,335 million
EBIT of DKK 6,171 million in 2024
4.5 %
32.1
18.7
-17.9
24.3
16.6
2023
2022
2021
2020
2024
19.8
16.2
9.0
20242020 20222021 2023
Financial statements | Notes167 ØRSTED ANNUAL REPORT 2024
Revenue
DKKm 2024 (2023)
Total 71,034 (79,255)
GB
TW
DE
Other
DK
US
NL
IR
32,468 (45,694)
2,555 (4,093)
541 (659)
2,958 (2,192)
17,108 (17,149)
3,079 (1,042)
11,534 (7,516)
791 (910)
Revenue, intangible assets, and property, plant, and equipment
are presented based on the locations of our customers and
assets as well as the exchanges on which we trade.
Intangible assets and property, plant, and equipment
DKKm 2024 (2023)
Total 204,305 (183,195)
77,474 (69,144)US
11,749 (11,137)DK
0 (1,594)FR
33,175 (28,755)TW
3,978 (4,335)NL
45,450 (43,747)GB
4,693 (4,451)IR
87 (739)Other
23,465 (16,996)DE
4,234 (2,297)PL
Financial statements | Notes168 ØRSTED ANNUAL REPORT 2024
Segment information
Note 2.1 – continued
Financial statements | Notes169 ØRSTED ANNUAL REPORT 2024
Segment information
Note 2.1 – continued
Financial statements | Notes170 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes171 ØRSTED ANNUAL REPORT 2024
Revenue
Note 2.2 – continued
Financial statements | Notes172 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes173 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes174 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes175 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes176 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes177 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes178 ØRSTED ANNUAL REPORT 2024
Share-based payment
Note 2.8 – continued
Financial statements | Notes179 ØRSTED ANNUAL REPORT 2024
Our capital employed primarily relates to production
assets, including assets under construction.
We monitor investment projects closely, as a large
part of our value is created in the development and
construction phases.
Capital employed by segment
1
% 2024
Offshore 70 %
Gross investments by segment
2
% 2024
Offshore 78 %
Onshore 26 %
Onshore 17 %
Bioenergy & Other 4 %
Bioenergy & Other 5 %
Capital employed
DKKm 2024 2023
Intangible assets, and property, plant, and equipment 204,305 183,195
Equity investments and non-current receivables 1,395 1,172
Net working capital, capital expenditures (7,454) (4,542)
Net working capital, work in progress
3
5,798 1,705
Net working capital, tax equity (18,714) (15,811)
Net working capital, other items (691) 7,794
Derivatives, net (10,314) (10,383)
Decommissioning obligations (13,844) (12,977)
Other provisions (6,691) (19,886)
Tax, net 3,210 (1,047)
Other receivables and other payables, net (5,489) (4,050)
Total capital employed 151,511 125,170
Gross and net investments
DKKm 2024 2023
Cash flows from investing activities (21,759) (34,732)
Dividends received and capital reductions reversed (27) (19)
Purchase and sale of securities, reversed (15,730) 4,350
Loans to associates and joint ventures, reversed 121 78
Sale of non-current assets, reversed (5,413) (8,186)
Gross investments (42,808) (38,509)
Transactions with non-controlling
interests in connection with divestments and
acquisitions 10,267 (6,644)
Sale of non-current assets 5,413 8,186
Divestments 15,680 1,542
Net investments (27,128) (36,967)
Capital employed
Note 3
1
Capital employed by segment is based on capital employed for
reportable segments of DKK 148,721 million.
2
Gross investments by segment is based on gross investments for
reportable segments of DKK 42,664 million.
3
‘Net working capital, work in progress’ consists of inventories related
to transmission assets, construction agreements, and construction
management agreements in connection with the construction of
transmission assets and offshore wind farms for partners as well as
related trade payables.
Financial statements | Notes180 ØRSTED ANNUAL REPORT 2024
Production assets by segment
% 2024
DKK 138,477 million
Offshore Onshore Bioenergy
& Other
58 %
38 %
4 %
Property, plant, and equipment
under construction by segment
% 2024
DKK 53,118 million
Offshore Onshore Bioenergy
& Other
80 %
14 %
6 %
Financial statements | Notes181 ØRSTED ANNUAL REPORT 2024
Intangible assets, and property, plant, and equipment
Note 3.1 – continued
Production assets by segment
% 2023
DKK 121,643 million
Offshore Onshore Bioenergy
& Other
61 %
34 %
5 %
Property, plant, and equipment
under construction by segment
% 2023
DKK 48,307 million
Offshore Onshore Bioenergy
& Other
67 %
31 %
2 %
Financial statements | Notes182 ØRSTED ANNUAL REPORT 2024
Intangible assets, and property, plant, and equipment
Note 3.1 – continued
Financial statements | Notes183 ØRSTED ANNUAL REPORT 2024
Intangible assets, and property, plant, and equipment
Note 3.1 – continued
Financial statements | Notes184 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes185 ØRSTED ANNUAL REPORT 2024
Impairments
Note 3.2 – continued
Financial statements | Notes186 ØRSTED ANNUAL REPORT 2024
Impairments
Note 3.2 – continued
Financial statements | Notes187 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes188 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes189 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes190 ØRSTED ANNUAL REPORT 2024
Other receivables and other payables
Note 3.7
Financial statements | Notes191 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes192 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes193 ØRSTED ANNUAL REPORT 2024
Provisions and contingent liabilities
Note 3.9 – continued
Financial statements | Notes194 ØRSTED ANNUAL REPORT 2024
Provisions and contingent liabilities
Note 3.9 – continued
Financial statements | Notes195 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes196 ØRSTED ANNUAL REPORT 2024
2024
DKKm
Profit (loss)
before tax Ta x Tax in %
Tax equity, deferred tax liability - (1,013) n.a.
