Orsted AS (DNNGY) Q3 2025 Earnings Call Highlights: Strong Capital Moves Amid Operational Challenges

This article first appeared on GuruFocus.

Release Date: November 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Orsted AS (DNNGY) successfully completed a rights issue in early October, significantly strengthening its capital structure. The company entered into an agreement with Apollo to divest a 50% ownership share in the Hornsea 3 project, valued at approximately 39 billion, further bolstering its financial position. Despite below-average wind speeds, Orsted AS (DNNGY) delivered 17 billion in EBITDA for the first nine months, driven by high availability across its offshore portfolio. The company is on track to deliver its full-year EBITDA guidance of 24 to 27 billion, showcasing strong operational performance. Orsted AS (DNNGY) has made significant progress on its offshore wind construction projects, with several projects advancing according to schedule, including Borkum Riffcon 3 and Baltica 2.

Negative Points

The Revolution Wind project in the US faced a stop work order, causing delays and legal proceedings, although activities have since resumed. Orsted AS (DNNGY) reported impairments of 1.8 billion, primarily related to US offshore projects due to higher tariffs and increased costs. The company's net profit for the quarter was a negative 1.7 billion, impacted by decreased earnings and impairments. The EBITDA for the offshore business decreased due to lower wind speeds, reduced subsidy levels, and lower power trading earnings. The company faces ongoing risks related to US trade policies, including potential increased tariffs on wind components, which could impact future financial performance.

Q & A Highlights

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Q: What is the expected lifetime of Orsted's offshore wind assets, and how should this be factored into evaluations? A: The economic value is based on a depreciation period of just under 25 years. However, the business case and lease period are longer due to maintenance programs and repowering possibilities. It's important to distinguish between how assets are capitalized and depreciated versus the business case duration. (Respondent: CFO Trent Westley)

Q: Regarding the Hornsea 3 sell-down, how will the cash flow profiling affect book value risk or volatility? A: Adjustments will be evaluated quarterly under IFRS rules, impacting the financial income line. While there will be some adjustments, they are not expected to be significant. The company will provide more detailed guidance in February. (Respondent: CFO Trent Westley)

Story Continues

Q: Can you provide an update on the Revolution Wind project and the legal proceedings related to the stop work order? A: The project is progressing well, with the injunction allowing construction to continue. The focus remains on achieving a complete resolution through both legal and dialogue tracks with the administration. (Respondent: CEO Rasmus Herbaut)

Q: What is Orsted's stance on potential cooperation with Equinor, especially considering comments about new business models and consolidation? A: While Orsted values its relationship with Equinor as a shareholder, the current focus is on executing the company's strategy and delivering on its plan. Any future cooperation would be considered if it adds value for shareholders. (Respondent: CEO Rasmus Herbaut)

Q: How is Orsted addressing the security of subsea cables, and have there been any known sabotage incidents? A: Security is a priority, and Orsted works closely with governments and NATO to develop successful mitigations for defense coexistence. However, specific impacts on individual cables are not disclosed. (Respondent: CEO Rasmus Herbaut)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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