Sustainable power bunch Orsted (ORSTED.CO), opens new tab on Thursday hailed impedance misfortunes of 3.2 billion Danish crowns ($472 million) due to a limited extent to a one-year defer in development of a significant U.S. seaward wind project. With a 59% increase in profit before interest, tax, depreciation, and amortization (EBITDA) for the second quarter (excluding new partnerships) of 5.27 billion Danish crowns, the world’s largest offshore wind farm developer still exceeded expectations.
In a survey of analysts conducted by Orsted, that was higher than the average forecast of 4.41 billion crowns. Orsted said that its 704 MW Revolution Wind project off the coast of Connecticut and Rhode Island would begin commercial operations in 2026 instead of 2025.
CEO Mads Nipper stated in a statement, “The construction of the onshore substation for the project has been delayed despite encouraging progress on our U.S. offshore wind project Revolution Wind.” Naturally, this is not satisfactory, and we will continue our dedicated efforts to reduce portfolio risk,” he stated. Orsted stated that the project’s impairment losses totaled 2.1 billion crowns.
In addition, impairment losses were incurred as a result of the company’s decision to halt development of a green e-methanol project in Europe, an increase in long-dated interest rates in the United States, and its Ocean Wind project in the United States, which it halted development of last year.
Orsted stated that it would reduce investments this year, despite maintaining its forecast for profit for the full year. Nipper stated, “Orsted’s operations are performing well, and particularly the earnings from our offshore wind farms, which have increased, and thus our core business.”
