Ørsted Q1 profit drops 46% despite strong offshore wind output
Danish renewable energy company Ørsted reported mixed financial results for the first quarter of 2026, with higher renewable power generation and stronger operating earnings offset by impairment charges and tax-related impacts. The company’s net profit declined sharply even as offshore wind output reached record levels.
Profit for the period fell 46% year-on-year to DKr2.62bn from DKr4.89bn in Q1 2025. Ørsted said the decline was mainly due to non-cash tax effects and impairment charges of DKr1.37bn linked to elevated long-dated US interest rates. In the corresponding quarter last year, the company had recorded a small positive impairment reversal.
Despite the lower net profit, the group delivered improved operational performance during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 8% to DKr9.54bn. EBITDA excluding new partnerships and cancellation fees, which the company uses as a measure of underlying performance, rose 11% to DKr9.54bn.
The growth was supported by a 27% increase in offshore wind generation, driven by the ramp-up of the Borkum Riffgrund 3 and Greater Changhua 4 offshore wind farms, along with slightly above-normal wind speeds. The offshore wind segment contributed DKr7.5bn to EBITDA, up DKr1.2bn from the same period last year.
Ørsted also reported a significant improvement in cash generation. Cash flow from operating activities rose to DKr6.54bn compared to DKr634m in Q1 2025. Lower gross investments of DKr8.18bn also helped improve free cash flow, which stood at negative DKr890m versus negative DKr10.18bn a year earlier. Net interest-bearing debt declined 69% to DKr21.29bn.
The company said progress continued across its 8.1GW offshore wind construction portfolio. In the US, the Revolution Wind project delivered first power to New England, while turbine installation started at Sunrise Wind near New York. In Europe, monopile foundation installation began at the Hornsea 3 project in the UK and the Baltica 2 project in Poland. Commissioning of the Greater Changhua 2b and 4 offshore wind farms in Taiwan remains scheduled for Q3 2026.
Group President and Chief Executive Officer (CEO) Rasmus Errboe said the company achieved record renewable energy generation during the quarter while continuing to deliver secure power supply amid global energy market pressures.
Ørsted maintained its full-year EBITDA guidance at more than DKr28bn, excluding new partnerships and cancellation fees. Gross investments for 2026 are projected at DKr50bn–55bn.
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