Orsted receives Citi upgrade to ‘Buy’ following strong offshore results

Citi has upgraded the Danish offshore wind specialist Orsted from ‘Neutral’ to ‘Buy’. This decision follows the company’s half-year financial results, which provided a clearer outlook for the resumption of shareholder dividends and a return to capital discipline.

Orsted reported strong operational performance in its offshore segment, with sea-based electricity generation increasing by 23% year-on-year to 11.2 terawatt-hours (TWh). The company’s EBITDA, excluding new partnerships and cancellation fees, reached 15.0 billion Danish Kroner (DKK) for the first half of the year, with 5.44 billion DKK attributed to the second quarter.

Despite these operational gains, the company faced challenges in the US market, leading to impairments that impacted net profit. Net profit for the second quarter fell to 0.7 billion DKK, compared to 3.4 billion DKK in the same period last year. While the stock has risen 16% since the start of the year, it remains approximately 19% below its 52-week high reached in May.