Ørsted A/S

In Q2 2026, Ørsted reported EBITDA excluding new partnerships and cancellation fees of DKK 5.4 billion. For the first half of 2026, EBITDA excluding new partnerships and cancellation fees was DKK 15 billion, up by more than DKK 1 billion versus H1 2025, helped by ramp-up generation in offshore and slightly higher wind speeds. The company recorded a noncash impairment loss of DKK 1.2 billion on its U.S. offshore project, and Q2 net profit was DKK 700 million; net profit adjusted for impairments, new partnerships and cancellation fees was DKK 1.9 billion versus DKK 2.1 billion a year ago. Reported ROCE was 3.1%, and adjusted ROCE was 6.6%. Net debt ended the quarter at DKK 22 billion, gross investments were DKK 10.1 billion, liquidity was more than DKK 115 billion, and FFO to adjusted net debt was approximately 45%. For 2026, Ørsted kept guidance for EBITDA excluding new partnerships and cancellation fees at more than DKK 28 billion and gross investments at DKK 50 billion to DKK 55 billion; it now expects bioenergy and other to be lower, while offshore should be higher than last year and onshore in line with 2025.

Rasmus Errboe said the first half showed why Europe needs more energy independence and faster electrification, and he framed offshore wind as central to that transition. He was notably constructive on the industry outlook, citing improved tender frameworks in Denmark, the U.K., Poland and the Netherlands, as well as the Hamburg 300 GW build-out target. His tone on growth was confident but disciplined: Ørsted will pursue opportunities only where the value case works, and he said he is bullish on the company’s ability to build profitable growth in its core markets.

Trond Westlie said Q2 operational performance was in line with expectations, with EBITDA excluding new partnerships and cancellation fees of DKK 5.4 billion. He highlighted the DKK 1.2 billion noncash impairment on the U.S. offshore project tied to higher long-dated U.S. rates, and noted that net debt rose by DKK 700 million to DKK 22 billion while gross investments totaled DKK 10.1 billion. He also pointed to a strong credit position, with FFO to adjusted net debt at about 45% versus a target of above 30%, and liquidity of more than DKK 115 billion. On capital allocation, he said Ørsted plans to reinstate dividends for FY2026, with the first payout in 2027, and expects the starting dividend level to be in the lower part of the DKK 2 to DKK 5 per share range discussed with consensus.

Analysts pressed on whether Ørsted would be forced to return cash if it becomes overcapitalized after 2027, but management said that is a fourth-priority topic and it is too early to speculate on metrics. Questions also focused on weak recent auction pricing, especially Denmark, and whether the company would need a different competitive environment; management replied it will stay disciplined and only bid where value and strategic fit work. In the U.S., management said tax credit marketing for Revolution Wind is progressing well, Sunrise’s marketing has not started and is unlikely to begin until early 2027, and tariff/Section 232 visibility remains uncertain, with nothing material yet beyond existing assumptions.