Orsted profit beats estimates, lowers full year investment outlook

Orsted Q3 Profit Beats Estimates, Trims Full-Year Investment Plans

Orsted's Third-Quarter Financial Performance and Investment Update

COPENHAGEN, Nov 5 (Reuters) - Danish offshore wind farm developer Orsted on Thursday reported a third-quarter core profit above forecasts and cut its gross investment projection for the full year.

Growth and Market Challenges

Orsted expanded rapidly over the past decade, but more recently faced higher costs from supply chain disruption and inflation, and faces regulatory challenges in the United States, where President Donald Trump has sought to halt developments.

Financial Highlights

• Profit before interest, tax, depreciation and amortisation (EBITDA), excluding new partnerships and cancellation fees for July-September rose to 5.26 billion Danish crowns ($792.50 million) from a year-earlier 3.06 billion, above an average forecast of 4.42 billion crowns seen in a company-provided poll

CEO Statement

• "Our results underline our ability to deliver on our strategic priorities as planned while continuing to pursue attractive growth opportunities in our core markets," CEO Rasmus Errboe said in a statement

Outlook and Investment Plans

• The company reiterated its full-year outlook from February of a core profit above 28 billion crowns, but said it now expected gross investments of between 45 billion and 50 billion crowns, down from between 50 billion and 55 billion

US Offshore Projects Update

• Orsted flagged a non-cash impairment loss of 3.44 billion crowns related to its US offshore projects due to increases in the long-dated US interest rate, in line with what analysts had expected ahead of the report

• The company announced the completion of its US offshore project Revolution Wind, in accordance with its previously given timeline

Exchange Rate

($1 = 6.6372 Danish crowns)

Reporting Credits

(Reporting by Louise Rasmussen, editing by Terje Solsvik)