Orsted Achieves Strong Results Despite Market Volatility
SINGAPORE / ACCESS Newswire / May 9, 2025 / Sycamine Capital Management highlights Orsted's robust first-quarter performance for 2025, emphasizing the company's resilience amid ongoing market challenges. The Danish renewable energy leader achieved an adjusted EBITDA of approximately USD 1.26 billion (DKK 8.6 billion), marking a significant 14% increase compared to the same period last year, surpassing analyst expectations despite ongoing supply chain and regulatory pressures.
Operational efficiency notably improved, with margins rising to 42.8 from 39.1% year-on-year, demonstrating effective operational management and strategic adaptability in a volatile economic environment.
A key driver behind these strong results was the successful commissioning of Germany's 900 MW Gode Wind 3 offshore wind farm, which recorded an impressive asset availability rate of 97% over the preceding 12-month period. This operational excellence significantly enhanced profitability within Orsted's core offshore wind segment, contributing substantially to its quarterly success.
Richard Kelly, Director of Private Clients at Sycamine Capital Management, recognizes Orsted's strategic approach, noting the company's capability to maintain "robust financial discipline and operational excellence despite ongoing sector headwinds."
In a strategic effort to preserve capital efficiency, Orsted recently cancelled the UK-based 2,400 MW Hornsea 4 offshore wind project. Anticipated breakaway costs are projected between USD 500 million and USD 650 million, reflecting prudent management amid rising costs and increased financing pressures. Kelly observes that Orsted clearly appreciates "the importance of balancing immediate financial realities with sustainable long-term value."
Despite this significant decision, Orsted confidently reaffirms its full-year EBITDA guidance of between USD 3.66 billion and USD 4.10 billion, indicating sustained confidence in its diversified and flexible portfolio. The company's proactive stance effectively prepares it to manage future market and regulatory challenges, particularly in the US, where recent tariff changes have notably impacted project costs.
Sycamine Capital Management emphasizes Orsted's disciplined financial approach and robust operational execution, positioning the company advantageously within the renewable energy sector's evolving landscape.
About Sycamine Capital
Established in 2008, Sycamine Capital Management Pte. Ltd. (UEN: 200804809G) provides investors with strategic advantages through rigorous analytical insights, consistently anticipating market trends. For additional insights, please visit https://scmgt.com/sycamine-investment-focus-articles/. Media enquiries can be directed to Simon Lau at simon.lau@scmgt.com, or visit https://scmgt.com.
SOURCE: Sycamine Capital Management
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