1 Month : From Feb 2020 to Mar 2020
Following the outbreak of COVID-19, we activated our Corporate Crisis
Management Organisation, which is headed by the Executive Committee and
chaired by CEO Henrik Poulsen, to steer Ørsted through the
unfolding global crisis.
Our first priority is the health and well-being of our employees and
their families and the communities we are a part of. We closely follow
the situation in the markets in which we operate and implement national
guidelines and regulations. This includes preventive measures such as
travel and commute restrictions, working from home, splitting of teams,
quarantine policy for infected and potentially infected employees, and
enhanced hygiene at all locations. We have instructed and encouraged all
employees to be disciplined in following all preventive measures.
We will implement further measures as deemed necessary, and in
accordance with the development of local authorities' guidelines.
Ørsted plays a key role in supplying the energy which societies
depend on. Ørsted's operational and financial situation remains
stable. We maintain continuity in all business-critical operations even
with the extensive preventive measures being implemented, including a
large number of employees working from home. In particular, please note
-- our asset base is fully operational at availability rates within the
-- we continue to meet our heating and electricity supply obligations
-- our construction projects are all progressing according to plans
-- due to our extensive hedging programme, we remain largely shielded in the
short to medium term from the current extreme market volatility and see
limited risk of being materially impacted by decreasing gas and power
prices as well as volatile currency rates
-- our liquidity reserve is sized to support our significant investments in
renewable energy projects. We currently have more than DKK 30bn in
liquidity reserves (cash, cash equivalents, and committed facilities),
which can support our operations and construction programmes through 2020
and 2021 without further funding.
We remain vigilant about the unfolding global crisis and see the
following risks potentially impacting our activities:
-- Travel restrictions and quarantined employees may impact our ability to
keep our site operations and our internationally staffed service
operation vessels fully manned. This may over time impact the
availability of wind farms. However, we see no COVID-19-related impact on
availability so far.
-- Travel restrictions and quarantines may impact our suppliers' delivery of
critical components to projects currently under construction. We are in
close contact with all key suppliers and monitor the situation daily. Our
construction projects continue to progress according to plan and with
embedded contingencies that, to a certain extent, can mitigate potential
delays. And currently, we do not see any permits, consents, tax credits,
offtake agreements, etc., in relation to our construction projects being
at risk due to delays.
-- Our combined heat and power plants in Denmark remain fully operational.
Supply logistics remain stable and we are approaching the end of the
heating season, so we see little risk of not being able to honor our
heating supply commitments.
-- The negative economic impact of the global crisis increases credit risk
on key suppliers, counterparts, and customers. However, the majority of
our income is rooted in strong investment grade state-owned or
state-guaranteed entities and, to a lesser extent, utilities and
corporates, which is why we assess the credit risk as being contained.
Furthermore, a significant proportion of our trading activities is
conducted on a collateralised basis. The policy responses seen in our
core markets will help mitigate the risk of default among suppliers and
-- In the most affected markets, the crisis has led to a decline in the
demand for power. So far, power demand in our core markets is much less
affected, and we cannot detect any changed pattern in the occurrence of
negative wholesale power prices. In a scenario with more subdued power
demand, we could potentially see an increase in the number of hours with
negative prices, but as we are partly compensated, we assess the overall
impact to be limited.
-- As to our development pipeline, we remain dependent on public authorities
to progress the permitting and consenting of awarded projects and
development sites, and to progress the development of regulatory
frameworks, including tenders and auctions. Such processes could be
exposed to risk of delays due to travel restrictions, people working from
home, and government stakeholders being occupied by crisis management.
-- Likewise, our signed divestments could be at risk of delays as approval
processes must be conducted virtually. However, all divestments remain
well in progress and we expect potential delays to have limited impact.
While we recognise the significantly increased global uncertainty, our
business model remains resilient, our operations remain stable, and we
maintain our financial guidance for 2020.
To continue to manage the COVID-19 situation, we will keep our Corporate
Crisis Management Organisation in place for the time being. We will
provide updates to the market if we see material changes to the current
situation. If not sooner, we will provide the next update in connection
with the release of our Q1 report on 29 April 2020.
In connection with the publication of this company announcement, a
conference call for investors and analysts will be held on Wednesday 25
March 2020 at 15:00 CET.
Denmark: + +45 32 71 49 98
UK: + 44 0800 408 7373
US: + 1 877 890 2416
International Access Numbers: www.speakservecloud.com/dial-in-numbers
Room number: 233127
Participant PIN: 8564
The conference call can be followed live at:
For further information:
+45 99 55 95 52
Allan Bødskov Andersen
+45 99 55 79 96
The Ørsted vision is a world that runs entirely on green energy.
Ørsted develops, constructs and operates offshore and onshore wind
farms, solar farms, energy storage facilities, and bioenergy plants, and
provides energy products to its customers. Ørsted ranks #1 in
Corporate Knights' 2020 index of the Global 100 most sustainable
corporations in the world and is recognised on the CDP Climate Change A
List as a global leader on climate action. Headquartered in Denmark,
Ørsted employs 6,500 people. Ørsted's shares are listed on
Nasdaq Copenhagen (Orsted). In 2019, the group's revenue was DKK 67.8
billion (EUR 9.1 billion). Visit orsted.com or follow us on Facebook,
LinkedIn, Instagram and Twitter.
-- 25MARCH2020_Company announcement_Covid-19 update
(END) Dow Jones Newswires
March 25, 2020 03:16 ET (07:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.