DNNGY - Earnings call transcript Q3 2020

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Operator

Hello, and welcome to the Orsted Q3 Earnings Call.

For the first part of this call, all participants will be in a listen-only mode, and afterwards, there will be a question-and-answer session. Today, I'm pleased to present CEO, Henrik Poulsen. Please begin.

Henrik Poulsen

Thank you, and good afternoon, everyone and welcome to this earnings call. financial year performance related despite strong quarter the challenges. its the of the continued and in operational third Orsted persistent COVID-XX

a Adjusting partnership onshore of by DKKX.X decrease effects, income EBITDA But operation impacted for aware, for significantly Our X, X. EBITDA we third and partnership last by Hornsea increased quarter construction Hornsea offshore increased fully year. was remains DKKX.X & X wind Sage the X%. compared by across ramp-up good year Borssele billion, third to billion, to seen quarter driven to EBITDA a projects and regions. from asset are Draw, our XX% Creek. progress in X, quarter as different by from XX% farms operational Plum the you amounted last on of base have and third

of into XXX-megawatt & offshore the share to distribution, year. power installed last of we we very comfortable green impacts in renewable year, to up the of UK have expected, the X the our of DKKXX related global an Netherlands. a QX. with COVID-XX energy transformation In on As QX DKKXX from investments reached X gross of the divestment in important the and at this profit XX% continued residential we some beginning farm remain in year-to-date note, we to company. the million billion milestone In performance, Based DKKXX our tune see last of quarter the in billion wind turbine adverse DKKXXX our September, strategic third with Danish full-year customer, solid Borssele billion that concludes and of The city DKKXX XX% divestment reached to the billion. businesses. essentially EBITDA On our same guidance in light generation August, completion the

the high pandemic, Borssele installation X & the When entire and Netherlands. impressive an farm the our which operational the robustness offshore to the turbine during achievement during took wind safety in fully in is dedication the standards. April, capabilities that process first the in X place back installed largest EPC be largest the demonstrates second quite world will the turbine With our fourth and quarter, of

We been farm. potential wind investors interest exploring of Borssele the have X among farm-down X for the & a

to to become signing continue partners our strong We of upfront structured therefore have a next of additional during X its opportunities. us Farming half X Borssele will a invest demand assets down Borssele growth enable crystallize green wind first offshore initiated in with year. & value see and farm-down in expected to and

is project to-date, have the X Creek commissioned Creek is Western commissioned Creek for also our next to Borssele In its Haystack late-stage largest decision and quarter base. will third operational the which and greenfield during and to it expected project expands is The onshore September, portfolio also in adjacent wind project quarter on onshore schedule Nebraska. just onshore year XXX% is farm acquired commissioned second we wind also The we took expect the like continues was In final farm pandemic. further XXX-megawatt Plum portfolio. is our successfully constructed decision we further project. is our of West the further area area. XXX-megawatt be investment X onshore farm our investment on XXX-megawatt Our during SPP the be the onshore wind we on in September, wind momentum. ERCOT strengthen XXX% asset operational the the wind XXXX. commissioned development The it our PTC, and for we eligible budget, business final project project SPP third and In wind strong fourth in eligible since took diversifies October, Haystack our PTC. farm Willow and in to Trail Willow It ahead & the March.

Western of PV Willow at in we combined up in a very of Onshore. was now and addition and to Trail set Renescience operations we under the lift solar the X-gigawatt commissioned happy the wind have expansion Creek, onshore Haystack, operation plant commissioning And UK mid-October, construction. successfully about In of Northwich of the after criteria. Orsted pre-defined With remain or plant

we technology. Renescience, treatment the performance, will we of continue commissioning this and the innovative potential milestone while of now plant's to important broader explore commercial reached monitor With we waste an the

And Moving Netherlands. develop we have would would us in fertilizer with have significant energy on the XXXX. wind of market Orsted's around foothold the X XXXX per nearby The plant in from forces ammonia to hydrogen October, of coming joined tons production the X we hydrogen world's Yara, renewable XXX-megawatt XXX,XXX renewable Borssele farm. wind production. & Subject a offshore or company, for growth abate for business hydrogen the over potential opportunities investment power offer to XX,XXX Sluiskil early a green plant of year could established replace be more per electrolyzer on confirmed Yara's the offshore In decision renewable supply to ammonia to a dedicated final The late case, hydrogen, taken in a renewable hydrogen with is aim than that at COX fossil-based tons a leading generate it to year. based we believe will decades.

heavy others has cornerstone XXX further valuable with transport pilot UK. future stimulate view, mature need for supply. project Denmark renewable Copenhagen, potential Northern aim in both industry and development platform to get the WESTKUSTE In decarbonize the experience. insights the the evolve the provide hydrogen is and the wind continues project source in It hydrogen and the Sluiskil within Gigastack pipeline like and become fuels. four projects business industry. renewable Germany hydrogen Our the decade and HXRES for will and project renewable project may a the alternative the greenfields will and a partnership The hydrogen fifth fossil-based energy the renewable at sectors project to within a being should in and project, our offshore be to help competitive to our hard-to-abate of heavy These

sustainable for that with to like continued Nipper thinking, is and looking I strategic planet, build of my welcoming Lastly, successor Orsted's expansion January a dedication very hands. to Directors help in I'm Orsted. Board highly appointed would as to Mads the highlight you Xst. good very a forward future and of as is much on know skills global Mads our as accomplished Mads, leader his visionary CEO

get where and Impact earlier our we give set that for this have Ocean update Notices the this two-year the permitting NOIs an the has US of we had to Energy now Wind June following our receive determined expected projects. to application approval few put Wind's next for BOEM federal anticipated operations Intent Environmental offshore until from for Wind plan operations not indications BOEM Environmental published. the will itself development a in to expecting to being Since November construction starting slide Interior the Vineyard the have Impact XX. At to NOIs the back have on and Impact within received seen a clarity the and Vineyard thereby, awaiting Statement, wind stage portfolio. positive four, as BOEM regulatory Department weeks. is process of this on for from for I at progress NOI published been on the of were turn advanced happen year, Since An we construction Vineyard clock our summer. Environmental signifies This and our stage, around Final to Supplemental Statement projects. the Management plan. the track BOEM's complete, want supplement further Draft then given hold Let's Bureau ultimate Statement guided of our We expectedly deadline been

