Half Year 2025 Orsted AS Earnings Call
Yes.
For the second quarter. This morning, we are now.
Ounces the plan for a fully underwritten rights issue.
<unk> is expected to amount to 60 billion in gross proceeds and that is supported by our majority shareholder the day mistakes.
The rights issue was intended to fulfill an incremental funding requirement, which has arisen following our decision to discontinue the divestment and associated nonrecourse project financing process related to our Sunrise wind project in the U S.
With the rights issue, we will strengthen our capital structure to cover for the food ownership of Sunrise wind and provide the needed financial robustness and flexibility for the execution of our strategic plan as announced in February and position us for future growth.
While we do not take this decision lightly it is based on a comprehensive assessment of our options and we have no doubt that this is the right decision for us and our shareholders.
And puts us on the path to maximize shareholder value going forward.
We are very pleased with the support from our majority shareholder.
Before going through the details of the planned rights issue, let me turn to slide five where I will talk you through some of the operational highlights for the first half of 2025.
First we are pleased with the operational performance for the first half of the year, where our EBITDA, excluding new partnerships and cancellation fees.
I want to 13 9 billion.
We remain on track to deliver our full year EBITDA guidance of 25 to 28 billion. Despite the lower wind speeds in the first half of the year.
During 2025, we have made solid progress within our construction portfolio I will cover the progress in more detail in a few slides.
I would like to highlight that we have achieved first power on greater <unk> in Taiwan.
Analyzing the installation of turbines.
Jason's on Revolution wind in the U S and likewise initiated installation of turbine foundations at Sunrise.
Through our partnership and divestment program, we have secured $7 billion of proceeds from divestments and likewise, we closed the project financing for greater channel too.
Raising approximately $20 billion for the 632 megawatt offshore wind farm.
The availability across our offshore portfolio in first half of the year was 92%, which is a significant increase compared to the same period last year.
Primarily driven by the fact that we last year, where we saw the issues with the electrical infrastructure on the export transmission cable on two offshore wind projects.
All renewable shift generation was at 99% in line with our targets.
Our total recordable injury rate increased to $2 seven slightly above our target of two five.
To ensure improved improvement of our safety performance, we have launched an internal program across the food organization, which is intended to further increase training safety awareness and management focus all aimed at lowering the incident rate and bring our people home safe every day.
Let's turn to slide six and a stages on our four strategic priorities that we shared as part of our full year 2020 full results and which will continue to be our key focus in delivering our business plan.
The first priority is to strengthen our capital structure.
While the rights issue, obviously will be an essential component of this we have also taken several measures through lowering our field, our ambitions and reducing our investment program.
During the first half of 2025, we progressed these measures as we close divestments related to steaks in a U S onshore portfolio.
And our west of <unk> Sands project and also closed the project financing package for greater China.
The project financing package is supported for the overall project returns and I am pleased that we received a very strong support from both international and local banks as well as export credit agencies, which shows that there is a healthy appetite to support premium assets.
Furthermore, the continued earnings contribution from our operational portfolio is an important part of strengthening our cable construction.
And I'm pleased with the performance that we have seen in first half of 2025.
The second priority is to deliver on our eight one gigawatt offshore wind construction program.
And we have reached a number of significant milestones during the first half of the year.
By delivering on our current construction portfolio, we will almost double our installed offshore capacity by end of 2027.
Which will further solidify our position.
The industry.
Our third priority is to focus and sharpen our capital allocation with a disciplined and patient value over volume mindset.
This emphasis led us to discontinue the development of <unk> in its current form.
While we are currently Reconfiguring the project on a different timeline, we continue to view the long term fundamentals for offshore wind in the U K is strong and.
And we see an attractive potential for the future deployment of <unk> as we continue to hold the seabed rights grid connection.
Well as the development constant order for the project.
Our fourth priority is to improve our competitiveness.
We have taken several measures during the first half of the year.
For instance, through a restructuring of our organization and the addition of new members to our executive management team.
Such that we will achieve development.
Our development construction and generation now have the full lifecycle of an offshore wind project reflected in our executive leadership team.
In addition to these we continue to introduce efficiency measures and right size, our organization, which I will talk more into shortly.
Turning to slide seven and an update on the progress on our construction projects.
We continue to deliver on our offshore construction program. According to plan.
On <unk> III, we have installed all foundations and turbines and are currently awaiting the grid connection from the German transmission system operator.
In the interim we are receiving financial compensation from the DSO for the delay and grid connection.
The GSO grid converter offshore installation is finalized in the meantime.
First power is expected towards the end of this year and the project is expected to be <unk>.
<unk> in the beginning of 2026.
On greater China to be in full we achieved first power in July and have continued to make further installation progress.
At this point, we have installed all of the turbine foundations more than a month ahead of schedule.
Likewise installed more than half of the turbines.
Furthermore, we have successfully energized the onshore substation.
However, we have had to update our expected installations here through driven by a slow start to a rate cable installation and delays in the delivery of turbine blades.
Therefore, we now expect one third of turbines to achieved first power progressively during Q1 2006.
While we do not expect any material financial impact to the business case as a result of this development. We are of course assessing options to mitigate and reduce the delay.
Altogether, we expect the commissioning of the <unk> related to channel to by the end of 2025.
Commissioning of the full project during first half of 2006.
The project continues to focus on our rate cable installation and managing any potential schedule indication caused by the weather conditions and will in the coming periods continue to progress the installation of turbines export in our rate cases.
Turning to an update on our northeast program in the U S. Starting with Revolution wind.
Where we have continued making good progress and remain on track for commissioning in the second half of 2026.
We have made progress on the construction of the onshore subsidies as well as the installation of monoprice entered months.
During the quarter, we have completed the installation of all turbine foundations and have installed nearly 70% of the turbines.
The progress made during the quarter has increased the degree of completion to around 80%.
Yes.
The project continues to progress on a number of scopes that are critical to the delivery of the updated project schedule.
In June damage to one of the installation versus mix was identified and doesn't need a roche for the vessels to go into Harper for inspections.
The inspection and repair work were carried out efficiently by the team over the course of five weeks and.
And the vessel has since returned to service Etsy.
There is no expected impact to the commissioning of the project.
We expect to complete the installation of turbines towards the end of this year and once complete we will subsequently commenced the installation of turbines for Sunrise wind.
For the onshore substation, we're continuing to progress the equipment installation according to the updated schedule.
We remain on site to manage the continued installation of the project and.
And expect Energize station early next year.
The modal pile for the offshore substation that was not suitable for us because a seatback resistance was successfully removed in the quarter.
