Core Insights - Ørsted has completed a DKK 60 billion rights issue and sold a 50% stake in its 2.9 GW Hornsea 3 offshore wind farm, enhancing its balance sheet and supporting its long-term business strategy [1][2] - The company reported a 21% decline in EBITDA for the first nine months of 2025, primarily due to the absence of one-off cancellation fee reversals from the previous year, although net profit increased by 7% [3] - Ørsted plans to cut around 2,000 positions by 2027 to streamline operations and enhance competitiveness as it transitions from a build-out phase to asset operation [5] Financial Performance - For the first nine months of 2025, Ørsted's EBITDA was DKK 18.6 billion, down from the previous year, but excluding one-off effects, it remained stable at DKK 17 billion [3] - Net profit for the same period rose to DKK 6.5 billion, while offshore generation earnings increased by 5% to DKK 16.1 billion, driven by higher turbine availability and new capacity from the Gode Wind 3 project [3] Strategic Moves - The rights issue and Hornsea 3 divestment are part of Ørsted's strategy to reinforce liquidity and fund an 8.1 GW offshore wind construction portfolio [2] - The company is making steady progress on its 8.1 GW under-construction offshore wind portfolio, with expected annual EBITDA run rate contributions of DKK 11–12 billion once operational [4] - Following a challenging 2024, Ørsted is resetting its growth strategy towards core European markets, with the rights issue signaling renewed investor confidence in its offshore wind leadership [6][7]

Ørsted, the world’s largest offshore wind developer, reported on Wednesday a loss for the third quarter amid soaring impairment charges as the offshore wind industry faces backlash in the United States and rising costs in all geographies. Ørsted, which has recently completed a huge rights issue equal to some $9.35 billion, booked a loss of $262 million (1.7 billion Danish crowns) for the third quarter, compared to a profit of $796 million (5.17 billion crowns) for the same quarter of 2024. Impairment los ...

Core Viewpoint - Ørsted has agreed to sell a 50% equity stake in its Hornsea 3 offshore wind farm to Apollo Global Management for approximately DKr39bn ($6.5bn), which aligns with Ørsted's capital management strategy and supports its partnership and divestment program [1][2][3]. Group 1: Transaction Details - The deal involves an initial payment of DKr20bn, which includes DKr10bn for the share purchase and DKr10bn for construction costs, with the transaction expected to close before the end of 2025, pending regulatory approvals [2][5]. - Apollo will fund the remaining construction costs as the project reaches specific milestones [1][2]. Group 2: Project Significance - Hornsea 3 will produce enough electricity to power over three million UK homes and will increase the total installed capacity of the Hornsea zone to more than 5GW once operational [3][4]. - Ørsted will continue to manage the construction of Hornsea 3 and provide long-term operations and maintenance services [4]. Group 3: Financing and Partnerships - Senior financing for the transaction will be led by Apollo-managed entities, with support from banks including BNP Paribas, ING Bank, Lloyds, and RBC Capital Markets [5]. - Co-investors La Caisse and PSP Investments are also involved in the transaction through equity and debt financing [5].

Core Insights - Ørsted, the world's largest offshore wind developer, has agreed to sell 50% of its flagship Hornsea 3 offshore wind farm in the UK to Apollo Global Management for $6.5 billion, aiming to raise funds for other projects amid rising costs and political pressures [1][3] - The sale is part of Ørsted's strategic asset divestiture plan, reflecting a significant shift in the company's approach to stabilize its financial situation despite relinquishing part of its premium asset [1][3] Ørsted's Strategic Moves - The sale of Hornsea 3 is a critical milestone for Ørsted, as it seeks to address financial challenges exacerbated by rising interest rates and political uncertainties, particularly in the US market [1][3] - Ørsted's CFO highlighted that Apollo's involvement brings infrastructure expertise and scalable capital, which is essential for the company's ongoing projects [1] Apollo's Investment Strategy - For Apollo, this transaction is part of a broader strategy to become a key capital provider in the European energy infrastructure sector, having completed a record $17 billion in energy infrastructure deals in Europe this year [2] - Apollo aims to offer long-term, flexible capital solutions, further solidifying its role in the energy transition [2] Industry Challenges - Ørsted has faced significant challenges due to macroeconomic shifts, particularly in the US, where rising project costs led to the abandonment of two major projects [3] - Political opposition, notably from former President Trump, has intensified concerns over the offshore wind sector's viability in the US, prompting Ørsted to raise $9 billion through equity offerings [3] Importance of Hornsea 3 - Despite the sale, Hornsea 3 remains a vital component of the UK's energy strategy, contributing to the government's goal of decarbonizing the power system by 2030 [4] - With a planned capacity of 2.9 GW, Hornsea 3 is set to become the largest offshore wind farm globally, expected to generate enough electricity to power approximately 3 million homes [4]