consequence, we a XXXX, must further into early permitting As and constitute significant progress being does pushed delay. a this foresee

awaiting permitting nautical nautical layout uncertainty will the X of mile to addition on the whether turbine Northeast X process, around we're BOEM mile. also pursue by in consensus confirmation developer In the

we sense its the BOEM is Wind of project record issue December clarity November Vineyard final XX. until on on is hope won't layout know sooner, likely, the for of project While expected to it XX. Subsequently, we for decision a decision increasingly the

highly permitting assuming the within that Wind Sunrise process Revolution appears Even and Ocean and Skipjack starts expected the likely construction Wind, moving Wind, delayed it previously XXXX next beyond quarter years. the XXXX be year, first will

and flexibility For meantime, other projects we have make have on we come all to in timeline the able been good some back to. milestones which the project in I'll progress four some

schedules. from is However, we BOEM, timeline a until cannot there re-baseline our construction clear

the targets federal making process of only in process than to Wind Environmental was BOEM October schedule For Impact Vineyard project August, record in that advance permitting other permitting and South permitting Vineyard it given the of the in Final the Fork, a Statement. formally XXXX, reinitiated project the Wind ahead decision the

advantage expect managed uncertainty US the permitting, South a permitting around of have the the we updated wind With of additional offshore commission in Fork the number of In by and portfolio midst the our XXXX. areas. to time of the schedule, end we to now taken progress

for we permits onshore connect to Long have center O&M our Wind transmission state a the York the in the been Jefferson. in to New good Fork state to five South secured East have the In from location agencies Our Hampton including mature, cite Island, support cable Port decisive project grid.

on growth solid the can further and inevitably its satisfactory value a offshore US Moreover, and Offshore, will the mentioned. on negative I project we other matured in on quite continue as made delays, with kind project being contract qualified with that of progress critical many that have support parts solutions, is and economics. to of service Despite remain vessel chain confident the including Edison deliver that potential as help logistics value the the our which of see operations upgrades US impact of permitting Eversource creation. components economics, our good creation permitting basis, We our certain we Jones And we portfolio signed wind. announcement vessel the have supply Act long-term Orsted delays we portfolio have Chouest new-build first And and in critical project US.

Turning slide to five.

worked the farm we on just quarter, operational undergoing the XX are the renewable fully of offshore the Let Dutch an EPC this projects. project the Borssele farm, wind the installed to first ensure X the households. commission to Dutch extremely be expect the and project. wind and the and turbines. wind delivered in construction the foundations now energy the what down. XX-megawatt you the again and give before Hornsea can has shipyard demo & first wind At is in of where and In was Dominion waters The update the and final Changhua topside mentioned, They during farm, of overall supply constructed both we be will being handed end safe farm. At and delay the Hornsea we at now & the the to of in installed have X project world's project the harm installation was Hornsea construction the efficient of completed economics. X will Due will do hard September, last the closed as I At COVID-XX. power, shipyard for have most is largest Once team testing mid-October, remains over me million still construction completed more farm work and and X The by to the date the for Virginia the one Energy. the is Xa, commissioning pandemic, contractors US project federal and continues cables not [ph] construction wind foundations offshore to affected sea site's commissioned. substation X, affect on be to no preparation up XXX running the X.X-megawatt schedule. the offshore Singapore, project export Siemens At commenced. turbines, total, once X a in Greater Gamesa

to six and the construction Turning slide for bioenergy. onshore on an projects in update

and contracts of the have half on our key have of projects, Trail At issued. been construction in pilots Permian been and continue module our we has progress Energy Muscle installations, At to Center, half been wind the Shoals, proceed at completed very Western more see installed. notice onshore. two the have executed onshore good to than and projects We Haystack,

to commissioned test. plant, delayed of last the performance earlier, we been our after due successfully been have with facility. which now completed now the having sorting Renescience has process, resolved As The has commissioning significantly plant the upgrades the of mechanical primarily mentioned

per plant the of During as instead is year now the of per the This the year originally plant been capacity XX,XXX modification tons and planned. has waste downsized. means tons of upgrades, that maximum XXX,XXX

developments to update in go and offshore. upcoming auctions market Let's and on an seven slide

We the and momentum awards than development XXXX, global awarded in US based XX-gigawatt offshore have first step-down wind the in in growth continue being see ever more Europe, in Asia-Pacific. significant seen auctions the in to a time very of the XXXX. After we and on number for

months, all-time However, XXXX of high. XX over to coming new XX-gigawatt, awards we global could the and a will reach up see

be We State submitted quarter of place XXth and issued the of window cumulatively. RFP, procure the in in our approximately fourth around this together XXXX, bid due York which is US New Maryland, New expect must are up three auction three after auctions year, in in forward bids by We're with take XXXX. year-end. is with to auctions X.X-gigawatt them to the Jersey. second we open X.X-gigawatt of on this in partner, New procurement expected second December outcome were and their looking rounds year York bids the all known auction. have October to one the submission. submitted in and Eversource, subsequent Maryland and able Maryland's Earlier now Results to

to second also first for this quarter auction of up XXXX, Jersey in fourth offshore during the X.X-gigawatt hosting half expected year. The with for deadline scheduled will be awards New been bid December procurement their XXXX. has wind the

Rhode expect place these Maryland US to addition and this In Massachusetts, auctions three XXXX. take year, Connecticut auctions we in during to Island,

to regarding other investment up criticism local Before in moving supply chain. jobs regions, on our recent brought local Jersey want the New the the in and I to address

committed Let to into Jersey. fully $XXX me remain that investing stress New we million

project process Federal like five-year inevitably However, auction. a to following a consenting as previously large Ocean off is the Wind the seven-year mentioned, award the delays push of investment.