Installation of the new Monocline will take place in the coming period and the installation of the offshore substation is scheduled to take place in the coming periods has been.
Utilizing the already contracted installation vessel that are undertaking work at Sunrise and resolution.
We remain on track for commissioning in the second half of 2026.
Turning to the other part of North of our northeastern program, our Sunrise Wind project, where we have also continued to see good progress across the different scopes and remain on track for commissioning in the second half 2027.
The degree of completion for the project remains around 30 or 35%.
While it is only a slight increase since Q1.
It is important to note that the metric reflects a combination of schedule progress and financing spin.
And as such not necessarily catch or the progress achieved during the quarter.
In fact, the project has made solid progress according to plan as.
As we have started the installation of mono pile foundations with currently more than 13 turbine foundations installed.
This work will continue throughout the current installation window, where we will also initiate the turbine installation once completed revolution wind.
The project's focus remains on a number of items that are critical to delivering the project on the updated schedule.
The fabrication of Monoprice is progressing according to plan and will continue throughout 2025.
Which is when we expect to have all foundations completed.
As mentioned, we have commenced the installation of turbine foundations and we will continue this work over two seasons due to the time of unit restrictions of when they can be installed.
On the export cable we continue to see good progress on fabrication as two out of three sections are completed.
And final one being near complete.
Finding factory acceptance testing is expected to be completed in September.
On the jacket structures for the AC DC. It has passed the final phase of the quality control.
And been loaded onto transport vessels.
And is on track to be installed later this year.
We continue to manage the risks related to execution of the project.
And we remain on track for commissioning in the second half of 2027.
And our own <unk> four project in the UK. The construction continues to progress as planned with the <unk>.
Onshore work to build the converter station at cadence on track.
The offshore scope is underway.
Housing on preparing the export cable route following the completed removal of unexploited audiences.
We are working closely with suppliers to manage the ramp up and delivery of components to be installed offshore during 2026 with fabrication and <unk> being a key focus.
There are multiple suppliers contracted for the <unk> application and if relevant we can utilize the flexibility gained from this.
Further we are also closely monitoring the installation schedule of the project quick connection.
As there are a number of renewable energy projects under construction in the same area for the grid connection. We are also working closely with national grid.
Such that we can maintain current expectations for <unk> power and commissioning of the project.
Construction work for the co located battery storage solution is planned to start during the second quarter of this year.
In Poland, Our boys could Chew project is moving forward.
Excuse me moving ahead.
According to schedule and our collaboration with our partner PGE.
Working really well.
We are progressing the first phases of the construction projects and in the second quarter. This included continued construction work at the onshore substation side and cable route preparation onshore and offshore.
As well as progress on the manufacturing of the offshore substation, our mobile Pos application.
We are closely following the fabrication progress of the key components and taking the necessary mitigation actions for instance for the offshore substation, where the project is managing various items related to design alignment defense and security.
We remain on track for earliest cost per se the way mid 2026 from Vietnam for the offshore Substations.
The progress on the installation harbour in Poland is still on track and with float in the schedule.
We will continue progressing the fabrication KBR preparation and also finalized cadence design to initiate the cave in manufacturing.
We are closely engaged with contractors and regulators to ensure that we progress according to the current schedule.
Finally, the project is undertaking regular site visits with our partners to secure high focus honestly.
Lastly, the construction of our onshore projects across Europe, and U S continues to progress according to plan.
With that.
I will now turn to slide eight and cover how the use of proceeds from the rights issue will strengthen this foundation.
First it is intended to enable us to fund the full ownership of the Sunrise wind project on our balance sheet. Following the discontinuation of the farm down and financing processes.
That we had progressed for the project.
Secondly.
The right tissue, we strengthened our foundation and secure an improved capital structure, which is required to unfold.
Business model and optimize the value of our operational and construction portfolio.
Thirdly, it is intended to enable a more value accretive and flexible approach to timing of partnerships and divestments.
And finally it is intended to ensure that we are strongly positioned to pursue the most attractive offshore wind projects going forward.
Months.
Altogether. This resulted in the proposed rights issue of a size of 60 billion by way of a fully underwritten rights issue.
Let me go through each of these components in detail starting with slide nine and the developments around the farm down and the associated project finance processes related to Sunrise wind.
As mentioned previously we continue to see good progress in terms of construction of the project and delivery according to schedule.
As part of the financing of the project and our business plan, we have decided to pursue a divestment of our stake in the property and to pursue a non recourse project financing package, including a tax equity bridge loan for capital management purposes.
Up until April 16, 2025, we had progressed the project financing process, which at that point in time was very well on track with over subscription of the entire debt package.
We will also well progressed in negotiations with relevant equity indices.
However, following the stop work order on <unk> Empire Wind project.
The perceived risks of the U S offshore wind market among investors and banks.
Increased significantly.
This extraordinary and unprecedented development, which arose unexpectedly most outside of our control <unk>.
Impacted our dialogue securing recent months, where investors in Voip and equity prices substantially increased their required risk protections and return requirements and the banks and voice on project financing ultimately, we're not able to continue the process under current market conditions without material risk protection.
<unk> vehicles from us the parent company.
Based on these developments, we decided today to discontinue the process as it is not possible to complete the partial divestment and associated nonrecourse project financing of Sunrise wind.
On terms, which will provide the required strengthening of our capital structure and support our investment program and patiently.
As a result of this a significant additional incremental funding requirement is needed to cover for the lack of proceeds from both the equity divestment.
As a finance package as well as incremental Capex requirement following our decision to assume full ownership of the project throughout the construction phase.
The combined effect of these developments has led to an incremental funding requirement of around $40 billion at quarter periods 2025 to <unk> 27.
Despite these developments around the funding of Sunrise win the project is moving forward with with an absolute return level on a lifecycle basis that remains at the mid single digit level, we have communicated before.
Yes.
Turning to slide 10, and I'll walk through of why a strong capital structure is required for us their business model to optimize the value of our operations and construction portfolio.
For us to leverage our business model and optimize execution a strong capital structure is a prerequisite.
Given the nature of our capital intense business, where we are developing constructing and operating large complex infrastructure assets with long duration.
We have numerous counterparts across tradings clients partners and lenders.
To ensure that we have the optimal conditions to operate the company and create most value for our shareholders.
Our counterparty arrangements require that we have a strong capital structure.
It was not to be the case, there are a number of closures and triggers that would negatively impact our business operation and execution.
Towards both incoming asset partners and suppliers, we would be required to increase risk protection. Thus worsening the terms on which we can enter into partnerships and agreements.
