Equity research report Ørsted - an analysis of the key value drivers and their projections

Abstract

In line with rising awareness globally for reducing carbon emissions, energy has seen a significant shift to renewables. The report at hand gives an overview to the change and within this context under takes a fundamental analysis and projection of Ørsted’s key value drivers –focusing on the dominant offshore business. It forecasts generation and installed capacity growth, subsidised and wholesale electricity prices as well as load factors on the revenue side on a market-by-market basis. To this end, it maps out the company’s entire project pipeline until 2025andmakes assumptions on Ørsted’s individual regions’ development there after. More over, it projects CAPEX and OPEX ratios per Mega watt on the cost side. These inputs are used to examine the NPV/IRR profitability for exemplary offshore wind parks in every country market–UK, Germany, Denmark, Rest of Europe, USA, and Asia–and for the overall valuation of Ørsted.