New get Wind our supply project, the before and BOEM facility preliminary to turbine local our our chain a partner, we signed supply have delays needed on continue dependent in layout progress working still sets to development investments. offshore this Despite the be with to high-level of as partner supply be our manufacturing Jersey, from well facility state-of-the-art monopile conditions in construction with have chain NOIs, we and This wind The will the development chain Ocean the joint on visibility and on We confirmation start track met. which stakeholders factory. Jersey, to to condition our terms keep for of need Together South finalize agreement certain first we on as the are the hard US. monopile EEW. be in precedents, recently in our key this to

in to guidelines Looking The Yurihonjo for awards the in year towards quarter next with the is deadline draft round expected bid year Asia-Pacific, for the first Japanese issued this Noshiro, fourth areas. the Choshi, auction open in for half auction November and submission first have expected year. next been and

development, capacity work. a auction the development South permitting initial pre-assess offshore such expect through as and on mainly of In working comprise and around are markets to greenfield we measurement wind data Korea, the We X.X-gigawatt. early-stage

consent information to the in site order December was on X developments recent bird impacts. our to of Moving on to study Hornsea in XXst postponed further Europe,

threat Secretary we habitats. primary X the significant of the Climate Following for remains to specifically the we Kittiwake, And evidence-based which productivity. to towards Hornsea energy. closely a breeding stakeholders the implementation pleased key would structures, postponement, the Kittiwake are focuses nesting contribution renewable need develop that Plan increase national artificial worked will on plan for designed make the change biodiversity of recognizes with Hornsea have onshore X. Compensation and for State The robust

over and the growth by communities covered by projects awards while to to offshore government accelerate expediting the individual award projects to be more coastal energy sustainable progress to and in and project fuel work continue a most advanced country's expected advanced two These will June UK submitted which greener and together In and receiving the its by UK by of the welcome the in wind jobs industry the X It from pipeline. selected deployment our beyond, carbon projects Polish new back law in for plans offshore forsted and been clean to way is over least the XX-gigawatt opportunity back delivering target consent. by roadmap. leader to and Boris technologies skills a beginning Minister, two million power capacity projects X.X-gigawatt could be November to achievable net-zero X.X-gigawatt, With by offshore implemented the wind optimistic Polish both is for XXXX. and the We remain wind potential of over currently as end offset tons to energy. the totaling making in companies, low huge sheet UK December innovative world-class announced this wind million Johnson the have is announcement with March this of pipeline include in month, the from most the draft at into market supply in provide COX regulator. the an Polish clean the underpins industry. is year. Prime domestically this world the the will Offshore ambitions, XXXX and aims homes future. do term of the finalized PGE. and parliament of the wind build UK their that The Up government, expected overseas grant government we The wind Hornsea challenging, the We being It XXX is if achieve by approved legislation about UK's XX.X-gigawatt the be in XXXX. to cost-effective X.X-gigawatt, to UK offshore non-binding Applications lifetime. must to essential the of part see chain of but XXXX the of

X conclude to expect the binding PGE in process we wind farms, the and the regarding year. X and negotiating the agreements with this Baltica are by Baltica still of transaction the end offshore We of

In Denmark, during in and hand first the Netherlands, and XXXX. France CfD awards, over to tenders addition to With Marianne, round Germany will Polish I please. fourth expect the now UK the the we word this,

Marianne Wiinholt

Thank good from Henrik, me afternoon and too. you,

points DKKX.X for EBITDA slide through billion The activity the farms last QX wind average X.X of the on and an XX% last driven speeds operating [ph] adverse by ramp-up will QX were availability billion. QX DKKX.X excluding to the the year. above XX%, EBITDA start mainly year This of X. the expected in year. an billion, last increase above the QX high Let's power and to where partly and DKKX.X was QX per described, ramp-up increased an compared from In We the normal speeds due X The wind construction quarter DKKX.X during for amounted of totaled eight, portfolio I Hornsea COVID-XX in DKKX.X go below I was construction 'XX. EBITDA XXXX. and billion. decrease Offshore at was of of agreements realized availability percentage last second. second Hornsea per slightly one X. a offshore, X was meter earnings the quarter XX% X above Borssele decrease in related due impacts. the X.X just to by QX offset Wind to & -- the generation by meter of increased billion, third year, EBITDA

which The National In to lower market prices. the related were generation for with COVID-XX agreements related in Springs, to portfolio led Willow Texas million of balancing lower-than-expected which from August negative per Coastal of especially Creek adverse QX has unusually This last earnings prices due the and tariffs speeds from amounted seen partnerships power Tahoka, updates XXXX, the Sage to by XXXX. with year. operational related minor agreements for regarding DKKX.X primarily offset ramp-up led was peak QX in power prices the Earnings have approximately high Lockett Creek Willow some Draw, high Plum in at a from came in and EBITDA electricity. to in billion Grid, In hours QX DKKX.X points billion Cash DKKXX less negative very 'XX, with X.X following the interest-bearing acquittal DKKXX.X sale in auxiliary to of billion markets of amounted gas The the at and by from at DKKXX.X of to billion the and in to due Danish prices in totaled year tax EBITDA by DKKXX.X divestment achieved more was last profit higher billion, Proceeds QX to last driven timing. partly flow to power If Danish up on offset and to activities the the were Creek. costs, DKKX.X light customer, and distribution, and then QX Wind the a to in related to residential from second. partly depreciations to our nine UK lower period was EBITDA construction infrastructure field. of on by the slightly billion Tyra was recycle power distribution, by to billion construction slide than the our Elsam the billion, billion services bioenergy The the at customer Willow power of finalized Earnings divestment businesses in flow of from EBITDA of the and was fixed demand turn billion debt. in SEAS-NVE. 'XX. due generation businesses QX gas which increased earnings projects. plants primarily across was in from the from from to year. was higher our offset same and decreased our operational Gas operating provision continuing operations to the impacts of performance mainly in billion, farms. versus DKKXX.X offset which one The and DKKX.X in case contribution residential and for which light the Hornsea storage, Free normal percentage EBITDA billion. second, partners DKKX.X Virginia due markets due below QX We gain 'XX increase line lower year, from X.X to shutdown construction construction Availability portfolio net the lower X. last mainly to by 'XX. DKKX.X DKKX.X a meter wind at ROC impact net QX cash was from was reversal financial from city amounted lower quarter, our 'XX. the a power came and quarter. compared DKKXXX onshore, driven last in per CHP we city by billion QX Wind DKKX.X equity higher compared margins line revaluation This XX%, earnings, year. and and higher meter

the Energy gross Hornsea our X offshore investments Greater our projects, Our billion, Ocean well Western primarily Creek. the Permian X, for as projects quarter to X as totaled Borssele Willow & related and Shoals, Trail US, & Wind Changhua and onshore Center, X, DKKX.X Muscle Xa, in

of XXXX to quarter DKKX.X cash in the flow and primarily Our I amounted end at the the net reflected the described. QX debt positive billion, decrease just