Gain (loss) on divestment of enterprises and assets (88) 310 352 %
Impairment for the year (15,563) 1,895 12 %
Cancellation fees 7,335 - 0 %
Other adjustments - (1,113) n.a.
Remaining business 10,922 (2,669) 24 %
Effective tax for the year 2,606 (2,590) 99 %
‘Other adjustments’ include changes in tax rates, movements in uncertain tax positions, tax concerning previous years, and
unrecognised tax losses. See more regarding Impairments in note 3.2 ‘Impairments’.
The Group’s taxes reflect our business operations
and applicable tax legislation in the countries where
we operate.
Tax
Note 4
Development in current and deferred tax asset
and liabilities (tax, net), 2023-2024
DKKm
Tax , net
Tax on profit (loss) for the year
Tax on other comprehensive income
Corporate taxes paid
Other effects
Corporate income tax paid by
segment, 2024
DKKm
Offshore
Onshore
Bioenergy & Other
Ørsted A/S and other activities
Total
(1,047)
3,210
6,327
407(2,590)
113
4,802
790
707
28
6,327
6.3 bn
Corporate income tax paid by the
Group in 2024 totalled DKK 6,327 mil-
lion against DKK 2,717 million in 2023.
6.0 bn
Current corporate income tax in 2024
totalled DKK 5,990 million against
DKK 2,876 million in 2023.
99 %
Effective tax rate for the Group for
2024 was 99 % against -6 % in 2023.
Financial statements | Notes197 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes198 ØRSTED ANNUAL REPORT 2024
Approach to taxes
Note 4.1 – continued
Financial statements | Notes199 ØRSTED ANNUAL REPORT 2024
Approach to taxes
Note 4.1 – continued
Hornsea 1 and Walney
Extension tax audit timeline
2016 2017 2019 202220212015
2018
2020 2023
EU
arbitration
start
Final assessment
from Danish
Tax Age ncy
Mutual agreement
procedures
initiation (MAP)
Appeal to the
Danish National
Tax Tribunal
Advance pricing
agreement (APA)
application
Danish Tax
Agency
terminates
APA and
initiates
transfer
pricing
audit
2024 2025
Expected
decision
by the
arbitration
panel
Financial statements | Notes200 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes201 ØRSTED ANNUAL REPORT 2024
Tax on profit (loss) for the year
Note 4.2 – continued
Financial statements | Notes202 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes203 ØRSTED ANNUAL REPORT 2024
Deferred tax
Note 4.3 – continued
Financial statements | Notes204 ØRSTED ANNUAL REPORT 2024
Payments, corporate taxes
DKKm
Current year
Previous years
DK
3,451
MY
51
GB
1,571
TW
428
PL
25
DE NL FR Other
421
289
33
1
Total
6,327
As our business matures, we start to incur corporate taxes in the countries where we operate.
IE
57
Financial statements | Notes205 ØRSTED ANNUAL REPORT 2024
Equity and interest-bearing net debt
DKKbn
Interest-bearing asset
Interest-bearing debt
Hybrid capital
Equity attributable to shareholders in Ørsted A/S
Non-controlling interests
2024 43.8 / 101.8 / 21.0 / 61.9 / 10.4 151.3 billion
2023 45.2 / 92.6 / 19.1 / 56.8 / 1.9 125.2 billion
13.2 %
Funds from operations (FFO) relative
to adjusted interest-bearing net debt
amounted to 13.2 % at 31 December 2024
against 28.6 % at 31 December 2023.
58.0 bn
Our interest-bearing net debt totalled DKK
58,027 million at 31 December 2024 against
DKK 47,379 million at 31 December 2023.
78.0 bn
Our liquidity reserve totalled DKK 77,991
million at 31 December 2024 against
DKK 90,665 million at 31 December 2023.
Financial statements | Notes206 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes207 ØRSTED ANNUAL REPORT 2024
Interest-bearing net debt and FFO
Note 5.1 – continued
Financial statements | Notes208 ØRSTED ANNUAL REPORT 2024
Interest-bearing net debt and FFO
Note 5.1 – continued
Maturity profile of issued senior bonds and bank debt
DKK billion
Issued bonds Bank debt
2028
5.4
2026
10.1
2030 2031 2032 2033 2034 2035+
6.7
6.9 6.9
8.4
8.1
17. 5
2025
4.3
2029
9.7
2027
4.2
Financial statements | Notes209 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes210 ØRSTED ANNUAL REPORT 2024
Equity
Note 5.2 – continued
Financial statements | Notes211 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes212 ØRSTED ANNUAL REPORT 2024
Liquidity reserve, DKKbn
Cash Securities, available
Undrawn, non-cancellable credit facilities
Dec. 2024
Dec. 2023
78.0
90.7
Financial statements | Notes213 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes214 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes215 ØRSTED ANNUAL REPORT 2024
Revenue composition of offshore and onshore assets 2025-2030
15 %
Merchant revenue
35 %
Fixed nominal revenue
50 %
Inflation-indexed revenue
For the period 2025-2030, approximately 85 % of our expected revenue from our wind, solar PV, and battery storage
assets are fixed-price inflation- indexed or fixed nominal. The remaining 15 % are exposed to fluctuations in power prices.
Energy exposure 2025-2027
2
DKKbn
Before hedging After hedging
Outright
power
33.3
16.5
-1.6 -1.0
Gas
and oil
5.4
4.8
Spread
(power)
2
Energy exposure before hedging does not include revenue
from inflation-indexed and fixed nominal prices as these
do not contain any energy exposure.