Funds managed by Apollo agreed to invest $6.5 billion in Ørsted's Hornsea 3, the world’s largest offshore wind project https://t.co/96QNDeTnJ5 ...

Core Insights - Apollo has agreed to invest $6.5 billion for a 50% stake in Ørsted's Hornsea 3, the world's largest offshore wind project, which includes funding for half of the remaining construction costs [1][2][3] Investment Details - The Hornsea 3 project will have a capacity of 2.9GW, enough to power over 3 million UK households with renewable energy [2][3] - The investment structure includes an initial $3.25 billion upon closing, with the remaining $3.25 billion to be funded as the project meets construction milestones [3][4] Partnership Dynamics - Ørsted will manage the construction and provide long-term operations and maintenance services for Hornsea 3 [2][3] - Apollo's expertise in infrastructure and capital solutions is a key factor in Ørsted's decision to partner with them [4] Previous Investments - Apollo has a history of significant investments in European energy infrastructure, including a €3.2 billion investment in the German energy grid and a £4.5 billion commitment to EDF's Hinkley Point C nuclear power plant [5] Financing Structure - The senior financing for the Hornsea 3 project is led by Apollo-managed entities, with underwriting support from major banks including BNP Paribas and ING Bank [4]

Core Viewpoint - Apollo has announced a $6.5 billion investment for a 50% stake in Ørsted's Hornsea 3, the world's largest offshore wind project, which will significantly contribute to renewable energy generation in the UK [1][2][3] Investment Details - The $6.5 billion investment includes both the acquisition price for the 50% interest in the joint venture and a commitment to fund 50% of the remaining construction costs [1] - Upon completion, Hornsea 3 will have a capacity of 2.9GW, enough to power over 3 million UK households [2] - The investment is expected to close before the end of 2025, with approximately $3.25 billion to be invested upon closing and the remaining amount to be funded as the project progresses [3][4] Strategic Importance - Ørsted views Apollo as a valuable partner due to its ability to provide long-term, comprehensive equity and financing solutions for large-scale infrastructure projects [4] - The partnership is expected to enhance energy security and support the UK's net zero ambitions [3] Recent Activities - This investment follows a series of large-scale capital solutions provided by Apollo for European energy infrastructure, including a €3.2 billion investment in the German energy grid and a £4.5 billion financing commitment for EDF's Hinkley Point C nuclear power plant [5]