O&G Additionally, back in of XXXX. INEOS million we the have received from regarding $XXX deferred divestment proceeds

shows ratios. which and XX, financial non-financial slide to our turn Let's

of to months FFO customer stood ending net impacted metric September. the debt for power by from was The credit XX positively distribution divestment key the in XX% Our period the and adjusted business. the at proceeds metric

capital Our gain 'XX. by significantly period in compared last XX the to which The over employed X impacted same in was farm-down EBIT due the the lower decrease year was at 'XX QX period, QX from in months Hornsea return on came to X%.

to of our COX due emission meet offshore on remain to grams XX Our scope well wind. X in we of XXXX. first equivalents than continued less and greenhouse months our intensity build-out in track of kilowatt to continued hour gas and And decline onshore X XXXX the per target nine

Our carbon minor with target is in by remaining be emissions any to carbon-neutral offsets. neutralizing XXXX

prevent and on safety utmost injuries. to high and do our agenda, always, is we As our accidents

of nine months was a which recordable the XXXX, the total rate development X.X, compared to to amounted During first injury 'XX. positive

to in is of DKKXX financial recaps full-year a and well to as as lower target DKKXX DKKXX.X nine and investments billion totaled our and and investment EBITDA in long-term our months. expected the gross XXXX, are X.X We EBITDA XX or billion X.X guidance. estimates reiterate our billion gross year XXXX for investment guidance, rate policies. Slide to XXXX. and Gross amount first XXXX this Our

least XXXX we QX big Borssele growth, We not we Xa, that, X with employed X Changhua long-term share financial of & return please. expect to on and capital comfortable contracted and US now X, driven quarter, by onshore up for be targets, profits. projects. with & Operator, our and open including investment And will And Hornsea X, questions. remain offshore a EBITDA

Operator

This happy concludes answer to have one questions. question This you can per from go Please Bank. call comes our your Our ahead. will Johansen than Danske question we're no participant presentation, only later of from and question. respect Instructions] for go now the the first end then and to back Please X:XX. to queue second Kristian line [Operator

Kristian Johansen

Yes, thank you.

are have it of ones? on switch I specifically, upgrade chosen any a an if which you of remember particularly, is to for some to a can to Is and do do the a delay options substantial question essentially there run mitigate your my these So, you -- projects delay and your where a this, turbine. into here. What equipment, regarding the US you projects the potential on return of X-megawatt worsens mitigates possible

Henrik Poulsen

you, Thank Kristian.

et have obviously speak, total chain including the parts of the logistics we, are spending solutions, We solutions, optimize been cetera. supply so here harbor that given chain extra all to the our solution, packages time our to supply and

and So some we spending from benefits that. the we are time seeing are

the topic turbines. working the on we upgrade of are Specifically, to also turbines,

working been the going now for to DX XX-megawatt were and to upgrade turbine on have well. know working The the turbine do the also turbine have we turbine, off. we are working the from the as upgraded upgrade up in already Gamesa, that we Northeast, You until in Siemens a Mid-Atlantic that solution where we

is that the financial So to delays. the permitting meaningful opportunity from offset impact a

Kristian Johansen

able do be offset And to fully impacts? expect you to the

Henrik Poulsen

so the many moving be end of I'd all Kristian, to a that back working we say that little we're start this, are of next many, these Right it some seeing Well, parts of permits I towards first there permits. mean, we'll off offset an to year. hesitant when we get it, in it can quarter these of comes issued ultimately assumption now, being

that's acceptable economics planning us. the on still we spreads and value our to assumption, based see So current being being assumption, meaningful that and planning

So --

Kristian Johansen

that's Okay, quite clear. Thank you.

Henrik Poulsen

you. Thank

Operator

And the Securities. Bisztyga from line next Please go question comes ahead. BoA from Peter of the

Peter Bisztyga

my thanks hi, question. taking Yes, for

the on elements already tell if going qualitative purely in guess, sort you've think decision-making ones, the I are award participated auctions of Just ones the and, series know in. have process? of you US, New price-based the you and which in I in next York to which us Could will be terms any, the of still

Henrik Poulsen

Peter, projects broadly, asking particular are more you the global the US portfolio? about entire or in

Peter Bisztyga

about US specifically comment Japan, in also Poland in could and I but maybe I asking contest? guess, that on guess particular, if was you I

Henrik Poulsen

to. credibility, broader parameters, being creation be would local saying in no, is we typically the content, cetera. of it record, New holistic I Jersey, mean, US, et taking New way see New more also track that where England see investment York, simplified towards more auctions the Yes, more the a at happy local job Maryland auctions skewed price, view emphasizing

government a high-level also the experience Stakeholder will So Japan, In it XX% a would comes be feasibility, to et a have also price, competitive terms be is going mechanism. the a it criteria and XX% of parameters And different what project the is initial award the the that the have without auction the reliability, Poland, local management and of normally up segmentation impact. XX-XX, they broad X.X-gigawatt given it that a you at to now slightly US to model a issued what it's non-price. will directly looking economic sort and way expect will guidelines be at allocation of cetera. and in of they When non-price be, so specified markets.

offshore the more So we be amongst Baltica contest this be Baltica most X to on awarded projects. would it will And beauty them. mature Polish X count wind among and

Peter Bisztyga

Thank helpful. very Excellent. you. That's

Operator

from Please question the line of Deepa next ahead. And from comes go the Venkateswaran Bernstein.

