Denmark

Denmark

Ørsted keeping tabs on Covid-19 impact

Ørsted’s under-construction wind farms are progressing according to plan despite the coronavirus (Covid-19) pandemic. It continues to monitor how the virus will affect its operations.

Monopile foundation at Ørsted's 1.2GW Hornsea One wind farm in UK waters
Monopile foundation at Ørsted's 1.2GW Hornsea One wind farm in UK waters

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Ørsted maintained its financial guidance for 2020, but flagged a number of risks due to the pandemic, including reduced power demand potentially pushing down wholesale prices, and divestments facing possible delays due to approval processes being conducted virtually.

Henrik Poulsen, CEO, is leading a taskforce to steer the company through the pandemic, the developer announced.

It will monitor the pandemic’s impact in markets where it operates and implement national guidelines and regulations. 

A large number of employees are already working from home, making it difficult to fully staff site operations and service operation vessels, the company stated.

It also envisages suppliers facing difficulties in delivering critical components to projects, which may hinder project construction.

However, currently, Ørsted's asset base is fully operational at “availability rates within the normal range” and construction projects are proceeding according to plan.

Guidance

Earlier this month, Ørsted increased its full-year earnings guidance by DKK 1 billion (€130 million) to DKK 16-17 billion due to the impending sale of the transmission assets for the 1.2GW Hornsea One offshore wind farm. 

The company remains largely shielded from market volatility in the short- to medium-term due to its extensive hedging programme, it stated. 

However, the developer sees risk — albeit limited — of being materially impacted by decreasing gas and power prices and volatile currency rates.

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