Financial Data and Key Metrics Changes - Adjusted operating income was $6.2 billion before tax, while net income was -$0.2 billion, impacted by net impairments mainly due to lower long-term oil price outlook [4] - Cash flow from operations after tax was strong at $14.7 billion year to date, with adjusted earnings per share at $0.37 [5][12] - Cash flow from operations for the quarter was $9.1 billion, with total cash and cash equivalents exceeding $22 billion [12][13] Business Line Data and Key Metrics Changes - Production increased by 7% year-over-year, reaching 2,130,000 barrels per day, with a 9% growth on the Norwegian Continental Shelf (NCS) [9] - E&P Norway adjusted operating income totaled $5.6 billion before tax, while E&P International results reflected lower production but also lower depreciation [10][11] - Renewables business operating costs decreased by around 50% compared to the third quarter last year [6] Market Data and Key Metrics Changes - Liquids prices were lower than the same quarter last year, while average gas prices were higher, particularly in the U.S. [10] - U.S. onshore gas production was up 40%, capturing higher prices, while U.S. offshore production increased by 9% [9] - International production outside the U.S. decreased due to temporary stops and divestments [9] Company Strategy and Development Direction - The company aims to maintain production levels on the NCS until 2035, focusing on smaller discoveries and quicker developments [82] - A more active role in Ørsted is being pursued, with plans to nominate a candidate for the board to enhance collaboration [8][17] - The company is cautious about further capital commitments in offshore wind due to current industry challenges [18] Management Comments on Operating Environment and Future Outlook - The management highlighted the volatility in energy markets due to geopolitical unrest and trade tensions, but expressed confidence in the company's solid balance sheet and strong production [5] - Future capital distribution will prioritize cash dividends and share buybacks, with a competitive approach to capital allocation [61][62] - The outlook for the global gas market remains tight in the short term, with significant LNG projects expected to come online [34][36] Other Important Information - The company reported net impairments of $754 million, primarily due to lower long-term oil price assumptions [12] - A tragic fatality occurred at Munkstad, emphasizing the need for continued focus on safety [8] Q&A Session Summary Question: What is the outlook for unit depreciation charge in Norway? - The unit depreciation charge is up about 13% from Q2, driven by new assets coming online, particularly Johan Castberg, and a gradual reduction is expected going forward [15][16] Question: Can you elaborate on the decision to take a board seat in Ørsted? - The company aims to take a more active role as a shareholder to improve collaboration and create shareholder value, especially during the current downturn in the offshore wind industry [17][24] Question: What factors influenced the change in MMP guidance? - The guidance was changed to around $400 million per quarter due to market conditions and previous divestments of gas infrastructure assets [22][23] Question: What is the status of the Peregrino disposal? - Peregrino is currently producing over 100,000 barrels per day, with a divestment expected to close in two phases, totaling a headline transaction value of $3.5 billion [43][44] Question: What is the latest on the Rosebank approval process? - The permit was taken away due to Scope 3 emissions concerns, and the company has submitted a response that is currently in public consultation [76][78] Question: What is the outlook for the NCS supply chain? - The company is optimistic about maintaining high activity levels on the NCS through smaller discoveries and increased exploration efforts [82]

Financial Data and Key Metrics Changes - Adjusted operating income was reported at $6.2 billion before tax, while net income was -$0.2 billion, affected by net impairments primarily due to a lower long-term oil price outlook [4][12] - Year-to-date cash flow from operations after tax reached $14.7 billion, with adjusted earnings per share at $0.37 [5][13] - Cash flow from operations for the quarter was $9.1 billion, with total cash and cash equivalents exceeding $22 billion [12][13] Business Line Data and Key Metrics Changes - Production increased by 7% year-over-year, totaling 2,130,000 barrels per day, with a 9% growth on the Norwegian Continental Shelf (NCS) [9][10] - Adjusted operating income from E&P Norway was $5.6 billion before tax, while E&P International results reflected lower production but also lower depreciation [10][11] - Renewables business saw operating costs decrease by around 50% compared to the same quarter last year, with expectations of a 30% annual decrease [6][12] Market Data and Key Metrics Changes - Liquids prices were lower compared to the same quarter last year, while average gas prices increased, particularly in the U.S. [10] - U.S. onshore gas production rose by 40%, while U.S. offshore production increased by 9% year-over-year [9][10] - International production outside the U.S. declined due to temporary shutdowns and divestments in Azerbaijan and Nigeria [9] Company Strategy and Development Direction - The company aims to maintain production levels on the NCS through 2035, focusing on smaller discoveries and quicker developments [82] - A more active role in Ørsted is being pursued, with plans to nominate a board candidate to enhance collaboration and shareholder value [8][17] - The company is cautious about further capital commitments in offshore wind due to current industry challenges, while still developing existing projects [18][33] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing geopolitical unrest and market volatility impacting pricing and trading conditions [5] - There is an expectation of a tighter gas market this winter, with storage levels around 83%, which is 12% below last year [34] - The company remains committed to capital distribution, with a cash dividend of $0.37 per share and a share buyback program totaling up to $1.266 billion [8][13] Other Important Information - The company reported net impairments of $754 million, primarily due to lower long-term oil price assumptions [12] - A tragic fatality occurred at Munkstad, emphasizing the need for continued focus on safety [8] Q&A Session Summary Question: What is the outlook for unit depreciation charge in Norway? - The unit depreciation charge is up about 13% from Q2, driven by new assets coming online, particularly Johan Castberg, and is expected to gradually reduce going forward [15][16] Question: Can you elaborate on the decision to take a board seat in Ørsted? - The company aims to take a more active role as a shareholder to improve collaboration and create shareholder value, especially during the current downturn in the offshore wind industry [17][24] Question: What factors influenced the change in MMP guidance? - The guidance was changed to around $400 million per quarter due to market conditions and the divestment of gas infrastructure assets, which had a $40 million quarterly impact [21][22][56] Question: What is the status of the Peregrino disposal? - Peregrino resumed production on October 17th, and the divestment of the 60% ownership position is expected to close in two phases, with a total transaction value of $3.5 billion [43][44] Question: What is the latest on the Rosebank approval process? - The permit was taken away due to Scope 3 emissions concerns, and the company has submitted a response that is currently under public consultation [76][78]

