DNNGY - Ørsted says on track to outperform long-range EBITDA ROCE targets

2023-06-08 07:56:52 ET

Ørsted ( OTCPK:DNNGY ) +7% in European trading early Thursday after confirming its target of 50 GW of installed renewable capacity by 2030 and saying it expects to spend ~475B Danish kroner ($68.2B) to achieve it.

The company said the investments would be fully self-funded and that it expects to outperform goals set in 2021 for EBITDA and return on capital employed; it now forecasts annual EBITDA growth from offshore and onshore assets in operation at 15% compared to 12% previously, and sees average return on capital employed of 15% vs. its prior outlook of 11%-12% between 2020 and 2027.

Ørsted ( OTCPK:DNNGY ) also confirmed its dividend policy of an annual high single-digit percentage increase in dividends until 2025, extending the dividend policy to 2030 with an annual mid-level single-digit percentage increase in dividends paid during 2026-30.

The company also said it expects to take a final investment decision on its planned Hornsea 3 offshore wind project in the U.K. this year; it warned earlier this year that the 2.8 GW project may not move forward without more government support such as tax breaks.

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