Ørsted delivers higher profits despite energy crunch headwinds

​​Danish clean energy group Ørsted on Wednesday reported an operating profit of DKK 24.3 billion (US$3.7 billion) for 2021, a 34 percent year-on-year increase thanks to farm-down transactions related to offshore wind assets.

The company said in a statement that it expected a boost in earnings as wind speeds should return to normal this year after an unusually calm 2021.

“We successfully navigated the challenges during the year,” chief executive Mads Nipper said in a statement. “We expect operating profit, excluding new partnerships, to be DKK19-21 billion [$2.9 billion - $3.2 billion] in 2022, positively impacted by ramp-up from new wind and solar assets.”

For the fourth quarter, Ørsted’s EBITDA, including new partnerships, was DKK 8.25 billion – up 65 percent but below the DKK 8.58 billion expected by analysts in a poll compiled by the company.

The company’s earnings included a gain of DKK 8.5 billion from the 50 percent farm-downs of Borssele 1 & 2 and Greater Changhua 1, it said.

“We came in well in line with our expectations and delivered strong financial results despite unforeseen negative impacts during the year, including lower wind speeds, the European energy crunch, and provisions due to updated wake assumptions and cable protection system issues at some of our offshore wind farms,” the company said.

“This was due to exceptionally good performance by our CHP plants and our gas business,” it said.