Deepa Venkateswaran

integrated of able the the are line you expectation? going is offshore bid I every latest rumors Would transmission There do transmission a negative about be earlier mechanism or clarify to of broadly, you. on, project? you some And for a to kind model, of were the then on had and which so couple you for to you. so maybe prefer supportive UK. 'XX? you stick questions Thank current auction your expect what Thank single with

Henrik Poulsen

X, what saying the a not that type would at it Thanks, guess, the concession take be follow I I sort Round would even my expectation. certainly expect of X. be it the in to at, your to of format from Round payment CfD could format of It format to is looking of question, expectation we Deepa. that the When my comes of there structure you're is last it knowledge, the not we least

transmission continues In as certainly offshore terms of integrated offshore optimizing transmission, the build-out broader the through I there accelerate rationale of build-out for UK a wind. see thinking can and being the to

integral the transmission it benefits of important hand, On out generation see competition, transmission assets the offshore wind significant assets the part separating don't being these building this an other to the is make part as building to start so charge exposed from assets, the and of two. in you do of developers we

make keeping but transmission integrating cases, these some I the them rounds. sense, thinking will that it infrastructures, still exposed to from still other cases, know single-line but that make sense in start transmission in about of the competition we will So, to some CfD believe

Deepa Venkateswaran

Thank you.

Operator

Bellander Please comes question line go Nordea. the ahead. next the from And from of Marcus

Marcus Bellander

A US. Yes, the thank regarding question you.

can US. in that you that US? realistically you. wondering in auctions what of also participate build -- And Thank seven we doing the your elaborate that of sort to showed leases that could many if you You pipeline next seabed of you're just given two upcoming the I'm have how left? you the on And are in -- those of slide the

Henrik Poulsen

to lease I very I you're it's Marcus. over right, successful absolutely these Yes, our mean, going on early a we get amounts auctions capacity of down number awards come might fill that much hands to Obviously, the left. of mean, we there still if across can we we're seven areas, but on how is have we a scenario up Thanks, time capacity meaningful and win. lease

gigawatts filling would several offshore before of we So start awards we're talking wind up.

expect rounds I consider us. will us majority lease coming for a would we auctions. be that There I sell these positive of join would in US. ultimately out, So challenge to vast the up obviously the Should

our Today still over margin lease lease eye delayed, there on the more been we capacity. US, it but by of wide constantly position time, they we're As you keeping be a know, of course, an in have inventory capacity. will when And, the rounds. have most advantageous to comes lease

can the months all these of player We only are to XX months. XX basically the auctions join that next over

the lease only refilling of eye the a in US, keep broadly. we have on time, but pretty US as point. strong an position starting over capacity But, in So course, a more our we not

Marcus Bellander

you. thank Okay,

Operator

Alberto Please And the comes from line next the of go Goldman from question ahead. Gandolfi Sachs.

Alberto Gandolfi

My that Afternoon, my and of do again to will can these you please you to for that XX-gigawatt? constraints. slide encounter, balance bid us let's sheet XX-gigawatt in your as effectively is a you try and XX-gigawatt give return many can Can some to go There's helpful you you if auctions to call. us over to your just say, as if to bit. And many your headroom allows year threshold of very to maybe going a and going remind for, have seabed XX-gigawatt gigawatt thank coming obtain you're a seven. strategy where you how the tell taking call bid or out you little is

you'd understand returns mindset about open so think and perhaps to the equity, trying to you. I'm trying the in I'm to to issue So awards to try be Thank logic your are more bidding? if is rotate maximize even to good your here the if

Henrik Poulsen

-- speak, can the likely bid, Marcus, out, the in unless we but we most actually all question scenario. can so US Thanks first for these sell we position a of to projects be lot, are doesn't unless to where by asked back question to we a To where of seem bid Alberto. that the

on the in consent X, at So would Round UK X join these off could lease Hornsea We we of areas. current auctions from bidding expected all for be Hornsea an our based US we X.

may those the we so and We of course, we call you and TEPCO be joining been Polish a is auction we to of by end And the have Changhua PGE of it be confirmed is The X with to but X, in JV 'XX. have join tenders. agreement in towards that take on. transition in and award, end projects. being back a that, which our then for what Taiwan centralized place the yet, And hasn't XXXX, X the expectation so with through hope would potential, remainder joining the then Baltica Japan, will Choshi and

all Germany, don't obviously. so being offered government, by So, France, being and a that Netherlands -- really to sites are the the that's really we have not local that -- site have

back you go should comes them, good very not terms of to majority to ways, other list our in all And balance prioritize We expect of one of I'm expect join vast join we that do of to may our have be so to do a say to to after join to chunk in these sheet the bid would auctions. to return can the decide efforts here, them. sometimes us it we'll these capacity, capacity every single of and So covering threshold. of this going auctions. the them. we but We

we will opportunity to as answer then answer to XX spread we the on top going are get go of to is long months. your value next as capital, So maximize satisfactory can over our we yes, the a cost awards of question, this after

Alberto Gandolfi

Thank you.

Operator

ABG. the next line go the ahead. And Please of from comes Blom question Casper from

Casper Blom

months or billion two A concerning Thank to XXXX, say. you've much. guidance so DKKXX very to done year billion, your DKKXX to-date. DKKXX.X XXXX the last you of billion for question

in the you're last year the distribution hand, negative guiding Last impact will of the LNG in 'XX, quarter So billion, DKKX.X effectively, QX you billion billion either. divested other DKKX.X then you've not on QX DKKX.X to the XXXX. did business, but

it your down earnings level? that is drive to is the Thank guidance what to you. So

Marianne Wiinholt

Yes, the…

Henrik Poulsen

Casper. you, Thank

will think Marianne take one. this I

Marianne Wiinholt

gains Yes, Yes, a RBC, gains rightly way US, significant storage the a have the not factors project don't construction then we thanks of have then other out fourth have. And construction then have we quarter but on the coming see you impacts that QX, these point the and in for activities we lot also uncertainty, production are in there costs in in quite had construction markets, in quite we will development cushion of project also the year. because divestment We partners. we the question. also several the on last for we have any normal

solid are So, a it is with. and bottom-up we estimate coming up

Casper Blom

be was here. little to there But agreement? a sorry pain very construction But Marianne,

Marianne Wiinholt

yes, yes. Yes, it million, DKKXXX around was

Casper Blom

then… but And, Yes.

