Orsted, the Danish wind developer, said its green assets underperformed its brown assets in 2021, due to low wind speeds and the European energy “crisis”.
Offshore wind operating profits have been affected by low wind speeds, high development expenses and the high cost of purchasing intermittent power due to the European energy crisis.
This was offset by better results from Orsted’s gas business and its thermal and power plants which mainly burn wood pellets to produce electricity.
Earnings before interest, taxes, depreciation and amortization of Orsted’s gas business increased by 345% in 2021 compared to the previous year, while the EBITDA of its power plants increased by 188%.
As the largest offshore wind developer in the world, Orsted expanded into the US offshore market and also began to develop onshore wind. The company said its onshore wind assets will be significantly more profitable next year.
Orsted’s revenues increased by 48% in 2021 compared to the previous year, but Ebitda (excluding new partnerships) fell by 13%.
Net profit was 35% lower than a year earlier and slightly below analysts’ expectations.
Nevertheless, Orsted’s board recommended increasing the dividend by 8.7% to DKr 12.5 per share.
Orsted also announced the appointment of a new chief financial officer, Daniel Lerup, who previously served as the company’s senior vice president.