Currency exposure 2025-2029
1
DKKbn
Before hedging After hedging
1
In 2024, our currency exposure and hedges have been updated
with our latest view of the expected proceeds from and timing
of our divestment programme. For USD and NTD, we manage
our risk to a natural time spread between front-end capital
expenditures relating to construction projects and long-term
revenue. In the five year horizon, we are therefore seeing that
our hedges increase our net exposure, but our hedges reduce
the risk in the longer horizon.
We deem EUR to constitute an insignificant risk as we expect
Denmark to maintain its fixed exchange-rate policy.
GBP
75.9
19.1
15.1
-8.4
USD
19.0
17.9
NTD
~ 50 % inflation-
indexed revenue
~50 % of our revenue from offshore and
onshore assets are fixed price-indexed to
inflation, mainly from ROC and CfD subsidies
in the UK and Poland (2023: ~45 %).
~ 35 % fixed
nominal revenue
~35 % of our revenue from offshore and
onshore assets are fixed in nominal terms,
mainly from fixed-price subsidies and CPPAs
in Continental Europe, Taiwan, and the
US as well as hedges swapping inflation-
indexed cash flows to fixed cash flows
(2023: ~35 %).
~ 15 % merchant
revenue
~15 % of our revenue from offshore and
onshore assets are exposed to merchant
power prices (2023: ~20 %).
DKK -7.6 billion
The value of our hedging instruments
(mainly inflation and power) impacting
EBITDA in the future amounts to a loss of
DKK 7.6 billion at 31 December 2024
(2023: DKK 9.9 billion).
Financial statements | Notes216 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes217 ØRSTED ANNUAL REPORT 2024
0
1,000
2,000
3,000
4,000
2022 2023 2024 2025
Forward ratesHistorical rates
2026
The graph shows the historic development in monthly average spot power prices for
the past three years and the forward rates for 2025 and 2026 as of 31 December 2024.
The graph covers our main markets where we are exposed to power prices.
1
Average of DK1 and DK2.
2
Average of north and west.
Development in power prices, DKK/MWh
DK
1
UK US (ERCOT)
2
Composition of revenue from generation of power in Offshore and Onshore
Fixed-price subsidy
Guaranteed minimum price with potential upside
As generated CPPAs
Fixed-volume hedges
Merchant exposure (after hedges)
2025
The graph shows the split of the expected revenue from generation of power in Offshore
and Onshore in 2025. The revenue from inflation-indexed or fixed nominal (covered by
the three darkests blue components in the graph) is 80 %, compared to the 85 % from
inflation-indexed or fixed nominal from 2025-2030 shown in section 6.0.
53 % 13 % 14 % 9 % 11 %
Financial statements | Notes218 ØRSTED ANNUAL REPORT 2024
Energy price risks
Note 6.2 – continued
The graph shows our power exposure towards power prices in different
markets before hedges for the period 2025-2027.
Power price exposure before hedging
for 2025-2027, split on markets
DKKbn
The UK 16.5
The US 7.1
Other 9.7
Financial statements | Notes219 ØRSTED ANNUAL REPORT 2024
Energy price risks
Note 6.2 – continued
Financial statements | Notes220 ØRSTED ANNUAL REPORT 2024
-2
0
2
4
6
8
10
12
2022 2023 2024
Inflation-indexed revenue in 2025-2030 is partly offset
by inflation-indexed operational costs
Inflation-indexed
revenue and hedges
Operational costs
1
~50 % matched
1
Operational costs are comprised of OPEX, COGS, and DEVEX after
deduction of income from PTCs and ITCs.
Development in inflation and interest rates
%
USD 10-year interest rate EUR 10-year interest rate UK CPI annual rate
NTD 10-year interest rate GBP 10-year interest rate
The graph shows the historic development in interest and inflation rates for the past three years.
The graph covers our main markets where we are exposed to interest and inflation.
Financial statements | Notes221 ØRSTED ANNUAL REPORT 2024
Inflation and interest rate risks
Note 6.3 – continued
Fixed-rate debt and hedges used to protect fixed
nominal cash flows against interest rate increases
Fixed-rate debt and hedges
Assets in operation and under construction
1
~55 %
matched
For assets in operation and under construction, approximately 55 % of the fixed nominal
cash flows are matched with a fixed interest rate on our debt and hedge portfolio.
1
Lifetime present value of fixed nominal cash flows, excluding CAPEX. Assets under
construction include the Hornsea 3, Borkum Riffgrund 3, Revolution Wind, Sunrise
Wind, and Greater Changhua 2b and 4 offshore wind farms.
Financial statements | Notes222 ØRSTED ANNUAL REPORT 2024
Inflation and interest rate risks
Note 6.3 – continued
Financial statements | Notes223 ØRSTED ANNUAL REPORT 2024
500
600
700
800
900
1,000
20
21
22
23
24
25
2022 2023 2024 2025
Forward ratesHistorical rates
2026
GBP exposures
1
DKKbn
Before hedging After hedging
Development in currency rates
2
GBP/DKK USD/DKK NTD/DKK
2025
26.8
1.0
2027
2.3
-11.7
2026
9.3
-1.1
2028
12.6
7.2
2029
25.0
23.7
1
The graph shows our GBP exposure before and after hedges from divestments and investments,
green certificates, and hedged energy.
2
The graph shows the historic development in spot currency rates for the past three years and
the forward rates for 2025 and 2026 as of 31 December 2024.