Financial Data and Key Metrics Changes - Adjusted operating income was $6.2 billion before tax, while net income was -$0.2 billion, impacted by net impairments mainly due to lower long-term oil price outlook [3] - Cash flow from operations after tax was strong at $14.7 billion year to date, with adjusted earnings per share at $0.37 [4][11] - The company distributed $5.6 billion to shareholders, including $4.3 billion from buybacks [11] Business Line Data and Key Metrics Changes - Production increased by 7% year-over-year, reaching 2,130,000 barrels per day, with NCS production growing by 9% [7] - E&P Norway adjusted operating income totaled $5.6 billion before tax, while E&P International results reflected lower production but also lower depreciation [8][9] - Renewables results showed high project activity but significantly lower business development costs, with operating costs for renewables down by around 50% compared to the previous year [4][10] Market Data and Key Metrics Changes - Liquids prices were lower than the same quarter last year, while average gas prices were higher, particularly in the U.S. [8] - U.S. onshore gas production was up 40%, capturing higher prices, while international production was down due to temporary stops and divestments [7][8] Company Strategy and Development Direction - The company aims to maintain production levels on the NCS until 2035, focusing on smaller discoveries and quicker developments [75] - A more active role in Ørsted is being pursued, with plans for a board seat to enhance collaboration and shareholder value [16][22] - The company is cautious about further capital commitments in offshore wind due to current industry challenges [17][30] Management's Comments on Operating Environment and Future Outlook - The management highlighted the volatility in energy markets due to geopolitical unrest and trade tensions, but expressed confidence in the company's solid balance sheet and strong production [4][11] - Future capital distribution will prioritize cash dividends and share buybacks, with a competitive approach to capital allocation [56][58] Other Important Information - The company reported net impairments of $754 million, primarily due to lower long-term oil price assumptions [10] - The Peregrino asset was shut in but resumed production, with plans to divest a 60% ownership position [40] Q&A Session Summary Question: What is the outlook for unit depreciation charge in Norway? - The unit depreciation charge is up about 13% from Q2, driven by new assets coming on stream, particularly Johan Castberg [13][15] Question: Can you elaborate on the decision to take a board seat in Ørsted? - The company aims to take a more active role to improve shareholder value and believes that a closer collaboration will benefit both Equinor and Ørsted [16][22] Question: What factors influenced the change in MMP guidance? - The guidance was changed to around $400 million per quarter due to market conditions and divestment of gas infrastructure assets [19][20] Question: What is the status of the Peregrino disposal? - Peregrino resumed production and is expected to divest 60% ownership, with a transaction value of $3.5 billion [40] Question: What is the outlook for the global gas market? - The short-term market appears tighter than expected, with significant LNG projects coming online, but demand from Asia remains healthy [32][34] Question: What is the latest on the Rosebank approval process? - The permit was taken away due to Scope 3 emissions concerns, and the company is currently in public consultation with the regulator [68][70]