- Ørsted discontinues Hornsea 4 project due to increased costs and risks.
- Expected break-away costs are DKK 3.5 to 4.5 billion in 2025.
- EBITDA impact is projected at DKK 3.0 to 3.5 billion.
- Capitalised construction costs of DKK 0.5 to 1.0 billion will be written down.
Project Discontinuation
Ørsted has decided to halt the Hornsea 4 offshore wind project in the UK due to rising supply chain costs, higher interest rates, and increased risks in construction and operation. These factors have heightened execution risks and reduced the project's value creation, leading Ørsted to stop further spending and terminate supply chain contracts.
Financial Impact
The decision is expected to result in break-away costs of DKK 3.5 to 4.5 billion in 2025. The EBITDA impact is projected to be DKK 3.0 to 3.5 billion, including a write-down of offshore transmission assets and a provision for contract cancellation fees. Additionally, capitalised construction costs of approximately DKK 0.5 to 1.0 billion will be written down.
Future Considerations
Despite the discontinuation, Ørsted retains the seabed rights, grid connection agreement, and Development Consent Order for Hornsea 4. The company plans to explore future development options that are more value-creating for shareholders.
Guidance Unchanged
Ørsted's previously guided EBITDA for 2025, excluding new partnership agreements and cancellation fees, remains at DKK 25-28 billion. The gross investment guidance for 2025 is also unchanged at DKK 50-54 billion.