And weaker capital structure, and consequently, lower credit rating would also require that we post additional collateral related to trading and hedging activities.
As parent company guarantees would not be sufficient.
And Furthermore, it will produce our exit two favorable terms for funding activities.
For these reasons, we remain firmly committed to maintain a robust <unk> construction with a targeted solid investment grade rating.
Turning to slide 11, and the financial flexibility that the rights issue will provide.
As part of the initiatives already taken to strengthen our capital structure, we had a sizable divestment program at a point in time, where conditions for divestments have been challenging due to the macroeconomic conditions and updated views on offshore wind as an asset class.
Under these conditions, we have as planned delivered almost 30 billion of proceeds over the past 18 months.
Going forward and once we have delivered on our key ongoing transactions, which we'll come back to.
We will be able to take a more value accretive and flexible approach towards the timing of partnerships and divestments.
And lower our dependency on farm downs below 50% ownership of operational assets to fund our business plan.
Thereby also lowering the execution risk.
Retaining a larger share of projects operational cash flows supports our capital structure long term.
Turning to slide 12, and how the rights issue can support our positioning in the growing European offshore wind.
While the rights issue is aimed at securing our funding requirements and strengthening our capital structure for the period 2025 through 2027.
It would also solidify our long term financial position and thereby strengthen our ability to pursue the most attractive offshore wind opportunities from a position of strength.
Despite the headwinds that offshore wind as an industry has faced in recent years, we continued to see a very strong outlook for the technology, particularly in Europe.
Electricity demand is projected to more than double by 2015.
Europe must secure its energy future by ensuring affordability decarbonization competitiveness increased energy independence and strategic autonomy.
Achieving these goals requires a safe sustainable and reliable energy system, one that meets rising electricity demand with diverse mixed opinion energy technologies.
Offshore wind remains essential to this transition as it reduces reliance on fossil fuel imports stabilizes enterprises strengthened energy security and resilience.
It delivers large scale cost efficient green power.
Our cost projections of future energy mix in Europe by 2050 offshore wind is expected to deliver between 20 and 25% of future electricity generation.
This would correspond to a capacity between approximately 300 to 500 gigawatts of offshore wind capacity.
Which is a very significant increase from the current installed levels of around 37 gigawatt.
In the near term we are also seeing signs in terms of improved industry conditions.
To give you a few accomplice.
We have over the past three years in investments of more than 5 billion euros in increasing the European manufacturing capacity.
Also the tendons and viability of projects have reduced the appetite for developers in recent years.
Which demonstrates that remaining developers need will improve business cases, and revenue certainty by a contract for differences.
When we look at the market specific conditions.
We are also seeing encouraging signs.
In the UK the cfd contracts have been extended from 15 to 20 years and new tenders.
In Denmark. The government has responded promptly following the auction end of last year.
And has switched to <unk> and the new accelerated timber.
In Poland. They have adjusted CFT frameworks to reflect the shift in market fundamentals.
Netherlands is planning to adjust framework conditions to better reflect market fundamentals.
In Ireland and Belgium, we are also seeing a push towards CFT tenders.
Lastly, Germany is considering changes to their framework and just last week, we saw no bit us in the market based options.
We remain firmly committed to offshore wind as a focus discipline and competitive leader of the industry.
As stated repeatedly we will continue to employ a focused and disciplined capital allocation framework and.
And we will pursue new offshore wind opportunities once the risk return equation for new projects is sufficiently attractive.
The rights issue combined with the initiatives that we are presenting today.
To ensure that we will be well positioned to pursue future value accretive opportunities.
Let's turn to slide 13, and go through the key measures that we are taking to sharpen our focus and competitiveness.
At current we are significantly growing our portfolio and will almost double our installed offshore wind capacity by 2027.
For our future capital allocation, we will have a strategic emphasis on offshore wind in our core markets in Europe and select markets in April.
For projects in the U S. We are fully committed to complete installation of our northeastern program.
So sunrise and Revolution wind.
We will scale back or the development projects to focus only on retaining the value and strategic optionality of our offshore lease areas.
We will continue to be very financially disciplined in the way we decide to allocate capital.
We will uphold our return requirement of 150 to 300 basis points.
Which is based on fully cost loaded lifecycle perspective, including all development <unk> and decommissioning costs, while not taking into account potential benefits from farm down gains or leverage.
The strategic emphasis on offshore wind has implications for all remaining business area.
Within our onshore business, we have initiated a process, where we are exploring a potential full divestment of our European onshore business in line with the increased focus of our core offshore business activities.
Similarly, we have decided that our U S onshore business will hold a degree of strategic flexibility going forward that can be used to optimize the value of the groups overall portfolio.
This means that the U S onshore business will be granted a higher degree of autonomy and independence going forward. Our U S. Onshore business has a strong foundation and continue to deliver attractive earnings and operational cash flow.
Within all of our energy business. We are also focusing our activities as we will not pursue further carbon capture tenders in the immediate future.
In addition to these decisions we are also introducing measures and initiatives to increase our competitiveness and cost efficiency.
First we are making investments into our trading in revenue business that will optimize the value from our growing operational portfolio.
This is expected to contribute an expected incremental EBITDA impact of 0.5 dollars to $1 billion annually from 2027 and onwards.
Secondly, we are taking several measures within our generation organization to improve our output and lower cost base through portfolio and operational efficiencies technological innovation standardization and generation excellence.
With our current initiatives. This is expected to drive incremental annual cash flow improvements in the range of two to two 5 billion from 2027 and onwards, approximately half of which is expected to have EBITDA impact.
Finally, we are in the process of right sizing our organization throughout 2025, and 2026 to lower our cost base. As we are aiming to design an organization that reflects our current buildout and as more flexible going forward.
We expect to provide further information further information on these initiatives towards the end of the year.
Let's turn to slide 14, where I will cover our capital allocation principles.
First it is key for US is future investment decisions will be taken within the parameters of strong capital structure.
With a targeted go to adjusted net debt above 30%.
We see this as the right level for us to ensure that we can maintain our solid investment grade rating.
And as I have described it is important for our business model and the value we create from our construction and operation of the portfolio.
Regarding dividend, we remain committed to reinstate dividends for the financial year 2026 will payout in 2027.
We fully appreciate the importance of dividends to our shareholders and reiterate our commitment to reintroduce it.
Lastly, we will only pursue opportunities that meet our strict value creation criteria.
We have already illustrated this commitment with our decision to discontinue development of <unk> in its current form.
We will continue with our disciplined value over volume mindset, and only pursue new opportunities once the risk which are indication for new projects is sufficiently attractive for us.