Marianne Wiinholt

have we no yes, will yes. So, but --

Casper Blom

QX than Yes. on going new then in in more you DKKX Are saying business? that to basically developing spend offshore projects billion the you're

Marianne Wiinholt

give are you far not I'll you from. the but amount, not exact

have on project quite spend will Yes, you're development We in QX. a large right.

Casper Blom

Okay, thank you.

Operator

question… And the next

Henrik Poulsen

Marianne question, of working a said, But It's we're world fair have do bear Casper. opportunities DEVEX broad you to in we the the moment. significant set at very and expect on as a mind, around

now, market quite we into just extensive our efforts least looking the are opportunity right So not discussed. development

Casper Blom

us fair, then? level That's the means sort behind leave we just billion DKKX absolutely to need of

Marianne Wiinholt

year, this For yes.

Casper Blom

Yes, cool. Thank you a lot.

Henrik Poulsen

Thanks.

Operator

ahead. UBS. And the from comes go Arie next line Sam question Please of the from

Sam Arie

I been your so, be if the will and rather year, full-year I Hello might for I'm presentation. you always this you have results won't realize and if guess as again everybody, presenting not be, Henrik, you presentation. sure thank last next

thanks and all So special the to this thanks ones. previous time special

Henrik Poulsen

you. That's Thank you, be will Sam. right. the Thank This last one.

Sam Arie

lot learned from and having think maybe looking got actually, answer some I question already. apologize look I many Well, years of the over a I'm to us we've your that, presentations And kind for ask a Alberto were going for. said But think don't quite I them. of then the thanks we asked that

your of sizing bit out of? out that the leases a you the to stakes, you there everything XX-gigawatt next could you XX-gigawatt out fact going might XX-gigawatt in a a different a bit. the would you and XX-gigawatt not leases that suppose give do the So ask can I Is and for win of What some may some that if to time. pre-qualified Thank more gigawatts in to us win XX-XX the in have at way were you XX-gigawatt in and back total? maybe them maximum for and won year view cases, to or in right enough what market able is, to year could to figure try something theory the you. of we're adjusting next XX-gigawatt enough be this be to trying I and

Henrik Poulsen

that adding I'm something Yes, capacity tenders. lease X, ourselves. run US, we the can wanted the max could so look in for it's itself, even Japan, to be that centralized those a on have obviously, Poland, then for in if you then out But and sure few question, and have not Round would we would our you -- start Taiwan, add which assume sizable, current in you good Sam. gigawatt you max number, a numbers more UK maybe the

number So, a be would I it obviously, could become would create a it very a high would very which in scenario, unrealistic but number.

the single world to not point probably who you that's join look a have then, so. a But in slide and likely developer doing -- starting every strong these you of it's actually are the at bear So we for when outcome. seven, in mind have opportunities only that pretty one could

to go the this Alberto, going stay for definitely do scalability highlight to We're And the position and that's business of not we going are pursuing I disciplined. a to global as as said to I comes a So, just question crazy it we'll I to breadth it it, I opportunity. sign when we're unique in the our again that asked but by want things. think mean, platform of

value So question, answer for. maybe capacity. be hands know will get answered good quite the our the if Sam, whatever are you we I didn't I give looking you on, don't it creating that

please up. follow So

Sam Arie

remind X-gigawatts it's I I is suppose of XX-gigawatts a which quick follow-up the that's to maybe just -- how you many is exactly. UK, next recognize big it including for your the then. And no, a out do you that fine. no, gigawatts X that in to Hornsea No, difficult us event, can total pre-qualified take number, is? [ph] can that capacity 'XX relative the

Henrik Poulsen

Hornsea X be would X.X-gigawatt.

Sam Arie

X-gigawatt X.X-gigawatt the your X? best for in the the XX-gigawatt is UK UK you in to outcome However, -- Hornsea could the

Henrik Poulsen

Correct.

Marianne Wiinholt

Yes.

Sam Arie

Right, exactly.

very there. very leave I'll helpful. you that's much. Thank it Okay,

Henrik Poulsen

Thank you.

Operator

Morgan Rob And Pulleyn the line the from of from comes next ahead. Stanley. question Please go

Robert Pulleyn

installed construction go your I a, and does this on and afternoon. delays ones we b, construction maybe the capacity, potentially thank of and just your to for some as this Thank other that ask balance affect already you questions? would If scheduling win you a projects to US with to XX-gigawatts offshore may guidance -- the to good can you, you these window Could as the hope you. back try the company of comment of XXXX Hi, project have 'XX. the to 'XX to impact previous

Henrik Poulsen

feels 'XX, bidding and right portfolio. expected always timeline, When these shifting indicate little to 'XX. bit are 'XX that an risk not and Rob. full necessarily target. us, course, of When delays our we from for new some hand, now well are that on as that -- It's to But still a we comes flexibility target looking target visibility in potential auctions in there at full 'XX, could in visibility we construction to have in don't have our change it we to Thanks, the permitting. track the early it US, have on to XX-gigawatt project doesn't slip expectation, absolutely a we we into on we have still have timeline the the current -- bids, commitment we we don't scheduling, of like that into the other still build can't of is, these against obviously, that it given on given it into 'XX, out that I rule it

making the schedule we and submit was portfolio sure question, in if that know bids between to few quarters. that potentially I the don't new course, asking. what total enough the the of next current over if the answers we are, wins that Rob, we flexibility optimize have So new you're

Robert Pulleyn

who in shall portfolio in bidders that's at a just therefore say, the that US just the Actually, you. very very obvious the follow-up reassuring does. on construction have what it Would the mentioned you If the put disadvantage No, we may congestion versus the follow-up, in Thank the don't target. you of scheduling. same, to you I try your on interesting. perspective? much Thank

Henrik Poulsen

as it's to going disadvantage don't be I a think such.

be done construction take you what and that 'XX, towards If and will soon they timeline we're on different do. range broad from essentially portfolio if constructing our the we projects. the we think thereafter current very don't necessarily bids assessed relatively of could train had end will subsequent launch criteria, we of can next a now, of I I a offer the right submitting think competitors start

think I we this shape are in good regard. So, in

Robert Pulleyn

I'll Thanks Excellent. very much, Well, that's to over. great it and hear. turn

Henrik Poulsen

you. Thank

Operator

Please question go next comes from the of RBC. line And John Musk the ahead. from

John Musk

a Yes, question the we actually It's had way. hello, similar one just to everyone. in a

to clarify permitting ongoing. the the in issues US wanted are Just [indiscernible]? that

Henrik Poulsen

John. up, barely You're hear breaking know. I can don't you. I

John Musk

Is now, better I'll it any Apologies. probably not if -- all?

