Orsted A/S (OTC: DOGEF) Q2 2025 Earnings | 08/11/2025

10 days ago

1:33:19

Inside Ticker

Earnings Calls

AI Summary

Summary of Ørsted A/S Q2 2025 Earnings Call

Key Announcement:
Ørsted announced a fully underwritten rights issue of $60 billion, supported by its majority shareholder, the Danish state. This move aims to:

Fund full ownership of the Sunrise Wind project (U.S.) after discontinuing its divestment and non-recourse financing process.
Strengthen capital structure to support strategic plans and future growth.
Improve financial flexibility for value-accretive partnerships and divestments.

Operational Highlights (H1 2025):

EBITDA (excl. partnerships & cancellation fees): $13.9B.
On track for full-year EBITDA guidance: $25–28B.
Key project milestones:
- Greater Changhua 2B & 4 (Taiwan): First power achieved.
- Revolution Wind (U.S.): Turbine foundations installed.
- Sunrise Wind (U.S.): Turbine foundation installation started.
Divestments secured: $7B.
Project financing closed for Greater Changhua 2: ~$20B raised.
Offshore wind availability: 92% (up YoY).

Strategic Priorities:

Strengthen capital structure (via rights issue, reduced investments).
Deliver 8.1 GW offshore wind construction program (doubling capacity by 2027).
Sharpen capital allocation (discontinued Hornsea 4 in current form).
Improve competitiveness (organizational restructuring, cost efficiency).

Sunrise Wind Update:

Construction progressing well (35% complete).
Discontinued divestment & financing process due to increased investor risk aversion post-Empire Wind stop-work order.
Incremental funding need: ~$40B (2025–2027).
Lifecycle IRR remains mid-single-digit.

Financial Impact & Outlook:

Revised gross investments: $145B (up $15B due to Sunrise Wind ownership & U.S. tariffs).
EBITDA projections:
- 2025: $25–28B (unchanged).
- 2026: >$28B (adjusted down due to timing of Greater Changhua 2 farm-down).
- 2027: >$32B (boosted by new project commissions).
ROCE (2025–27): ~11% (impacted by Sunrise Wind capex).
Dividends: Reinstatement planned for FY2026 (payout in 2027).

Rights Issue Details:

Size: $60B (fully underwritten by Morgan Stanley).
Danish state supports pro-rata (50.1%).
EGM scheduled for Sept 5, 2025; expected close by early October.

Future Strategy:

Focus on offshore wind in Europe & selective Asian markets.
Scale back U.S. development (only complete Revolution & Sunrise Wind).
Explore divestment of European onshore business.
U.S. onshore to operate more independently.
Cost efficiency measures: $2–2.5B annual savings by 2027.

About this video

Orsted A/S reported strong second-quarter 2025 results, reflecting improved profitability and solid operational execution across the company’s renewable energy portfolio. Q2 revenue rose 14% year-over-year to DKK17,135 million, supported by growth in offshore and onshore generation. EBITDA for the quarter reached DKK6,644 million, up slightly from DKK6,570 million in Q2 2024. Adjusted for new partnerships and cancellation fees, EBITDA totaled DKK5,339 million, a 1% year-on-year increase. Net income for Q2 amounted to DKK3,351 million, a swing from a loss of DKK1,678 million in Q2 2024, driven by higher EBITDA, lower impairments, and reduced tax expense. Basic and diluted earnings per share from continuing operations both reached DKK7.3, compared to a loss of DKK4.1 per share a year ago. Profit before tax for the quarter was DKK3,989 million. Cash flow from operating activities in Q2 2025 was DKK7,186 million, up 18% year-over-year. Free cash flow, however, declined to DKK290 million from DKK782 million last year, reflecting higher gross investments (DKK11,154 million) in new projects and continued portfolio expansion. The company reported net interest-bearing debt of DKK67,137 million as of the end of the quarter. Operational highlights included increased contributions from new offshore wind sites, improved availability, and higher revenues from contracts for difference and green certificates. The company also benefited from the ramp-up of onshore solar assets and stronger performance in combined heat and power and gas segments. No significant impairment losses were recorded in Q2, following last year’s write-downs. Orsted announced plans for an extraordinary general meeting on 5 September 2025 to seek shareholder approval for a rights issue of up to DKK60 billion. Proceeds are earmarked to support the 8.1GW offshore wind construction portfolio through 2027 and reinforce the balance sheet during a key growth phase. Looking ahead, Orsted reiterated its full-year 2025 EBITDA guidance of DKK25-28 billion. Risks cited include commodity price volatility, currency fluctuations, regulatory changes, and the need to deliver against ambitious construction timelines for offshore wind assets. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #Orsted #DOGEF #Q22025 #Earnings #FinancialResults #Renewables #OffshoreWind #EBITDA #NetIncome #EPS #RevenueGrowth #CashFlow #CapitalRaise #RightsIssue #WindEnergy #SolarExpansion #Dividend #DebtManagement #OperationalHighlights #SustainableEnergy #InvestorUpdates #OTC #GreenTransition #InsideTicker

Important Note: The stock market is inherently unpredictable, and forecasts are subject to change based on various factors, including economic conditions and company performance. Always consult multiple sources and consider professional advice before making investment decisions.

AI-Powered Financial Analysis This analysis uses real-time market data. While we strive for accuracy, always verify important financial information and consult with qualified financial professionals before making investment decisions. Past performance does not guarantee future results.