Based on the committed capital of $145 billion through 2027.
The projections of our credit mix metrics indicate a significant increase in our investment hidden beyond 2027.
As we look to utilize governed by the strict capital allocation principles that I just described.
This implies.
And that the projected financial headroom will be utilized for value, creating offshore wind investment opportunities Alternatively shareholder remuneration.
With that let me hand over the financial update to you.
Thank you Ross and good.
Good morning from me as well.
Before I go into the numbers.
The business plan.
Let's turn to slide 16, and walk you through the key developments of our.
EBITDA in the second quarter.
Yeah.
Towards the second quarter, we realized a total EBITDA of $6 6 billion.
When I refer to numbers or their OLED Danish kroner, except otherwise stated.
That is slightly higher than last year.
Excluding new partnership sudden cancellation fees, we realized an EBITDA of $5 3 billion and that.
It is the same level for Q2 of 2024.
For the offshore business earnings came in at around the same level as last year.
Earnings from sites increased by more than $400 million driven by ramp up of generation good even three.
Compensation related to bottom risk fleet higher availability rates as well as higher pricing on green certificates.
<unk> substance.
This was partly offset by the impact of lower wind speeds.
The decrease in other costs within this segment, primarily relates to cost reallocation, which does not impact the overall earnings for the business.
In our offshore business earnings increased by $200 million driven by ramp up of generation from new assets and sale of components.
Within energy and other earnings increased mainly driven by higher achieved prices.
Uptake and increase to all stakeholders.
For new partnership we recognized an EBITDA gain of $2 8 billion relating to divestments.
24.5% stake in the West of Devers project.
For cancellation fees, the total amounted to a net loss of $1 5 billion.
This related to the decision to discontinue development of Hornsea forward, which led to a negative EBITDA impact of $2 9 billion.
This was partly offset by.
Positive impact of $1 3 billion from various settlements and other contract payments relating to the Ocean wind project.
On a related note we have now virtually worked our way through the contract settlements related to ceasing development or launch New England.
And we have ultimately managed to settle on better than assumed terms for more than $9 billion in total.
Yeah.
Turning then to slide 17, an update to our investment programs towards 2027, following the trend Android plans rights issue.
Our guidance on gross investments continued to reflect our share of the capex that we have committed to our ongoing construction projects.
Compared to our previous guidance of 130 billion of committed Capex.
Kris over approximately 15 billion relates to the incremental capex from increasing our ownership share in the Sunrise <unk> project.
The entire construction phase.
As well as higher anticipated costs due to the imposed tariffs.
In the U S.
As shown on the graph part of our Capex outlook is realized during the first half of 2025.
So the incremental capex requirement is around $120 billion.
Of that around.
Around 110 billion is expected to be deployed towards the installation over $8, one gigawatt offshore construction portfolio.
The remainder will be used for construction of all of our projects within onshore and bioenergy business.
Turning now to slide 18, and an update to our partnership and divestment program.
Since we launched the exploration of our phone down program we have.
For Sunrise wind progressed according to plan.
With the planned rights issue, we will reduce some of our planned activities and only execute on selected number of divestments to optimize value creation.
Across 25 and 26.
We now expect to secure proceeds of more than 35 billion across a number of transactions.
We have already secured almost 7 billion of proceeds this year.
By closing of a transaction of a stake in the U S onshore portfolio as well as the divestment of the stake in the west of the <unk> project.
The additional proceeds or expect to come from a small number of transactions, but primarily from partial divestments of our ownership share in the horse is three and greater Chunghwa two programs.
In addition to this as well as also mentioned we have launched the sales process for a potential divestments of our European onshore business as part of our strategic priorities.
We have made good progress on both the divestment process in glad to Chunghwa too, which is progressing according to plan.
Regarding hornsea three as of today, we are well progressed with the preferred.
As we have said over the past quarters. It is the buyer's market, we see which you'll see reflected in the return requirements from the potential incoming partners.
We are always looking to optimize our divestment according to our three year objectives.
And so the potential divestment of Hornsea three cap.
<unk> management is particularly important consideration given the scale.
And the fact that it is in the relative construction currently in.
And construction phase as we speak.
Yeah.
Compared to the previous target of 50 to 61 billion of proceeds.
The 25% 26.
The main adjustments relate to the removal of the previous expected farm down of Sunrise win.
Removal of some divestments below 50% ownership in the operational assets.
Going forward, we will.
More value accretive and flexible approach to timing of partnerships and divestments.
Which will be driven by value optimization, rather than funding requirements.
Hence the lower our dependency.
Dependency of divestments.
<unk>.
In this regard we now plan to undertake the financing on sunglass spin ourselves.
We'll reassess our stake in the project.
Latest states, depending on the development of the market conditions.
Turning to slide 19 in our earnings projections towards 'twenty seven.
For our EBITDA.
Continue to see earnings growth towards through 2027, mainly driven by commissioning of the projects. We are currently constructing.
For 2025, our guidance range on the EBITDA remains unchanged. Despite the lower wind speeds in the first half of the year can be expect EBITDA for 2026 to be about 28 billion.
427% to be so.
$32 million.
For 2026, the adjusted EBITDA expectation downward.
Driven solely by a change of the expected timing of the fund down greater Chunghwa to project.
As we now seem to the vest mistake early in the year compared to previous DSC and towards the end of the year as well as the removal of anticipated earnings from the construction agreement for Sunrise wind.
427.
The EBITDA growth compared to previously previous years is driven by ramp up generation and commissioning of new projects towards the end of the year.
Also there are benefits from trading and revenue initiatives optimization of generation as well as reduction in organizational cost included.
For the return on capital employed.
We expect.
To be average around <unk>.
11% for the period, 25, 2007, and more than 13% for 28% to 30.
Compared to the <unk> for the same period under previous guidance. The impact is coming from higher investments Halloween full ownership of Sunrise win which lowers the rossi with approximately two percentage points over the period of 25 to 27.
Hence.
The average <unk> for the period of 25 to 27 would be around 13%. If we exclude the increased capital employed.
Which we will incur due to the ownership of San Jose.
<unk> 27, the investments undertaken in our large construction portfolio are impacting the metrics significantly.
The average capital employed for construction projects not contributing to earnings during the period is expected to be.
To be $50 billion.
To put this into perspective.
Capital employed at the second quarter is around 165 billion.
Turning to slide 20, and our sources and uses cohorts 2007.
<unk> covered the discontinuation of partial divestment and the associated financing process for sundial spin led to an incremental funding requirement over the period of 25 to 27.
To ensure that we continue to have the right level of capitalization throughout the coming years.
