Interim report for the first quarter 2020

Strong Q1 results - Seite 2

Our offshore development projects in the US are moving forward, although at a slower pace than originally expected due to a combination of the Bureau of Ocean Energy Management’s (BOEM) prolonged analysis of the cumulative impacts from the build-out of US offshore wind projects, and now also COVID-19 effects. The two earliest projects in our pipeline; the 120MW Skipjack project in Maryland and the 130MW South Fork project in New York, are most exposed to the risk of delays. For Skipjack it is no longer realistic to receive the ‘Notice of Intent’ from BOEM in due time to meet commissioning date in late 2022. Therefore, we now expect to commission the wind farm approx one year later. For the South Fork project, which was also planned for a 2022 commissioning date, we have received the ‘Notice of Intent’, but have not received a confirmed permit schedule from the federal government outlining when the ‘Construction and Operations Plan’ (COP) will be received. This combined with impacts from the COVID-19 related shutdowns in New York, will also very likely delay South Fork to beyond 2022.

For our largest awarded US development projects – Revolution Wind, Ocean Wind, and Sunrise Wind – with expected commissioning in 2023 and 2024, we also see increased risk of delays. We have submitted our COP applications for Ocean Wind and Revolution Wind and are awaiting BOEM to issue their ‘Notices of Intent’, outlining the timeline for COP approval. For Sunrise Wind in New York, we are currently unable to progress our offshore site surveys due to COVID-19 restrictions, which adversely impacts our COP application process. So, for these three projects, we need more visibility on the path to COP approval before concluding whether commissioning in 2023-24 remains realistic. We expect to have more clarity after summer.

Ørsted is a strong company with a resilient business model, and we are in a much less vulnerable position than many other sectors that are deeply impacted by the crisis. However, the impact of COVID-19 will have material ripple effects throughout all economies and sectors, and we cannot be complacent about its potential impact on us. Thus, we remain vigilant about the unfolding crisis and have identified a number of risks that potentially can impact our activities, including the ones listed in our company announcement on 25 March.