Danish energy firm posts profits as electricity and gas prices rocket

Danish company Ørsted said on Wednesday its energy sales increased by 54 percent in 2021’s third quarter, citing hikes in gas and electricity prices as the driving factor.

Danish energy company Ørsted posted large profits in 2021's Q3 due to high gas and electricity prices. The company wants to ramp up sustainable production by 2030.
Danish energy company Ørsted posted large profits in 2021's Q3 due to high gas and electricity prices. The company wants to ramp up sustainable production by 2030. Photo: Mads Claus Rasmussen/Ritzau Scanpix

The commercial division of Ørsted, Bioenergy & Other, reported a 6.6 billion kroner profit in the third quarter of this year, a 54 percent increase.

Operating profits meanwhile rose to 1.2 billion kroner in Q3, according to the results.

Gas prices are six times the normal rate and electricity three time more expensive than normal, the company said.


“(The large profits) are due to extraordinarily good results from our power stations and high revenues from our gas businesses,” Ørsted writes in the results.

Although increasing gas and energy prices have given Ørsted strong results, the company, which has invested in wind and solar power, has not grown overall.

For the entire Ørsted company, operating profits in the third quarter dropped by just under 400 million kroner to 3.4 billion kroner.

That is because a relatively low amount of wind reduced the amount of energy produced by Ørsted’s wind farms.

Earlier this year, the Danish company published a plan to quadruple its position on sustainable energy by 2030.

That includes building wind and solar power farms to produce 50 gigawatts of power.

Contracts signed by the company so far can ensure 18 gigawatts of sustainable production, Ørsted said in its published results.

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Denmark and Baltic countries plan ‘seven times more’ offshore wind energy

Denmark and other nations bordering the Baltic Sea will announce on Tuesday a plan to dramatically boost offshore wind energy by 2030. 

Denmark and Baltic countries plan 'seven times more' offshore wind energy

Today, just under 3 gigawatts are generated in the Baltic Sea, about half of which is Danish energy. An additional 1,100 to 1,700 offshore wind turbines will be needed to bring the total energy capacity to nearly 20 gigawatts in 2030.

A joint agreement to reach these levels in coming years is to be announced by participating countries on Tuesday, according to newspaper Politiken.

The newspaper reports a draft declaration it has seen in relation to the agreement, which will be presented at a summit at the Danish prime minister’s residence, Marienborg, north of Copenhagen on Tuesday.

READ ALSO: Denmark keen to join with Baltic countries on wind energy

Should the amount of additional energy reported by Politiken be produced, as many as 22 to 30 million households could see their energy needs covered by wind power.

Prime Minister Mette Frederiksen talked up the importance of wind power in comments to Politiken.

“The war in Ukraine and climate change are being met with now. We have two crises on the table at the same time. We need to speed up green energy conversion and we need to free ourselves from Russian fossil fuels,” she said.

Frederiksen is participating in the summit on behalf of Denmark. Senior officials and leaders and from Germany, Poland, Sweden, Finland, Estonia, Lithuania, Latvia and the EU Commission will also attend.

The summit was earlier scheduled to take place on Denmark’s Baltic island Bornholm but was moved due to a strike at Bornholm’s airport, which was not resolved until late on Monday.

A total of 2.8 gigawatts of wind power are currently produced in the Baltic Sea according to the Danish energy ministry.

Potentially, that could be increased to 93 gigawatts by 2050, an EU Commission assessment has found.

Earlier this year, Frederiksen hosted a green energy summit in western Danish city Esbjerg, at which the government signed an agreement with Belgium, the Netherlands and Germany for a ten-fold increase of offshore wind power capacity in the North Sea to 150 gigawatts by 2050.

On Monday, the Danish parliament voted through plans to increase production wind energy at a wind turbine park off Bornholm from 2 to 3 gigawatts. The facility will be connected to Germany.