To conclude that.
The total devices or $60 billion.
Insurers.
We continue.
Work on farming down major fully owned project.
With the planned rights issue and we will look for the period totaled 27 significantly strengthen our liquidity position.
With the combination of our existing liquidity as the proceeds from the planned rights issue.
The future expected cash flows from operation and tax equity proceeds for the coming years, we will be able to fund the remainder of our construction portfolio.
Without the need for any further divestments, thus ensuring that we have a full backup plan for the coming years.
It is important to note.
The rights issue is suggesting the challenges to our capital structure.
The headroom within our credit projections.
Financial headroom.
Within our credit projections reflect the investment capacity at both our targeted benefits.
Net debt levels for the given period.
To ensure we continue to stand by our commitments also in the coming years. The rights issue will fully address the adverse impact.
Andrew following yes.
The address developments relating to the Sunrise win divesting.
Going then to slide 21, and the outlook.
Although our performance beyond 'twenty seven.
Once we have completed our sizable construction portfolio by 27, we will be we will be in a financially strong position.
First we will start to have the full earnings benefit from the completion of the build out once our touring offshore construction portfolio solid condition.
These projects will annually contribute maybe around 11% to $12 billion of EBITDA in the accounts.
Secondly.
Our return on capital employed is expected to increase above 30% on average between 2008 and 30.
Yes.
This is expected either through investments into higher return projects or from lower capital employed due to a lower investment level.
The excite level will depend on the utilization of <unk>.
<unk> financial headroom.
Finally, we expect to see an increase in the financial headroom, which will provide flexibility to pursue the most value accretive investment opportunities.
Under a disciplined approach or alternatively lead to shareholder remuneration.
The planned licensure will significantly derisk, our trajectory towards a more financially strong position so to deliver on these elements our top priority will be to continue delivering on our construction.
<unk> portfolio.
Turning to slide 22.
In summary of our business plan.
What they expect to deliver in the mid term earnings growth is based on installed renewable capacity of 2007 Gigawatts by 2027.
All of which is based on projects currently in operation and our more than eight gigawatts construction portfolio.
This brings in line of sight of EBITDA growth over 2007, where we expected EBITDA above $32 billion.
Our expectation of return on capital employed is around 11% for the period 25, 27, which is impacted by the incremental capex requirement from constructing some of our spin on the floor.
As I just mentioned, we expect this number to increase beyond 'twenty seven.
Average return on capital employed is expected to be above 13% in the period between 2030.
We will uphold the strict capital discipline and continue to target return requirements of 150 to 300 basis points.
On a truly close loaded lifecycle perspective.
We have reaffirmed we reaffirm our intention to reinstate the dividend for financial year 2006 with payout in 2007.
Finally, we remain committed to continue our work on reducing greenhouse gas emissions across scope 1233.
Finally on my part, let's turn to slide 23, and the three parameters on a rights issue.
The rights issue provides PMT subscriber subscription rights for existing shareholders.
Targeted proceeds and $60 billion.
It is supported by the data space for its 51% pro rata share of the capital increase.
The remaining part of the rights issue and the expected proceeds are fully underwritten by Morgan Stanley <unk> Co Inc.
So.
Next step will be to host an extraordinary general meeting, where the board will authorize the rights issue.
This is expected to take place on September <unk>.
Once authorized the prospective.
We expect this will be released.
The transaction is expected to close during the first half of October.
And with that I will hand back to <unk> for closing remarks.
Thank you very much.
Let's turn to slide 25, where we summarize the presentation.
We continue to solidify our leading position with offshore wind with our more than 10 gigawatts of capacity in operation and more than eight gigawatts of capacity to be commissioned over the coming years.
It was an attractive operating portfolio continued to deliver solid predictable earnings and we are initiating niches that will further improve the value of the portfolio generation excellence and revenue optimization.
We are continuing to progress the installation of our more than eight gigawatt of offshore wind construction projects.
Which provides clear line of sight and significant earnings growth in the short term.
We are further sharpening our strategic emphasis on offshore wind towards coal markets in Europe and select opportunities in Asia.
Our fundamentals are in place for sufficient value accretive growth.
With the planned why tissue, we will enhance our financial flexibility and solidity.
Which would support higher value retain retention in partnerships and divestments.
Finally, we will continue to apply a disciplined capital allocation with strict prioritization of value over volume.
Our objective financial headroom would be applied towards value accretive offshore wind opportunities Alternatively shareholder remuneration.
With that let's turn to Q&A operator please.
We will now begin the question and answer session anyone who wishes to ask a question press star and one on the telephone.
Or will you return to confirm that you have entered the queue.
If you wish to remove yourself from the question queue, you May press star two.
<unk> on the phone are requested to disable the lungs become when asking a question.
In the interest of time please.
Let me just ask one question.
Anyone with a question at this time at this time.
Our first question comes from Harry <unk> from BNP Paribas. Please go ahead.
Hi, good morning, everyone. Thanks for taking the question.
I'll keep it to the cloud one can we just did an inventory of.
What you gain from doing the rights issue say.
This is what I have said, maybe you could fill in if I Miss anything say youre going to keep 100% at some right now so you get more earnings from that.
Youre going to do next.
<unk> say more projects at 50% rather than lower.
And.
You've got.
Optimization, good trading revenue and cannot pricing.
Cost improvements and have I missed anything that and is that all in the 2027 EBITDA guidance and <unk>.
And I guess, given the 70 project starting up in the second half of 2027, what would we be looking at for 2028, EBITDA, Let's say you mentioned $11 billion from the under construction projects how much of that let me something is missing in 2027 and obviously the reason for the question is one of the lower bounds CEO share prices.
Is going to be.
Also the full EBITDA EBITDA as in <unk>, if you could help us.
Roughly <unk> EBITDA will be in touch with all the projects up and running that would be very helpful. Thank you.
Thank you thank you Harry.
So three things.
First of all.
You are abroad right about what we what we gained from this.
No.
It is it is four things.
It is.
The situation on Sunrise wind.
It is to make sure that we have a strong capital structure. So we can onboard our business model is to enable a flexible and more value accretive as opposed to <unk> and it is very much to increase the financial robustness and flexibility going forward. So that we are very well positioned to lead continue to lead the way on.
Offshore wind in Europe, where we believe that the long term fundamentals.
Very strong in our core markets.
And then on the on your point on on.
27%, 28% guidance as I hear you.
So we don't we don't give guidance for EBITDA in.
<unk> 2028.
We have we have communicated.
You have seen to date.
Of course.