Financial statements | Notes224 ØRSTED ANNUAL REPORT 2024
Currency risks
Note 6.4 – continued
Financial statements | Notes225 ØRSTED ANNUAL REPORT 2024
Currency risks
Note 6.4 – continued
Financial statements | Notes226 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes227 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes228 ØRSTED ANNUAL REPORT 2024
Fair value measurement
Note 6.6 – continued
Financial statements | Notes229 ØRSTED ANNUAL REPORT 2024
0
20
40
60
80
100
2023 2024
120
Daily positions in the trading portfolio, market trading mandates
DKKm
Value at risk (VaR) Board of Directors’ mandate
Financial statements | Notes230 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes231 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes232 ØRSTED ANNUAL REPORT 2024
Other notes
Note 7
Financial statements | Notes233 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes234 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes235 ØRSTED ANNUAL REPORT 2024
Non-IFRS financial measures
Note 7.3 – continued
Financial statements | Notes236 ØRSTED ANNUAL REPORT 2024
Financial statements | Notes237 ØRSTED ANNUAL REPORT 2024
Parent company
financial statements
239 Income statement
239 Statement of financial position
240 Statement of changes in equity
241 Notes
1 Basis of reporting
2 Employee costs
3 Financial income and expenses
4 Tax on profit (loss) for the year and deferred tax
5 Property, plant, and equipment
6 Investments in subsidiaries
7 Receivables from subsidiaries
8 Derivatives
9 Securities
10 Loans and borrowings
11 Other provisions
12 Related-party transactions
13 Contingent liabilities
14 Auditor’s fees
15 Ownership information
→
Offshore wind workers in Barrow-in-Furness, the UK, board a
boat bound for Walney Extension. A 12.45 % stake in this wind
farm and in Hornsea 1, Hornsea 2, and Burbo Bank Extension,
has been divested to Brookfield. This marks significant progress
in our farm-down programme announced in February 2024,
unlocking capital while ensuring a high level of value retention.
Financial statements | Parent company financial statements 238 ØRSTED ANNUAL REPORT 2024
Income statement
1 January – 31 December
Statement of financial position
31 December
Note
Income statement
DKKm 2024 2023
Revenue 311 259
2 Employee costs (52) (59)
External expenses (282) (172)
Operating profit (loss) before depreciation,
amortisation, and impaiment losses (EBITDA) (23) 28
Amortisation, depreciation, and impairment losses
on property, plant, and equipment (110) (113)
Operating profit (loss) (EBIT) (133) (85)
Gain (loss) on divestment of enterprises (66) 791
3 Financial income 21,300 21,262
3 Financial expenses (17,505) (15,114)
Profit (loss) before tax 3,596 6,854
4 Tax on profit (loss) for the year (318) (1,240)
Profit (loss) for the year 3,278 5,614
Profit (loss) for the year is attributable to
Shareholders in Ørsted A/S, proposed dividends for
the financial year - -
Shareholders in Ørsted A/S, retained earnings 2,561 5,061
Interest and costs, hybrid capital owners of
Ørsted A/S 717 553
Profit (loss) for the year 3,278 5,614
Note
Assets
DKKm 2024 2023
5 Land and buildings 459 569
5 Property, plant, and equipment 459 569
6 Investments in subsidiaries 100,813 50,864
7 Receivables from subsidiaries 124,228 194,064
4 Deferred tax 579 246
Other receivables 13 13
Financial assets 225,633 245,187
Non-current assets 226,092 245,756
Receivables from subsidiaries 23,064 42,635
8 Derivatives 6,600 5,092
Other receivables 5,176 4,379
Income tax 1,352 -
Receivables 36,192 52,106
9 Securities 14,140 29,514
Cash 1,318 4,324
Current assets 51,650 85,944
Assets 277,742 331,700
Note
Equity and liabilities
DKKm 2024 2023
Share capital 4,204 4,204
Reserves 622 414
Retained earnings 54,161 51,597
Proposed dividends - -
Equity attributable to shareholders in Ørsted A/S 58,987 56,215
10 Hybrid capital 20,955 19,103
Equity 79,942 75,318
11 Other provisions 1,808 1,771
10 Lease liabilities 396 514
10 Bond and bank debt 73,641 69,695
Non-current liabilities 75,845 71,980
11 Other provisions - 8
Lease liabilities 118 115
Bond and bank debt 7,141 1,281
8 Derivatives 7,260 4,781
Trade payables 50 107
Payables to subsidiaries 105,703 175,457
Other payables 1,683 1,887
Income tax - 766
Current liabilities 121,955 184,402
Liabilities 197,800 256,382
Equity and liabilities 277,742 331,700
Financial statements | Parent company financial statements 239 ØRSTED ANNUAL REPORT 2024
Statement of changes in equity
1 January – 31 December
Statement of changes in equity
DKKm Share capital
Hedging
reserve
Retained
earnings
Proposed
dividends
Shareholders
in Ørsted A/S Hybrid capital Tota l
Equity at 1 January 2024 4,204 414 51,597 - 56,215 19,103 75,318
Profit (loss) for the year - - 2,561 - 2,561 717 3,278
Dividends paid - - - - - - -
Value adjustments of hedging instruments - 293 - - 293 - 293
Value adjustments transferred to financial income and expenses - (25) - - (25) - (25)
Tax on changes in equity - (60) - - (60) 9 (51)
Coupon payments, hybrid capital - - - - - (687) (687)
Additions, hybrid capital - - - - - 5,520 5,520
Disposals, hybrid capital - - - - - (3,707) (3,707)
Share-based payments - - 3 - 3 - 3
Changes in equity in 2024 - 208 2,564 - 2,772 1,852 4,624
Equity at 31 December 2024 4,204 622 54,161 - 58,987 20,955 79,942
Equity at 1 January 2023 4,204 2,130 46,530 5,675 58,539 19,793 78,332
Profit (loss) for the year - - 5,061 - 5,061 553 5,614
Dividends paid - - 2 (5,675) (5,673) - (5,673)
Value adjustments of hedging instruments - 108 - - 108 - 108
Value adjustments transferred to financial income and expenses - (2,308) - - (2,308) - (2,308)
Tax on changes in equity - 484 - - 484 2 486
Coupon payments, hybrid capital - - - - - (546) (546)
Disposals, hybrid capital - - - - - (699) (699)
Share-based payments - - 4 - 4 - 4
Changes in equity in 2023 - (1,716) 5,067 (5,675) (2,324) (690) (3,014)
Equity at 31 December 2023 4,204 414 51,597 - 56,215 19,103 75,318
Financial statements | Parent company financial statements 240 ØRSTED ANNUAL REPORT 2024
Key accounting estimate
In connection with the preparation of the
financial statements, a number of accounting
estimates have been made that affect the
profit (loss) and balance sheet. Estimates are
regularly reassessed by the management on
the basis of historical experience and other
relevant factors.