Henrik Poulsen

It's better. No, Yes. it's better.

John Musk

Yes.

current next the in months? last of XX issues into coming your months one-off build given with risk the there the situation XX over subsequent no the And months? again are of out this US the permitting the whether checking to in is Just issues happening we've seen a knowing is that bids bids, secondly, risk do you any few bids the view that

Henrik Poulsen

the long-term XX-plus offshore out designed. along impact and the understanding of Coast. that thanks, I through thought gigawatt felt of believe the it federal being really a Yes, is And, about legitimate and BOEM course, broader of what one-off sense believe No, John. need carefully in permitting firmed the that a all up for this is processes I is do building wind East

they has cetera, wind of the So, number on in that, decisions process expect start format concluded hopefully, environmental to I and process, whole of warranted, this much once projects. farm more I terms the running smoothly made of impact would and have key layouts, they've subsequent been soon, and a statement relatively think et obviously, permitting for everything

process it's for markets other the the happening regulatory to and new of through go also a norms So, We've process. early market framework maturing beyond the in whole that permitting stages. not in the this seen

to much bids we the things experience have is we submit run gave the once have take sufficient earlier, to the we start that we do that deliver you're to can as more in make that flexibility we we our that I timelines into So, that smoothly. in submitted bids yes, sure answer commit we past that, account And this on the to.

Operator

And Markets. of from Klaus Please question the comes Kehl go the from line Nykredit ahead. next

Klaus Kehl

XXXX, Markets introduced but Day Hello. Yes, to of since Capital Nykredit honest, from thought the addition be crazy Kehl hello, the a And it then, bit in I Klaus has expanded a market XX-gigawatts lot. at your Back quite in you back XXXX. ever was here.

as on see could So you bit elaborate how addition of today? this a you

Henrik Poulsen

doubled No, from growth two what offshore almost it's a XXX-gigawatt ago, that XXX-gigawatt XXXX, Capital have now by are back XXXX. good question, Klaus. counting outlook Since we to XX-gigawatt then, seen Markets Day exactly by that's years for we the wind

has the the over our expanding we're than pleased then. very much business developed at rapidly two-year obviously, is So And back time, the imagined more that we with period. market way same onshore

in going that's good a it and right do, to there to look I taking is what good there is something reason of will be very is is for look a capable working -- at So there Orsted. we team ambition the take with think is Nipper Mads for another at the -- the a hands that long-term

at XXXX. probably of of or I to think first it's during good look a that early XXXX half part a take time

our to much ambition So of agenda look be I and it's whether obviously to to own, course, run our it still think the that's on timeline. at take that is the again, process is needs pipeline. very a But going a but, XXXX Mads

Klaus Kehl

very Okay, much. thank you

Operator

from go the of line Bank. comes next from ahead. question Brand the James And Deutsche Please

James Brand

extra kind alkaline preferable, seems technologies, technology, electrolyzer that? be of but of Hi, cheaper in to versus projects, on on of but green alkaline PEM your your had had area Thanks. starting a increasing if expertise, the you necessarily green suppose got different good that flexibility debate not any afternoon. Thanks a Curious, one I on any to you're you've hydrogen getting is the views know it's for whether actually the given question views presentation. -- wondering [ph]. a involved some hydrogen. bit was given which I I those which get I that that, of PEM, over

Henrik Poulsen

early It's really to James. on us comment for it, too

four choice between on decisions But making it actually, developing the probably me We now. we until decisions. for at our be procurement will to start two are early five year, speak, technology alternatives. so, be more the And we projects too looking specific next would over of procurement start commenting we'll then, as

James Brand

thanks. Okay,

Operator

Elchin question comes And Mammadov of the go from Please from the Bloomberg next line Intelligence. ahead.

Elchin Mammadov

asset I rotation, Hi, a question have there. please. on

[ph] core business you asset selling impairment renewable have So on that Would moment. given I And your the Renescience you you afford finished the or one multiples and new consider waste-to-energy their the SSG space? for not finally. really side got is onshore project you. in not the it mean, project decent -- considered rotation technologies, pipeline at side, thank especially on buying geographies So, really to

Henrik Poulsen

there. you. we'll potential quarters once start to of Thank it to how from in waste technology behind [ph] spend assessment, forward next take out comes the and have the it, about longer-term and just formula the it that basically validating couple When of concluded on this we scope commercial thinking we'll Renescience,

around do more arms not get is yet. the waste-to-energy commercial a months answer So, potential of probably Renescience. just I couple quarters core need few We couldn't for a give you good a our us. business of to more that necessarily I like really a or recognize

On hand, a it's interesting very technology. the potentially other

want Europe onshore it very comes the that rotation, the including to that and/or not take for expansion asset business over it's we elsewhere, secret it the And sure interest could of make it. strategically, course, to be we're So, of onshore make of in most we time, pleased Asia. of with the a to us US. When

don't hand, the want We so, have on I no specific anything rule to other plans for out. doing

a want close we keep good these look open we way options don't a our could important If certainly But to we that to feel think at here. still of We're entering any around take a look with markets, urgency it. opportunities take emphasize would onshore would it. I we place and up, very have a the lot the US. But good comes opportunity over in if at growth it. we a time, of right we yes, in business find our

