COPENHAGEN, Nov 3 (Reuters) – Danish energy firm Orsted ( ORSTED.CO ) on Thursday raised its profit outlook for the year on the back of higher energy prices, with third-quarter core earnings slightly missing expectations on the back of a softer performance. The Beach Key.
Orsted expects 2022 earnings before interest, taxes, depreciation and amortization, excluding the new joint venture, to be between 21 billion and 23 billion Danish kroner ($2.77 billion-$3.03 billion).
The better outlook was mainly driven by higher earnings at its smaller business Bioenergy et al, which it says is producing cogeneration and power plants “due to high energy prices in Denmark”.
This unit benefits from higher energy prices and Oersted’s exposure to wind and solar generation is hedged through subsidy contracts and long-term power purchase agreements.
Bioenergy and other core earnings jumped 53 percent in the third quarter and beat expectations, while the Danish company’s key offshore wind unit missed forecasts.
Sidebank analyst Per Fogg said the loss in the offshore segment was partly due to over-hedging as the company produced less than expected in the quarter and had to buy the product at higher market prices.
Earnings before interest, taxes, depreciation and amortization (EBITDA), including new partnerships, for the quarter came to 12.3 billion Danish crowns ($1.62 billion), compared with 12.7 billion expected by analysts polled by the company.
($1 = 7.5910 Danish kroner)
Reporting by Stine Jacobsen, additional reporting by Nikolaj Skidsgaard, editing by Tere Solsvik
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