Impairment test
If there is any indication that the carrying
amount is lower than our future earnings
in a company, we test for impairment as
described in the consolidated financial state-
ments. The future earnings of the company
(recoverable amount) are calculated based on
assumptions concerning significant estimates.
Basis of reporting
Note 1
Accounting policies
The parent company financial statements have been
prepared in accordance with the provisions of the
Danish Financial Statements Act (‘Årsregnskabsloven’)
(reporting class D).
The accounting policies remain unchanged from the
previous year.
Unless otherwise stated, the financial statements
are presented in Danish kroner (DKK).
The parent company accounting policies are con-
sistent with the accounting policies described for
the consolidated financial statements, with the
following exceptions.
Foreign currency translation
We recognise exchange rate adjustments of
receivables from and payables to subsidiaries as
financial income and expenses in the income state-
ment when the balances are accounted for as part
of the total net investment in foreign enterprises.
Likewise, we recognise foreign exchange gains and
losses on loans and derivatives in the income state-
ment as financial income and expenses when they
have been entered into hedge net investment in the
foreign enterprises.
Revenue
Rental income comprises income from commercial
leases and is recognised over the term of the lease.
Income from services is recognised when delivery has
taken place.
Dividends from investments
Dividends from subsidiaries and associates are
recognised in the income statement for the financial
year in which the dividends are approved at the annual
general meeting. If the dividends exceed the total
income after acquisition, the dividends are recognised as
a reduction of the cost of the investment under assets.
Investments
We measure our investments in subsidiaries and
associates at cost. If there is any indication that the
value of a company is lower than our future earnings
in the company, impairment testing of the company is
carried out as described in the consolidated financial
statements. The carrying amount is written down
to the recoverable amount whenever the carrying
amount exceeds the future earnings in the company
(recoverable amount).
If we have a legal or constructive obligation to cover
a deficit in subsidiaries and associates, we recognise
a provision for this.
Tax
Ørsted A/S is taxed jointly with its Danish subsidiaries.
The jointly taxed companies are part of joint taxation
with the parent company as the management company.
Subsidiaries are included in the joint taxation from the
date they are consolidated in the consolidated financial
statements and up to the date on which they are no
longer consolidated.
Current tax for 2024 is recognised by the individual,
jointly taxed companies.
Statement of cash flows
We do not prepare a separate statement of cash flows
for the parent company. Reference is made to the
consolidated statement of cash flows on page 162.
Financial statements | Parent company financial statements 241 ØRSTED ANNUAL REPORT 2024
Employee costs
Note 2
Financial income and expenses
Note 3
Notes 2.7 ‘Employee costs’ and 2.8 ‘Share-based
payment’ to the consolidated financial statements
describe the remuneration of the Executive Board
and the Board of Directors as well as the share-based
payment, termination, and bonus scheme for the
Executive Board and details on the remuneration of
the Board of Directors.
The parent company had an average of eleven
employees in 2024 (2023: nine employees).
Remuneration of the Board of Directors totals
DKK 6 million (2023: DKK 7 million).
Employee costs
DKKm 2024 2023
Wages and salaries 43 47
Share-based payment 2 4
Pensions and social costs 1 1
Remuneration 6 7
Total employee costs 52 59
Salaries and remuneration of the Executive Board
DKK ‘000
Fixed salary 37,969 27,849
Cash-based incentive scheme 4,676 3,711
Share-based payment 2,787 6,270
Pension, incl. social security and benefits 704 858
Salary in notice period - 8,443
Severance payment - 6,210
To t a l 46,136 53,341
Financial income and expenses
DKKm 2024 2023
Interest income from cash, etc. 395 528
Interest income from subsidiaries 11,486 10,516
Interest income from securities at market value 702 707
Foreign exchange gains 2,216 1,356
Value adjustments of derivatives 4,837 8,142
Dividends received 1,664 13
Total financial income 21,300 21,262
Interest expenses relating to loans and borrowings (3,066) (2,759)
Interest expenses, leases (14) (18)
Interest expenses to subsidiaries (6,469) (5,413)
Impairment of investments in subsidiaries (18) -
Capital losses on securities at market value (356) -
Foreign exchange losses (1,819) (1,427)
Value adjustments of derivatives (5,636) (5,321)
Other financial expenses (127) (176)
Total financial expenses (17,505) (15,114)
Net financial income and expenses 3,795 6,148
Financial statements | Parent company financial statements 242 ØRSTED ANNUAL REPORT 2024
Tax on profit (loss) for the year and deferred tax
Note 4
Income tax
DKKm 2024 2023
Tax on profit (loss) for the year (318) (1,240)
Tax on changes in equity (51) 486
Total tax for the year (369) (754)
Tax on profit (loss) for the year can be broken down as follows
Current tax (680) (1,261)
Adjustments to deferred tax 383 39
Adjustments to current tax in respect of prior years 29 (192)
Adjustments to deferred tax in respect of prior years (50) 174
Tax on profit (loss) for the year (318) (1,240)
Development in deferred tax
DKKm
Deferred tax at 1 January (246) (33)
Adjustments for the year recognised in profit (loss) for the year (383) (39)
Adjustments to deferred tax in respect of prior years 50 (174)
Deferred tax at 31 December (579) (246)
Specification of deferred tax
DKKm
Property, plant and equipment 101 125
Other current assets - (1)
Current liabilities (2) -
Non-current liabilities (678) (301)
Tax loss carryforwards - (69)
Deferred tax, asset 579 246
Deferred tax, liability - -
Property, plant, and equipment
Note 5
We have entered into leases for office premises, primarily
in Gentofte, Denmark (expiring in 2028).
