December 03, 2018

In connection with the company’s Capital Markets Day, Ørsted’s Board of Directors approved the group’s new strategic ambition and financial targets.
CEO and President Henrik Poulsen said:
“We expect the global market for renewable energy to more than triple towards 2030. As one of the leading companies within renewable energy, Ørsted has a strong platform to take part in this build-out.
Today, our portfolio consists of 11.9GW of offshore and onshore wind farms and biomass-fired combined heat and power plants that are either in production, under construction or have been given final investment decision (FID). We also have projects with a capacity of 4.7GW for which we’ve been awarded the concessions to construct, but are yet to make the FID. In addition, we have a strong pipeline of projects under development. Towards 2030, it’s our strategic ambition to reach an installed capacity of more than 30GW, provided that the build-out creates value for our shareholders. As an important step, we’re raising our 2025 ambition for offshore wind from 11-12GW to 15GW.”

• Gross investments: Around DKK 200 billion from 2019-2025
• Investment allocation:
• Offshore 75-85%
• Onshore 15-20%
• Bioenergy and Customer Solutions 0-5% in total
• Operating income growth from offshore and onshore wind farms: Annual average growth of 20% in the years 2017-2023, corresponding to an EBITDA of DKK 25-26 billion in 2023
• Multiple for the capital investments at 13.5 DKKm/MW, excluding transmission assets, in Borssele 1&2, Hornsea 2, Gode Wind 3&4 and German Cluster 1 (average weighted capacity, real 2019 prices)
• Unlevered lifecycle IRR of 7.5-8.5%, average weighted capacity, for offshore wind projects won in competitive tenders since 2015 (Borssele 1&2, Hornsea 2, Gode Wind 3&4, German Cluster 1, Greater Changhua 1&2a and 2b&4 and Revolution Wind)
• ROCE: 10%, average 2019-2025
• Dividend policy until 2025: Annual dividend increased with high single-digit
• Share of regulated or contract-based operating income (EBITDA): 90%, average in 2019-2025.

(Source: Orsted)