Core Insights - Ørsted A/S has signed an agreement to divest a 50% ownership interest in its 2.9 GW Hornsea 3 Offshore Wind Farm to Apollo Global Management for approximately DKK 39 billion ($5.6 billion), marking a significant step in Ørsted's capital recycling strategy [1][4]. Financial Details - The transaction includes around DKK 20 billion payable at closing, consisting of a DKK 10 billion equity purchase and a DKK 10 billion construction payment, with the remainder linked to future project milestones [3]. - The total project investment remains within Ørsted's DKK 70–75 billion estimate, and the transaction is expected to have a neutral lifetime EBITDA effect, not impacting Ørsted's 2025 earnings or gross investment guidance [3][4]. Strategic Implications - This divestment is part of Ørsted's broader partnership and divestment program aimed at freeing up capital for reinvestment in new renewable projects, following a rights issue earlier this year to support ongoing offshore wind development [4]. - The deal contributes to Ørsted's plan to complete the world's largest contiguous offshore wind zone, Hornsea 1, 2, and 3, totaling over 5 GW of installed capacity off the Yorkshire coast [4]. Market Context - Hornsea 3, located 160 km off northern England, is expected to generate enough clean energy to power more than 3 million UK homes once operational, highlighting the continued institutional investor appetite for large-scale renewable infrastructure [5]. - For Apollo, this acquisition expands its footprint in global clean energy assets amid increasing private equity interest in European offshore wind [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 $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]

Core Insights - The Hai Long offshore wind project is one of Taiwan's largest offshore wind farms, with a total installed capacity of over 1 GW and equipped with 73 Siemens Gamesa 14-222 turbines, making it one of the largest offshore wind farms globally [2][3] - DWT and its subsidiary OutSmart have been awarded a contract for continuous system monitoring, fault management, and grid operation monitoring, solidifying DWT's position as the largest independent service provider in Taiwan [1][4] - The project is developed by Mitsui & Co., Northland Power Inc., and Gentari International Renewables, indicating a strong international collaboration [3] Company Operations - DWT Taiwan is expanding its control center capabilities to ensure continuous monitoring of wind turbines and substations, supported by OutSmart's Operations Control Center in Emden, Germany [4] - The scope of services provided by DWT will grow in line with the construction progress of the Hai Long project, enhancing their ability to provide comprehensive system and grid monitoring [5] - OutSmart has extensive experience in offshore wind farm operations, having managed the Gemini OWF in the North Sea since 2015, which contributes to their expertise in real-time monitoring and maintenance coordination [5]

Core Viewpoint - BP and JERA have decided to discontinue their joint offshore wind venture, JERA Nex bp, in the US due to significant political pushback and challenges in the offshore wind sector [1][2][3]. Group 1: Project Details - The planned 2.5 gigawatt (GW) Beacon wind farm off Massachusetts is directly impacted by the decision to cease operations [1]. - The joint venture, JERA Nex bp, was established in December 2024 and officially launched in August 2025, with a combined net potential generating capacity of 13GW [3][4]. - The venture includes 1GW of installed net generating capacity, a development pipeline of 7.5GW, and secured leases amounting to 4.5GW [4]. Group 2: Challenges Faced - The US offshore wind industry is experiencing significant challenges, including supply chain disruptions, inflation, and political risks, particularly for projects in federal waters [2]. - The current political environment under President Donald Trump has led to a halt in several offshore wind projects, creating uncertainty for future developments [1][2]. Group 3: Future Plans - Despite ceasing operations, JERA Nex bp will retain lease rights for the Beacon project and will monitor the situation for a more favorable time to restart development [3].