We have entered into operating leases with subsidiaries
for sublease of office premises.
In 2024, an amount of DKK 133 million was recognised
(2023: DKK 147 million) in profit (loss) for the year in
respect of rental income.
Property, plant, and equipment: Land and buildings
DKKm 2024 2023
Cost at 1 January 1,114 1,153
Additions - -
Disposals - (39)
Cost at 31 December 1,114 1,114
Depreciation and amortisation at 1 January (545) (441)
Depreciation and amortisation (110) (113)
Disposals - 9
Depreciation and amortisation at 31 December (655) (545)
Carrying amount at 31 December 459 569
Value of leased assets 459 569
Financial statements | Parent company financial statements 243 ØRSTED ANNUAL REPORT 2024
Investments in subsidiaries
Note 6
We have tested investments in subsidiaries for
impairment by comparing the expected future
income from the individual subsidiaries with their
carrying amounts.
Based on the impairment test in 2024, an impairment
has been recognised on the investment in Ørsted
Ventures Europe A/S.
In 2024, ‘Additions’ mainly related to capital injections
in Ørsted Wind Power Holding A/S and Ørsted Onshore
Holding A/S.
In 2024, Ørsted A/S received dividend from Ørsted
Salg & Service A/S. The dividends exceeded the
total income after acquisition, and therefore the
cost of the investment has been reduced.
Investments in subsidiaries
DKKm 2024 2023
Cost at 1 January 51,397 51,809
Reductions (8,356) -
Additions 58,323 -
Disposals - (412)
Cost at 31 December 101,364 51,397
Value adjustments at 1 January (533) (533)
Impairment losses/reversals (18) -
Value adjustments at 31 December (551) (533)
Carrying amount at 31 December 100,813 50,864
Note 7.4 ‘Company overview of the consolidated financial statements’ contains an overview of subsidiaries, etc.
Receivables from subsidiaries
Note 7
Non-current receivables from subsidiaries
DKKm 2023
Cost at 1 January 194,064 163,616
Additions 28,533 50,485
Disposals (98,369) (20,037)
Cost at 31 December 124,228 194,064
Financial statements | Parent company financial statements 244 ØRSTED ANNUAL REPORT 2024
Derivatives
Note 8
Ørsted A/S has assumed the subsidiaries’ currency
risks via forward exchange contracts, which have
subsequently been hedged in the market. Furthermore,
hedging contracts have been concluded to hedge
the currency risk associated with investments in
subsidiaries in foreign currencies.
We have also entered into a number of interest rate
swaps to manage our interest rate risk.
Derivatives at the end of December 2024 mature as
follows: 2025: DKK -344 million, 2026: DKK -389 million,
after 2026: DKK 73 million (2023: 2024: DKK 177 million,
2025: DKK 370 million, after 2025: DKK -236 million).
All derivatives are classified based on observable
inputs in the ‘fair value’ hierarchy.
Overview of derivative positions
DKKm 2024 2023
Contractual principal
amount Market value
Contractual principal
amount Market value
Interest derivatives 12,696 238 25,141 (517)
Currency derivatives 61,205 (898) 39,213 828
To t a l 73,901 (660) 64,354 311
Assets 6,600 5,092
Equity and liabilities (7,260) (4,781)
See note 6.1 ‘Risk framework’ to the consolidated financial statements and the chapter on ‘Enterprise risk management' in the ‘Management’s
review’ on pages 27-30 for more details on risk and risk management.
Securities
Note 9
Loans and borrowings
Note 10
As of 31 December 2024, we had issued hybrid capital
with a total notional amount of DKK 21,358 million
(2023: DKK 19,310 million). The hybrid bonds have a
1,000-year term and expire as follows: DKK 4,474 million
in 3019, DKK 7,562 million in 3021, DKK 3,729 million
in 3022, and DKK 5,593 million in 3024, respectively.
For further information, see note 5.3 ‘Hybrid capital’ to
the consolidated financial statements.
The long-term portion of lease debt amounted to
DKK 396 million at 31 December 2024 (2023: DKK 514
million), of which DKK 24 million (2023: DKK 28 million)
fall due in more than five years.
The long-term portion of bank loans and issued bonds
amounted to DKK 73,641 million at 31 December 2024
(2023: DKK 69,695 million), of which DKK 50,377 mil-
lion (2023: DKK 56,769 million) fall due in more than
five years.