Elchin Mammadov

you. Thank

Operator

line go Please And a the Bernstein. we from have of ahead. follow-up from Deepa question Venkateswaran

Deepa Venkateswaran

taking for on follow-up. you US. actually the my It's Thank

any understand just I CapEx. impact how the of to they investing started So mechanics economics, the you've given wanted that and delay project the not

pay wanted next that's -- So a as as you tax particularly, does I are is delay? long and credits this there liable impact check or the So someone if to there something also to different and any have and perspective? year, was if and could power would that change from anything Thank administration, administration on the political current you. this a BOEM change from we pressure your

Henrik Poulsen

Deepa. Thanks,

decided been able going the for we qualification be even to tax portfolio both have Turbine. able turbines, upgrade and the upgrade when credit for also the And we mentioned credit GE maintain the to tax the maintain optimize even beginning the We for and Mid-Atlantic of this as to qualification call, in Northeast I will during of optimize now turbine. the have

such We haven't run our into delays any chain. from these liabilities as towards supply

a firm with But get so flexibility and course, also our penalties timeline, to to make or suppliers Of obviously, on you it makes life permitting to incur when the commitments not able schedule, are been any timelines. can't we've more have confirmed difficult exact maintain suppliers our liabilities. together eager don't so far, you

remain we to good to and far, or be everybody When comes it's I'm little is well. you going what in moment, bit so be is whether from at the do vague and the tend pressure one a position that better administration. here. asked administration, prefer it than a something other, So, CEOs as And this expect about being about vague the to they

under crisis. they're ever coming great economic administration. in communities need in really huge it wind COVID-XX coastal local opportunity think has of ahead I and boost, driving economic to of US than any huge, for offshore future it out It's growth a more need this the the going that a

administration a there no So, the whether doubt the the that or Trump a Biden see we is meaningful governors, tremendous it's in will wind very build-out from scenario. administration, offshore with state and support of a enthusiasm it's either and

Deepa Venkateswaran

economics is it not no out NPV I there your the of missing? the clarify, just impact credit out, or year getting is so shifting impacted there the delay your and Okay. a are where main something liabilities, exactly Henrik, if just of a is are I'm years because it's couple may tax that or

Henrik Poulsen

projects burn shifting, that NPV there is running. from keeping from impact and in There shifting, the an time rate underlying is keeping is from projects the the an impact an running,

Deepa Venkateswaran

I on. -- see the project the so and the okay, DEVEX teams and

okay. Okay, yes,

Henrik Poulsen

Exactly, exactly.

Deepa Venkateswaran

Okay, all right, thanks.

Henrik Poulsen

Yes, thank you.

Operator

And the from follow-up Please next line Nordea. Marcus go of from question ahead. is question the also a Bellander

Marcus Bellander

thank floating any to you I or had you've regarding lately any observations you made wind? have wanted revelations floating you. Thank Yes, ask regarding if just wind you.

Henrik Poulsen

it of eye to being But on not. are close we're you global tell more that engaged all developed. we're spending any We're and Marcus. on but we we close we I make a not are you the clearly, there different us, that previously, as an do that when had for in currently pipeline we we a it are the we'll how Thanks, on XXX-gigawatt I of a time actively sort eye excluding an technologies sure that whenever But tell project, time I've foundation of keeping spending technology keep on it. you couldn't revelation, the XXX-gigawatt a can than that want projects. we floating. there floating. going to to pursue certainly XXXX. to for attractive -- beyond have XXXX, to China, offers go how of And we of is by XXXX role technology that opportunity is believe small relatively in a much would fact still It's the much continue Mainland be be project, for estimate And

Marcus Bellander

you. Thank Understood.

Operator

question last the go UBS. a question is of the Arie Sam ahead. from line And also Please from follow-up

Sam Arie

has date about again, agreed in position that the I had there it to to it in can you Hi, a why there you. now agreement any to political onwards? just [ph], was Has no be government, that think other the stake would that check ask to Thank majority remember which -- its change under you maybe a constraints I about position that's Thank I extended? wanted the what's that be discussion government one has XXXX maintain the of And this company. on -- still end but been -- now written in agreement what we that latest in XXXX. the Denmark been Henrik, its agreement? government expectation the specific end you. I the My from wanted the would changing remember is quite able be and with I at lapsing And from it or topic

Henrik Poulsen

up in of timeline agreement. at The agreement the agreement, my with ownership, the impression quite It -- feel think political for no discussion that parties stake. set I that opening revisit clear state Sam. Thanks, was good a that behind this a political XX.X% about by the fact I'd they about sense appetite they stand the political for potential XXXX there agreement. I is majority the is

whether soon. other, state could certainly and I So, that now one personal but take personal to hope change on ownership for you is take right my you anytime of the expect be wrong my majority the it, shouldn't here, any

a to going it's number to of stay for come. years think I

Marianne Wiinholt

agreement, decision It wasn't date is another it taken. And but then XXXX. the just in was just the end it in continues mentioned until a year

Sam Arie

very Right, clear.

well, you of next. and comes whatever we thank And Henrik. Okay, and best wish thank you, luck with again, congratulations, you

Henrik Poulsen

we have we can much, you with checking so the up. I'm other Sam. [ph] operator, wrap it questions, Thank so just

Operator

you hand no are remarks. further to closing questions. back There I'll it for

Henrik Poulsen

Well you And Appreciate of questions, if for all as you. team thank should very were great to you then, thank more joining. answer hesitate much the all please IR always, have the questions. Okay, don't them. you

shareholders, expressing was indeed Orsted, earnings confidence my the privilege all very of keeping of for a analysts also day. gratitude and appreciate have Orsted the CEO great you, always has Thank employees much, this to it Board the team, be you past I'll been guys It As I you to the privilege call years. and of deepest real of has and, toes. not your least team and of exceptional management my really over all and last tenure, Directors, on the my continued during Orsted part eight conclude course, our been as stay support the rest of and an a team me and the by safe,

Operator

the Thank all now for call. you This concludes attending. conference

You may your disconnect now lines.

Ørsted A/S (DNNGY) 28 Oct 202020 Q3 Earnings call transcript