The $11 billion to $12 billion that are coming off EBITDA from our $8. One gigawatt construction projects of course gives.
<unk> gives you some feeling for what.
What is coming remember that is a full year effect from 2028 and onwards and <unk>.
Trying to two two.
Worked at in your model than of course, you have to take a look at the projects that I expected to two <unk> by the back end of 2027, so so sunrise wind.
Once you three as examples we.
We of course with Sunrise wind, our EBITDA contribution will be very significant because we assume to do that on a 100% basis. So that gives you. Some some some feeling for the EBITDA, but we only we don't guide on 'twenty.
Okay. That's what I, maybe just have one last stab at the.
A question would you be able to tell us how much of the 11% to $12 billion is from projects that are starting up in 2027 or even give us a rough share would be <unk> 7 billion, that's coming from summarize in homes three adults could take.
No Harry we don't guide on EBITDA on individual projects, we believe that with the 11 to 12.
We have put out.
Very good about we have a very good feeling for the incremental value that you would get from the from the construction portfolio that is ongoing.
Okay understood. Thank you.
The next question comes from Peter <unk> from Bank of America. Please go ahead.
Yes, good morning, Pizza, especially going ahead from Bank of America. My question was on execution risks remaining.
<unk>, new new business plan.
So that's kind of like two big ticket items here, but I was hoping you could comment on this one is on the three two.
<unk> heard correctly events for that one.
Third the third press reports, suggesting that the benefit of.
Of that one.
Wondering what the risk is.
Okay.
We will take longer.
Great.
And then.
That's a big one is actually completing the construction of it.
In U S.
Jay.
100% comfortable.
The U S administration panel.
I think those projects now.
Our weighted influenced.
Given the.
Lastly stalled.
And what contingencies.
Plan B is that.
If.
Based on this input.
Why don't you take 123 first and then I'll take construction as he was project related.
When it comes to the progress of the farm down on wholesale three yes, we said.
In the preferred bidders stage.
And that is according to the timeline that we have been having all alone.
And of course, we don't comment on the content of those negotiations.
But.
The only reason why we have come in with this you can see is of course the situation in the U S.
When it comes to all of our own.
Farm Downs.
Are progressing as planned so nothing sort of in the addition of comfort I can give you there, but there's no new news.
Other than being on plan.
And Thats.
With respect to the construction.
Our northeast programs, so sunrise wind and Revolution wind.
Shocked and the construction is moving forward. According to plan as we set it out.
In February.
So we are at.
<unk>.
70% of the turbines has been installed on Revolution wind.
34, 34 rate cases.
All all foundations.
For the remainder on the offshore substation onshore substation progress on track.
So our focus now on that project. This installation speed is the onshore shop space and then obviously also the the law.
Last modified.
Same for Sunrise wind moving forward. According to plan 13 foundations installed.
The offshore substation this medical sale out mid August expectedly.
All export cadence I'll also produced already consented out.
35 of the Monoprice has been produced and are progressing and so on so so the population growth. The project is moving forward. According to plan and we expect the asset <unk>.
Revolution wind in 2006, and <unk> somewhat in 2007.
And with respect to <unk>.
The.
The regulatory environment that you are.
Alluding to.
At this stage, we have no indication of a of a similar.
This is no sulfur golar I didn't note our northeastern U S program.
And I'm not going to speculate about the potential regulatory changes that are outside our control our.
Our projects have completed multi year revenues have fallen off all state and federal procedures, and we remain 100% committed to the continued construction of our of our.
Program.
And with respect to that.
Our spot on your on the.
Awesome.
We of course.
Addressed.
Terrorist and our business cases and come back to that and then we believe we have sufficient contingency how in all of them.
I mentioned earlier in my presentation.
<unk>, we do have the necessary funds available now to actually fund all of our projects and as a result of this.
Basically if for any reason there are sort of postponement sort of timeline so elements to that we have the necessary funds available.
Okay. Thanks very much.
The next question comes from Chris <unk> from Seb. Please go ahead.
Okay. Good thanks.
I'm going to sort of continue on the same lines because if I.
The figure correctly, then after the Empire wind is going very well.
Project financing provides funding to take on the risk.
With spacing. So we did 60 billion rights issue Youre now asks can you share with us.
To take this risk essentially so.
Just a bit more elaboration on.
In there.
But also you have to cope with this risk.
Could you issue, especially.
45 billion in remaining Capex for these two projects.
Opinion Brooklyn.
Okay from the rights issue or any kind of infrastructure would that be enough to cope.
With the risk.
Remaining capex and fitness.
At least.
I'm sure that debate on the commissioning how will that impact your approach.
2020.
Yes.
Thank you Christian I can start and then ill pass it on to.
So overall.
We.
Belief that with the capital raise that we are putting forward now you will have a very robust foundation.
For us and a robust financial foundation for US, which also which also means that we can cater for <unk> also will have alluded to we can cater for.
Sure.
Relevant relevant uncertainties true to our business plan, including.
<unk> two.
The two projects.
In the U S.
And when it comes to the the risk element to this we do.
So as of now we do have the 100% risk.
So we can project.
When we have discussed possible fund.
At Wassa.
<unk>.
An important element of having risk mitigation, what we have experienced in the negotiations. After April is of course that that is not possible at this stage relative to the market conditions, and thereby we need to mitigate that risk going forward.
Looking at that this is the result of that.
Basically that is.
Part of what we or the main part of what we're trying to address here.
Okay.
And then maybe my last part on sort of step up in the approach I guess.
I mean, when the therapy is stable.
Sunrise dam to procure from 2008.
Okay.
So.
You are breaking up a little bit Christian at least on my line.
I hear you basically say, where there will be a step up in our simple.
<unk> in 28, despite an potential delay of Sunrise wind, so a little bit hypothetical, but thats the way out here and the answer is yes.
Yes.
Thank you.
Yeah.
Okay.
The next question comes from Rob <unk> from Morgan Stanley. Please go ahead.
Hi, good morning, gentlemen.
A couple of questions on the share equivalent the process.
So the <unk> September 5th maybe this is a very technical question, but.
Why is there a delay.
If you could talk a little bit around that and also could you share any conversations you've had with the <unk>.
Rating agencies around the equity raise and new financing plan.
With this proactive promotional or versus reactive to credit rating agencies.
Contacting the company, obviously, given the situation in the U S. Thank you very much.
Thank you. Thank you Ralph the two questions I can take you can supplement.
So on the on the process towards the ETF.
Standard According to today's corporate loan there is simply a notice period from when you convinced the general meeting.
And so so we wouldn't we convened a general meeting now then we would be able to have it on the face of all of the September so it's not a.