Securities are a key element in our financial resources,
and therefore investments are primarily made in liquid
AAA-rated Danish mortgage bonds and, to a lesser
extent, in other bonds. Most of the securities qualify
for repo transactions in the Danish central bank,
‘ Danmarks Nationalbank’.
All securities are classified based on observable inputs
in the fair value hierarchy.
Securities
DKKm 2024 2023
Securities, available for use 14,140 29,514
Total securities 14,140 29,514
Financial statements | Parent company financial statements 245 ØRSTED ANNUAL REPORT 2024
Other provisions
Note 11
We have made provisions for non-current liabilities
totalling DKK 1,808 million (2023: DKK 1,779 million),
of which DKK 1,808 million fall due in 1-5 years.
The provisions concern the divestment of our oil and
gas business in 2017.
Related-party transactions
Note 12
Related parties are the Board of Directors, the
Executive Board, Ørsted A/S’s subsidiaries, and the
Danish state.
Remuneration of the Board of Directors and the
Executive Board is disclosed in notes 2.7 ‘Employee
costs’ and 2.8 ‘Share-based payment’ in the consoli-
dated financial statements.
Our related-party transactions are made on arm’s
length terms.
Contingent liabilities
Note 13
Guarantees
Ørsted A/S has provided guarantees in connection
with participation by subsidiaries and subsidiaries’
joint operations and joint ventures in the construction
and operation of offshore wind farms and natural
gas installations as well as guarantees in respect of
leases, energy trading activities, purchase, sale, and
supply agreements, decommissioning obligations,
farm-downs and other M&A transactions as well as
secondary liability on decommissioning of offshore
installations related to the divestment of the oil and
gas business, etc.
Ørsted A/S acts as guarantor or surety provider
with primary liability for bank liabilities in certain
subsidiaries, including guarantees in favour of banks
and investors, covering credit facilities established
and bonds issued in Taiwan.
Furthermore, in support of the ratings of Ørsted Salg
& Service A/S by Moody’s and Ørsted Wind Power
TW Holding A/S by Taiwan Ratings, Ørsted A/S has
provided general guarantees covering all obligations
and liabilities undertaken in the ordinary course of
business by these two entities.
Indemnities
Ørsted A/S is taxed jointly with the Danish companies
in the Ørsted Group. As management company,
Ørsted A/S has unlimited as well as joint and several
liability together with the other jointly taxed companies
for Danish income taxes and withholding taxes
on dividends, interest, and royalties related to the
jointly taxed companies.
Litigation
Ørsted is involved in ongoing transfer pricing disputes.
For further information, see section 4.1 ‘Approach
to taxes’ to the consolidated financial statements.
Ørsted A/S is not a party to any litigation proceedings
or legal disputes that could have an effect on the
company’s financial position, either individually or
collectively.
Financial statements | Parent company financial statements 246 ØRSTED ANNUAL REPORT 2024
Auditor’s fees
Note 14
Ownership information
Note 15
‘Other assurance engagements’ primarily included
assurance services related to the issuance of bonds.
Auditor’s fees
DKKm 2024 2023
Statutory audit 5 4
Other assurance engangements 1 3
Total fees to PwC 6 7
Ownership information
31 December 2024 Registered office
Ownership
interests
Voting
share
The Danish state represented by the Danish Ministry of Finance Copenhagen K, Denmark 50.12 % 50.14 %
Equinor ASA Stavanger, Norway 10.00 % 10.00 %
Andel A.M.B.A. Svinninge, Denmark 5.01 % 5.01 %
The table shows the shareholders with ownership interests and voting shares of at least 5 %. The difference between ownership interests and
voting shares is because voting rights of Ørsted’s treasury shares cannot be exercised.
Financial statements | Parent company financial statements 247 ØRSTED ANNUAL REPORT 2024
Management’s
statement, auditor’s
reports, and glossary
249 Statement by the Executive Board and the Board of Directors
250 Independent Auditor’s Reports
255 Independent limited assurance report on selected ESG data in the Sustainability statements
257 Glossary
→
The twelve wind turbines that make up South Fork Wind, off the
coast of New York, the US, are the product of hundreds of skilled US
workers from across the Northeast. They completed construction
in March 2024. The offshore wind farm is the first in the Empire
State, and America’s first at commercial scale, generating enough
renewable energy to power around 70,000 homes.
Financial statements | Management’s statement, auditor’s reports, and glossary248 ØRSTED ANNUAL REPORT 2024
Statement by the Executive Board and the Board of Directors
Executive Board:
Board of Directors:
* Employee-elected board member
Financial statements | Management’s statement, auditor’s reports, and glossary249 ØRSTED ANNUAL REPORT 2024
Independent Auditor’s Reports
Report on the audit of the Financial Statements
Our opinion
Basis for opinion
Key audit matters
Financial statements | Management’s statement, auditor’s reports, and glossary250 ØRSTED ANNUAL REPORT 2024
Financial statements | Management’s statement, auditor’s reports, and glossary251 ØRSTED ANNUAL REPORT 2024
Financial statements | Management’s statement, auditor’s reports, and glossary252 ØRSTED ANNUAL REPORT 2024
Statement on Management’s Report
Management’s responsibilities for the
Financial Statements
Auditor’s responsibilities for the audit of the
Financial Statements
Financial statements | Management’s statement, auditor’s reports, and glossary253 ØRSTED ANNUAL REPORT 2024
Report on compliance with the ESEF Regulation
CVR No 3 37 7 1231
Financial statements | Management’s statement, auditor’s reports, and glossary254 ØRSTED ANNUAL REPORT 2024
Financial statements | Management’s statement, auditor’s reports, and glossary255 ØRSTED ANNUAL REPORT 2024
CVR no. 337 7 1231
Financial statements | Management’s statement, auditor’s reports, and glossary256 ØRSTED ANNUAL REPORT 2024
Availability
Availability is calculated as the ratio of actual
production to the possible production, which is
the sum of lost production and actual produc-
tion in a given period. The production-based
availability (PBA) is impacted by grid and wind
turbine outages, which are technical produc-
tion losses. PBA is not impacted by market-
requested shutdowns and wind farm curtail-
ments, as this is deemed not to be reflective of
site performance but due to external factors.