Core Insights - NYK has signed a long-term time-charter agreement for an offshore wind crew transfer vessel (CTV) with Oga Katagami Akita Offshore Green Energy LLC, a joint venture involving JERA Nex bp Japan LLC, Electric Power Development Co., Ltd, Tohoku Electric Power Co., Inc., and Itochu Corp [1] Group 1 - The vessel will be constructed by Kosaba Shipbuilding Co., Ltd in Kamaishi City, Iwate Prefecture, and will operate along the coasts of Oga, Katagami, and Akita, marking Japan's first offshore wind project in general sea areas [2] - The design of the vessel is based on a model from Northern Offshore Services AS, Europe's largest CTV operator, with modifications for domestic construction, which will enhance the shipbuilding industry and create jobs [3] - The vessel will be managed by Japan Offshore Support Co., Ltd, a joint venture between NYK and Akita Eisen Co., Ltd, which will also train and hire local crew, contributing to the growth of offshore wind projects and regional revitalization [3]

Core Insights - DEME has successfully delivered its new wind turbine installation vessel, Norse Wind, at CIMC Raffles Shipyard, marking a significant advancement in offshore wind installation capabilities [1] Group 1: Vessel Features - The Norse Wind is designed to install the next generation of offshore wind turbines, indicating a focus on future-proofing installation technology [1] - The vessel incorporates advanced technology and sustainable design features, which enhances its installation capability and aligns with industry trends towards sustainability [1] Group 2: Industry Implications - The delivery of Norse Wind reflects the growing demand for advanced offshore wind installation solutions, as the industry shifts towards larger and more efficient wind turbine technologies [1]

Core Insights - The offshore wind sector is facing significant challenges, leading to project cancellations and strategic restructuring among major companies [1][3][6] Group 1: Project Cancellations and Financial Impacts - Ørsted canceled the construction of a wind turbine installation vessel for the Hornsea 4 offshore wind farm, paying $110 million in compensation due to rising costs and construction risks [1] - Equinor abandoned its plans to invest in Vietnam's offshore wind sector, marking a significant setback for the country's green energy ambitions [2] - Cadeler upgraded its 2025 revenue forecast to EUR 588 million to EUR 628 million, boosted by termination compensation [4] - Seatrium's contract with Maersk Offshore Wind, valued at $475 million, was terminated, leading to a nearly 15% drop in its shares [5] Group 2: Market Dynamics and Growth Projections - The global offshore wind sector is experiencing supply chain constraints and policy volatility, which are hindering growth [3] - The U.S. offshore wind sector is facing policy headwinds, with the Trump administration canceling approximately $679 million in project funding [7] - Europe remains the largest offshore wind market, accounting for 92% of the floating offshore wind market, while the Asia-Pacific region is projected to grow at a 156% CAGR through 2030 [7]

Core Viewpoint - Ming Yang Smart Energy is establishing the UK's first fully integrated offshore wind turbine manufacturing facility in Scotland, with an investment of up to £1.5 billion and the creation of 1,500 jobs, potentially increasing to 3,000 in later phases [1][2][6] Group 1: Project Overview - The project is considering various sites in Scotland, with Ardersier Port as the preferred location, representing one of the largest industrial clean energy investments in the UK [2] - The facility will repurpose existing oil and gas infrastructure, facilitating a "just transition" for workers moving into the renewable energy sector [2] Group 2: Strategic Importance - Ming Yang accounted for 31.3% of global new offshore wind capacity in 2024, and the facility will anchor key parts of the offshore wind supply chain in Britain [3] - The facility will produce turbines for both UK and export markets, positioning Scotland as a strategic base for Ming Yang's European operations [3] Group 3: Technological Advancements - The "Ocean X" 16.6 MW dual-rotor floating turbine, the largest of its kind, could reduce offshore wind costs by up to 30%, potentially lowering household energy bills [3] Group 4: Government Engagement - Ming Yang is in discussions with UK and Scottish Governments, Great British Energy, and other financial institutions, with plans subject to final UK government approval [4] Group 5: Strategic Partnerships - The announcement follows a strategic partnership with Octopus Energy to deploy affordable offshore wind capacity and integrate advanced software solutions [5] Group 6: Project Phases - Phase 1 involves up to £750 million for a nacelle and blade manufacturing plant, with production starting in late 2028 [6] - Phase 2 will expand to support floating offshore wind technology at scale in UK waters [6] - Phase 3 aims to create an industrial ecosystem for producing control systems, electronics, and other key components [6]

Group 1 - Seatrium, a shipbuilder, reported that Denmark's Maersk has terminated a $475 million contract [1] - The contract was for a nearly finished offshore wind vessel [1] - The vessel was intended to work on a project off the coast of New York [1]