A delay.
Is the way day initial corporate law works.
And then with respect to your question on the rating agencies, we have had a good.
Constructive dialogue with the rating agencies.
As part of leading up to the day to day and as we also.
<unk>.
Hum.
Continue to move forward to Sunrise wind divestment part with an increased risk on the transaction.
We.
It was you can say proactive from our path.
And the good.
Good.
Constructive dialogue.
Okay.
Okay. Thank you.
Thanks.
The next question comes from Alberto Gandolfi from Goldman Sachs. Please go ahead.
Thank you I just wanted to ask you on on the Med Tech.
<unk> 75 billion thrown us for the year. However, it's never quite clear what is it.
What is Matt is there any way you can guide.
Net debt post that tissue for yearend pre licensure for year end, because I wonder if now that you don't sell Sunrise, maybe the 75 billion.
Is it okay or should the stopping consensus net debt be more $85 90 billion.
It makes a huge difference from a valuation and.
And as a side note if you allow me.
I'm sure you've done the calculation. So are you telling us that maybe walking away stopping style Reits would have been more expansive than doing what youre doing today, which is frequently raising half of your market cap I know, it's a two part question, but if you could answer would be very helpful. Thank you so much.
When it comes to the net debt.
The actual net debt in my head right now Alberto.
Ill refer that to the IR team.
Actually gave you that of course in the annual report notes you will find the net structured.
But as we see it now the capital increase.
The rights issue will of course help us by the $60 billion.
But when it comes to the exact number as of now we have to refer you to Ireland.
And with respect to Sunrise wind.
<unk>.
The decision not to not to walk away from the project.
Yes.
With a project that is so so far progressed, 35% constructed.
It is.
It is by far the most value accretive option to move forward with the.
Got it.
As you know when you execute an offshore wind project the vast majority of the cost of construction cost to your suppliers.
Committed at the point of it.
So while you are logging pricing of equipment and so on so so so therefore, that's into our business very much locked in.
And then also remember that.
The construction of the project is going well.
That we are looking at the life cycle.
The IRR of mid single digits.
And that's a forward looking IRR.
It's very attractive.
Thank you.
The next question comes from Mark <unk> from UBS. Please go ahead.
Hello, and thank you taking my question.
I was most intrigued by the slide where you point to cost reduction plans and so forth.
Can you clarify the number you mentioned, which I believe is two to two and a half.
Billion.
Is that in addition to the existing cost reduction plans.
I think we're committed to one and two years ago.
So my question is what's new and what's not.
Further to that you talk about trying to extract more value from trading.
As I recall it was.
Couple of metric with some of the trading in the U K and some of the losses.
So you had may two to three years ago. So.
What's changed there with the potential.
To make.
To make profits that you can make it in the past.
Yeah.
Thank you thank you Mark.
So just.
As a starting point there.
There are three elements if you will.
Of our competitiveness and efficiency approach.
One is the right sizing of our organization that we have talked about before.
And to that end.
To answer your question directly we have we have delivered.
On on the numbers that we had previously put out and the way you should think about it is that we will continue to right size our organization throughout 'twenty five 'twenty six to match.
The flexibility required in the new business environment, we are in.
But we are not we are.
Not putting numbers to that today.
We will expect to return as we have said throughout 2025.
With more information by the end of the year.
With respect to the two to two and a half that you are referring to.
I think that to be the initiative around generation.
And as I said before we have we have recently appointed a new achieved generation officer Karsten Youku with reporting to me and the team and we are moving forward really well.
The various initiatives in our generation business to improve our competitiveness.
It is efficiencies.
It is portfolio.
Difficult for your approach versus et cetera innovation all to cater for the fact that we during the coming years, we will have a portfolio that is going to probably decide size of what you have today.
Obviously brings opportunity forecast.
Movements.
And then the third leg is on trading and revenue that you also alluded to so the 0.5.
<unk> two 1 billion of it obviously the expected from 2007 and onwards.
And is basically coming from you can say the three key components.
<unk>.
Mainly.
It is increased value from selling and buying certificates. It is increased activity day to day.
And today in the markets and also third party origination of the Ppas again due to the fact that we have a larger portfolio and also again with a with a focus on our core business, which is power and and offshore wind.
And not in any way that would increase our risk appetite that is not commensurate with our basis risk sort.
Sort of our approach to our call. This morning.
Yes.
The next question comes from last Handoff from Nordea. Please go ahead.
Yes. Good morning. Thank you for taking my question. It's on the Capex and also in that relation to EBITDA guidance, the Capex of 145 billion guidance.
We are having this discussion before is this a gross or net number. The reason why I ask is that how much have you assumed in terms of farm downs.
That are included in those 145 billion will.
Be fair to assume that you have taken in 50% compound.
Once you free and maybe also if you can indicate at what point of time.
You have heard has stated that it will probably be 25.
It is late assumed that empty and that will be even just capex contribution.
Fusion, but capex 200 feet and also in that relation.
11 to 12, EBITDA guidance is that assuming 50%, 50% compound of consciously and and also Shanghai is that fat tissue.
Just taking the Capex first.
The 145 is the number from first of January 25, So you have to take out the numbers that we have spent so far so the 25 ish. So we're down to 120 from now on.
What we have said is 110 for the construction projects or the <unk>.
Construction portfolio offshore.
About 10.
Onshore.
<unk>.
So I hope that clarifies the number it's all share.
Sure.
Not a growth share.
We as we have said, we do expect to farm down.
<unk>.
Hornsea three with the 50% level.
The EBITDA coming from this project is anticipating.
We come down.
To the 50% level on these.
The 50% level on these assets.
Okay, but just on the Capex side.
It doesn't go down so my question sorry.
I mean, you said.
So I can read that between the on and offshore but how much of that.
Is there a sort of a.
If you can mention across mobile because I assume that the 145 also include some kind of the farm down of both of these.
Two projects that stockpile.
That is correct. So it is assuming a farm down from the period that we expect the farm gummed up.
Yes.
What timeframe are we talking about.
So basically as we have said and as I've said on the EBITDA guidance on the 2006, we expect the tongue or wanted to happen in the beginning of 'twenty six.
We have not been concrete on the horn cheaply, but of course.
It is in process, so it's not going to be where we expect.
The progress on Hornsea, three to helping happening as planned, but we havent put down a date on that.
Okay, Alright, thank you very much.
The next question comes from Jenny Ping from Citi. Please go ahead.
Alright, thanks, very much can I just come back to.
X T range.
<unk> down.
Pat.
Interaction between each other.
<unk> been in.
