Ørsted’s interim report for the first half of 2024 reveals increased earnings from its offshore wind projects.
The company reported an operating profit of DKK 14.1 billion (£1.6bn), up from DKK 10.2 billion (£1.17bn) in the same period last year, largely due to higher output and prices from offshore wind farms.
Ørsted has also added nearly 2GW of renewable energy capacity, serving over 1.5 million households.
Despite these gains, Ørsted is dealing with delays in the Revolution Wind offshore project and has decided to stop developing FlagshipONE.
FlagshipONE was an e-methanol production facility under construction in Örnsköldsvik, northern Sweden.
It was produced to produce 55,000 tonnes of e-methanol annually, sufficient to fuel one large container ship.
These issues, along with impairment losses, have affected the company’s financial performance.
The company has maintained its EBITDA guidance for the year but adjusted its investment forecasts.
Mads Nipper, Group President and Chief Executive Officer of Ørsted, said: “Despite encouraging progress on our US offshore wind project Revolution Wind, the construction of the onshore substation for the project has been delayed.
“This means that we have pushed the commercial operation date from 2025 into 2026, which led to an impairment. This is, of course, unsatisfactory, and we continue our dedicated efforts to de-risk our portfolio.
“The liquid e-fuel market in Europe is developing slower than expected, and we have taken the strategic decision to de-prioritise our efforts within the market and cease the development of FlagshipONE.
“We will continue our focus and development efforts within renewable hydrogen, which is essential for decarbonising key industries in Europe and closer to our core business.”
