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Orsted announced the cessation of US offshore parks Ocean Wind 1 & 2 resulting in a massive impairment of DKK28.4bn ($4bn) booked in 9M23, plus an additional impairment of DKK8-11bn to be booked in the Q4 – a substantial increase from the initial DKK16bn ($2.3bn) announced in August. The FY23 EBITDA guidance remains unchanged in a DKK20-23bn range whilst the capex guidance has been reduced for the second time this year, by DKK4bn to DKK40-44bn.
Companies: Orsted A/S (ORSTED:CPH)Orsted (ORSTED:CSE)
Orsted surprised the market with the announcement of an impairment series of up to DKK16bn ($2.35bn) related to US offshore wind assets. The group is facing many issues associated with additional delays, supply-chain disruptions, expected tax reduction not achieved, increased costs, and the impact of rising interest rates. The market’s expectations of offshore projects are high and Orsted reminds us that their execution is complex and that in the end it is all a matter of DCF with its multiple v
After a weak Q1 which was negatively affected by lower prices and poor wind conditions, the Q2 results were down owing to the same reasons, with no compensation this year from new partnerships/farm-downs which had contributed DKK1.6bn in H1 last year. Orsted nevertheless confirmed the guidance provided for 2023 at the beginning of the year with EBITDA expected in a DKK20-23bn range. However, the Capex guidance has been officially lowered by DKK6bn for timing reasons, from DKK50-54bn to DKK44-48
Orsted confirmed its 2030 ambition to reach c.50GW of installed renewable capacity worldwide. To reach this objective and keep its No.1 position in offshore wind, they now foresee investing a gross amount of DKK475bn vs DKK350bn in the previous 2020-27 plan excluding JVs and Engineering, procurement, and construction partnerships (EPC).
Orsted’s EBITDA registered a 27% decline in Q1 23 against the backdrop of a sharp decline in gas prices since Q4 22. Unfavourable spreads for power-condensing generation weighed on the CHP plants with EBITDA on Bioenergy & Other down by 79% yoy to DKK2bn. However, the normalisation in power prices allowed the group to reverse last year’s loss, due to ineffective overhedging positions, with a DKK2bn positive contribution to EBITDA.
After a year against a backdrop of unprecedented volatility on the energy markets, Orsted set a record in 2022, with EBITDA up by 32% yoy to DKK32.1bn, including new partnership agreements, despite lower than expected results in Q4. The group benefited from growth in onshore and solar PV units, as well as Bioenergy & Other segment, which offset the lower earnings in offshore wind. Given a normalisation in energy prices, Orsted confirmed a conversative EBITDA guidance of DKK20-23bn.
Orsted reported another encouraging Q3 22 with EBITDA up by 313% to DKK12.317bn vs Q3 21, leading the Danish offshore giant to upgrade its FY2022 guidance by DKK1bn. Here again, the outlook was driven by a good performance in the Bioenergy & other segment, amid volatile energy prices, offsetting the decrease in offshore and onshore wind power generation. The group also conserves its dynamic in renewable investments which also supported in its EBITDA guidance increase.
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FY24 Interim results: A record H1 performance delivered revenue growth of 62.5% to £105.1m (H1 FY23: £64.6m), with growth across all divisions: Batteries +1.4%, Lighting +21.8%, Sports Nutrition & Wellness +17.5%, Vaping +32.5% (ex- ElfBar) and Branded Distribution +798.9%, which includes revenue of £26.4m from the ElfBar distribution opportunity, commenced in June. Adj. EBITDA of £15.2m is +88.0% (H1 FY23: £8.1m) benefitting from higher sales, and operational efficiencies. Adj. PBT of £12.6m is
Companies: Supreme PLC
Today’s interims are in line with the recent trading update (11th October) and as such we make no changes to forecasts. Revenue of £324.8m represents a LFL decline of 14%, with EBITDA of £25.6m (H123: £25.5m). This is a strong performance, against what is a challenging market backdrop and underlines the benefits of its diversified operating model and focused strategy. We therefore continue to be surprised at the weakness of the share price, especially in the context of a broader peer group. Putt
Companies: Brickability Group PLC
Epwin has released a brief trading update confirming that it is on track to meet FY23 estimates. It has also announced its intention to start a buyback, indicating the Board’s confidence in the business going into FY24, despite the volatile operating environment. Zeus leave profit estimates unchanged across the forecast period. This is a continuation of the performance over the last few years, the business has met or beaten consensus numbers since FY20, has not raised equity and managed its bala
Companies: Epwin Group PLC
Companies: CPH2 TIDE MRL BRCK JNEO
The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith.
A series of initiatives – branding
Companies: Kinovo PLC
The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.
Companies: TLOU PTAL HTG ENW ITM BLVN RKH HBR UJO GMS JOG MATD CEG GENL AXL
Companies: James Cropper plc
Plant Health Care has announced a trading update, noting that market conditions in the wider agriculture market have deteriorated but that it continues to outperform the wider market with growth in all regions except the US. In the US, aggressive inventory destocking means orders that were expected in 4Q FY23 are now projected in early FY24. Plant Heath Care therefore now anticipates revenue for FY23 to show flat to modest growth over FY22 (which compares to the crop protection sector where reve
Companies: Plant Health Care PLC
Companies: Quadrise PLC
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Companies: Severfield Plc
Companies: Yu Group PLC