Market Overstates Orsted's Execution and Political Risk
With 8.9 gigawatts of gross offshore wind capacity and 5 GW of net capacity at the end of 2023, Orsted is the offshore wind leader: an industry that it pioneered in the 1990's.
Orsted A/S ORSTED
Bulls Say, Bears Say
Bulls
The hike of the ceiling price for 2024 UK offshore wind auctions and the extension of capital allowances are positive for the largest offshore wind market in the world, outside of China, where Orsted is the leader. The capital allowances will increase the value creation of Hornsea 3.
Bears
The business plan presented in February 2024 hinges on material divestment including the farm-down of Hornsea 3. Failing to deliver them could force Orsted to resort to a rights issue.
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News
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Orsted to Install Tesla Battery Energy Storage System in U.K.
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Equinor and Ørsted New York State Offshore Wind Projects Advance
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New Jersey to get $125 million from Orsted after offshore wind projects halted
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New Jersey to Receive $125 Million From Orsted After Offshore Wind Projects Halted
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Orsted Backs 2024 Guidance After Earnings Decline
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Orsted to Sell French Onshore Wind and Solar Business to Engie
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Orsted Names Rasmus Errboe Deputy CEO and Chief Commercial Officer
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Orsted Offloads $300 Million Share of Four U.S. Onshore Wind Farms to Stonepeak
Trading Information
- Previous Close Price
- DKK 398.90
- Day Range
- DKK 395.70–406.30
- 52-Week Range
- DKK 248.00–624.60
- Bid/Ask
- DKK 403.20 / DKK 403.50
- Market Cap
- DKK 170.53 Bil
- Volume/Avg
- 296,701 / 553,435
Key Statistics
- Price/Earnings (Normalized)
- 8.91
- Price/Sales
- 3.21
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- —
Company Profile
Danish company Orsted was named Dong Energy until the sale of all its oil and gas fields to Ineos in 2017, soon after the May 2016 initial public offering. Orsted is now focused on renewable assets, especially offshore wind farms. It operated 8.9 gigawatts of offshore wind farms at the end of 2023. The United Kingdom is the biggest country of operation, ahead of Germany and Denmark. The group intends to develop its footprint outside Europe with projects in Taiwan and in the US Orsted also operates 4.8 GW of onshore wind and solar assets concentrated in the United States. The company is also involved in more traditional utilities business like conventional power plants and gas supply, but these activities are noncore.
- Sector
- Utilities
- Industry
- Utilities - Renewable
- Stock Style Box
- Large Growth
- Total Number of Employees
- 8,900
- Website
- https://www.orsted.com
Competitors
Valuation
|
Metric
|
ORSTED
|
IBE
|
SSE
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.91 | 13.13 | 11.17 |
Price/Book Value | 2.90 | 1.44 | 2.17 |
Price/Sales | 3.21 | 1.69 | 1.92 |
Price/Cash Flow | 14.61 | 7.69 | 7.04 |
Price/Earnings
ORSTED
IBE
SSE
Financial Strength
|
Metric
|
ORSTED
|
IBE
|
SSE
|
|---|---|---|---|
Quick Ratio | 1.02 | 0.60 | 0.76 |
Current Ratio | 1.37 | 0.77 | 1.10 |
Interest Coverage | −3.35 | 4.98 | 8.21 |
Quick Ratio
ORSTED
IBE
SSE
Profitability
|
Metric
|
ORSTED
|
IBE
|
SSE
|
|---|---|---|---|
Return on Assets (Normalized) | −2.42% | 4.79% | 6.37% |
Return on Equity (Normalized) | −10.60% | 14.40% | 20.08% |
Return on Invested Capital (Normalized) | −2.73% | 7.51% | 9.01% |
Return on Assets
ORSTED
IBE
SSE
Utilities - Renewable Industry Comparables
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1-Day Chart
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