Awarded capacity
Offshore capacity that we have been awarded
in auctions and tenders, but where we have yet
to sign a PPA and take final investment decision.
Blockage effect
The blockage effect arises from the wind slow-
ing down as it approaches the wind turbines.
Carbon emission allowances
Carbon emission allowances subject to the
European Union Emissions Trading Scheme
(EU ETS).
CfD
A contract for difference is a subsidy that
guarantees the difference between the market
reference price and the exercise price won.
Commissioning/COD
When our assets are in operation, and the legal
liability has been transferred from the supplier
to us.
Contracted capacity
Onshore capacity where we have signed
PPAs covering more than 50 % of the asset’s
capacity, but where we have not yet taken
final investment decision.
CSRD
Corporate Sustainability Reporting Directive.
Decided (FID) and installed capacity
Installed generation capacity plus capacity for
assets where a final investment decision has
been made.
Degree days
Number of degrees in absolute figures in
difference between the average temperature
and the official Danish indoor temperature
of 17 °C.
DMA
Double materiality assessment.
EPC
Engineering, procurement, and construction.
The part of our business which handles the
construction and installation of assets.
ESRS
European Sustainability Reporting Standards.
FID
Final investment decision. When the Board
of Directors approves major investments for
construction assets.
Generation capacity
Capacity to generate power or heat. Generation
capacity for an offshore wind farm is calculated
and included from TOC of the individual wind
turbines. TOC stands for ‘take over certificate’,
which is the document signifying transfer of
ownership from the contractor to the owner or
operator of the asset. Onshore capacities are
included after COD of the entire asset.Genera-
tion capacity is financially consolidated.
Green certificates
Certificate awarded to producers of
environment-friendly power as a supplement
to the market price of power in the given
price area.
Wood pellet spread (WPS)
Represents the contribution margin per MWh
of power generated at a wood pellet-fired CHP
plant with a given efficiency. It is determined
as the difference between the market price
of power and the cost of the wood pellets
(including associated freight costs).
Ineffective hedges
When we hedge our exposure with an
instrument that is not 100 % correlated with
the exposure, we may see ineffectiveness in
our hedging. The value of ineffective hedges
should be recognised in profit and loss
immediately.
Installed capacity
Installed capacity where the asset has been
completed and has passed a final test.
Investment tax credits (ITCs)
US federal tax credit based on qualifying
renew able investment costs.
Load factor
The load factor is calculated as the ratio
between actual generation over a period
relative to potential generation, which is
possible by continuously exploiting the
maximum capacity over the same period.
The load factor is commercially adjusted.
Offshore transmission assets
Connect offshore generation to the onshore
grid and typically include the offshore power
transmission infrastructure, an onshore
substation, and the electrical equipment
relating to the operation of the substation.
OREC
Offshore renewable energy certificates are
issued on the state level in the US. For every
MWh that an offshore wind farm produces,
the developer earns one OREC. Offshore wind
developers sell the ORECs to utilities or other
companies. The income from these sales helps
fund the construction and operation of the
wind farms.
Partnership income
Income originating from our partners’
purchase of ownership interests in renewable
assets. Includes both the gain in connection
with the farm-down and the subsequent
construction of the wind farm.
Power purchase agreement (PPA)
An agreement between us and a buyer/seller
to purchase/sell the power we generate, which
includes all commercial terms (price, delivery,
volumes, etc.).
Production tax credit (PTC)
US federal tax credit based on eligible power
generation in the US.
ROCs
Renewable obligation certificates issued by
Ofgem in the UK to operators of accredited
generating stations for the eligible renewable
energy they generate. Operators can trade
ROCs with other parties.
Tax equity
An arrangement where an investor obtains
rights to federal tax credits and other tax
attributes in exchange for a cash contribution.
TCFD
Task Force on Climate-Related Financial
Disclosures.
Transmission network system of use
(TNUoS) tariffs
Costs related to the use of the transmission
networks in the UK based on maximum
contractual level of transmission access in
MW (TEC).
TRIR
In addition to lost-time injuries, the total
recordable injury rate (TRIR) also includes injuries
where the injured person is able to perform
restricted work the day after the accident as
well as accidents where the injured person has
received medical treatment.
Wake effect
Wake within wind farms and between neigh-
bouring wind farms. There is a wake after each
wind turbine where the wind slows down. As the
wind flow continues, the wake spreads, and the
wind speed recovers.
Wind speed
Shows the wind speed at Ørsted’s wind farms.
The wind measurements are weighted on the
basis of our generation capacity and can be
compared to a normal wind period.
Glossary
Financial statements | Management’s statement, auditor’s reports, and glossary257 ØRSTED ANNUAL REPORT 2024
Tel.: +45 99 55 11 11
CVR no. 36213728
Media Relations
Lina Danstrup
Tel.: +45 99 55 76 96
Investor Relations
Rasmus Keglberg Hærvig
Tel.: +45 99 55 90 95
Design and layout
e-Types with The Agency, Ørsted
Images
All images by Ørsted
Publication
6 February 2025