Quite a sizable number.
I just wondered why you still pursuing.
Fell down.
Three Taiwan, given the mission that is very much of a buyers market as we stand.
Given the size of the range why not pause.
And push forward with this one de risked.
As operating assets.
Then secondly, along with that just in terms of you mentioned USB Neff Standalone.
Panamax units is.
The intention still to sell it when the market conditions improve.
Or what do you mean by Standalone Autonomous unit. Thank you.
Yes.
When it comes down to the capital management capital planning.
The element going forward is of course in consideration also where the dialogue.
We have got from the rating agencies.
So we are going online pursuing those kind of measures.
Even though we say, it's a buyer's market out there there is also risk mitigation.
Our capital management aspect to this because.
As you know is a big project and.
And we need to make sure that.
Risk.
Our risk mitigation as well.
Management is.
On its way.
And with respect to your question on U S. Onshore didn't show. So I said, we have initiated a process of basically uniting and also separating out our U S onshore business.
Which means as you pointed out that it will become a more standalone organization.
We do this.
Of course, it will drive the value for that business through lower overhead cost.
Let's say reduced global and U S complexities and also clear clear governance.
It's important that we have to note that our current U S onshore business with five six gigawatts of installed capacity.
As a well run attractive business and it's quite accretive to our earnings and also positive profile, Kansas function and just to be clear we have not at any point in time indicated that we would exit that business on the offshore side. We are seeing that we will focus on our execution context Revolution wind.
And that's on us.
Thank you, Jeff just a follow up on the first part.
Yes.
Thanks.
The criteria.
East West.
The worst thing are requiring more.
So when we found out is that fair to say, if you don't get the price that new ones.
The equity raise will be sufficient to fill the gap for them later on.
Pam and Clint.
No, but the element.
<unk> got the rights issue will of course.
A better position relative to the valuation but.
As I said in the beginning during the presentation the capital management.
Is an important element when it relates to the <unk> fleet.
Of course, if we're not doing any foreign loans, even though we have the funds available it will definitely put heavy pressure on our as opposed to net debts in this period and that's what we're trying to avoid.
Thank you very much.
The next question comes from Casper Blom from Danske Bank. Please go ahead.
Thank you very much and.
A question relating to comment Rosslyn <unk> gave a couple of times that the rights issue will also give you some muscle and flexibility to pursue the most attractive projects going forward.
Youre in a position right now where you are constructing a lot towards 2027 quite a spending spree and then it slows down and there are no big Capex plan as it is right now for 2008 and onwards.
Now, let's assume that you saw opportunities.
When would you need to sort of secure an award in order for that to be something that kicks in in 2008.
We've often heard that the timelines and offshore wind are very long so.
How long can you wait.
To get something that you can construct in 2008.
Or is it is it more realistic to assume that there can be a couple of years vacuum.
With no big construction going on in our stats, if you could sort of elaborate a bit there.
Absolutely. Thank you Kash.
So first of all.
Important to emphasize that.
I believe as I've said, a few times very much that there is a very strong outlook for offshore wind.
In particular in Europe, and also very much that there is a rebating happening in the in the coming coming years. So.
Investments in the supply chain.
As I talked about.
So that.
Frankly speaking Manny.
There is a rebating happening right now in the market at the same time.
You will see.
I believe around 110 gigawatt.
Centralized tenders coming in our core markets.
In the coming years, So UK, Denmark, Holland, Belgium, Ireland, Germany and Poland.
And then on top of that we have our proprietary portfolio. Once you forward in top of that I talked about of I think around sort of 10 10 10 11.
<unk>.
UK, Poland Island Basin.
So therefore, there is plenty of opportunities for us to proceed.
If you were to go fall.
Sufficiently attractive growth.
In Europe for the for the long Horizon will remember that we will only do that.
If we see the value there and and we are not we are not in a hurry.
In any way.
I of course fully acknowledged as you also allude to that there is a likely scenario, where we could have a.
A couple of years with with if you will on or no.
<unk> towards the back end of this decade.
One of a year or two what it ends up being and this is obviously clearly manageable Ross.
In this for the long run.
We are <unk>, our organization as I talked about we are becoming more flexible to manage this and we have been historically. So so that is the way we think about it it will be a value over volume we will not pursue.
Opportunities just to.
So all of this.
Fulfill a hole in the pipeline if you will.
If not today then maybe at a later point it could be really interesting to hear how you protect the capabilities in our state in your knowledge base. If you actually come to a point, where where there are no construction projects going on just as a comment.
Absolutely Kash.
Remember also the construction timeline for projects.
In our in our construction business that you also there.
Also a lot of time spend also on the development and as you would allude to before.
<unk> items and the construction site and offshore wind at all so.
We are not concerned about retaining.
The capabilities, we have in Austin, we have a unique.
Unique.
The team with a unique capability across all elements of the lifecycle of the wind farm and this is of course something that we will continue to focus on that we that we always retain the very best peak.
Thank you.
The next question comes from Dominic Nash from Barclays. Please go ahead.
Good morning.
One question from me please would be.
A follow up on the terms for the rights issue.
If that's okay.
Say that the <unk>.
Don't get published to September.
You say that it is underwritten and you have the support of your majority shareholder but could you. Please give us some color on a couple of things. Please firstly, what's the cost financial cost for undertaking.
Capital increase and is the underwriting.
Price has price been agreed on.
Will it be set in a month's time after the share price moves that we've clearly seen today and as always.
So quick follow on on your majority shareholder I think theres, a cellphone Bloomberg, saying that.
The government is supportive but.
But it is conditional on other shareholders I was wondering if you could add some color to that one as well. Thank you.
Thank you why don't I take the latter first and then you can talk about.
Technicalities on the rights issue, including is undertaking and so on.
So Dominic just to be absolutely clear we have we have.
Support from from the Danish government.
As stated earlier today, so the Danish government will.
When subscribed for the airports to share all of the capital raise.
And then.
The remainder will obviously be a two to two <unk>.
Shareholders based on the preemptive rights and then to the extent that is not.
Used and of course as we have also set in it.
Fully underwritten by.
Morgan Stanley.
So so so so that is that as steady state and then on the on.
On the cost side.
That will be disclosed in the prospectus when we issued that.
Subsequent to the system in September.
When it comes to the details.
Those commercial terms have been agreed.
It's not like it's sort of a floating element.
We will not disclose those numbers, we have benchmark those cost elements towards the market of placements.
With around $10 15 comparable transaction happening in Europe. So we're very comfortable at the customer.
So could I just thought it does that mean that the.
Underwritten prices have already been agreed.
No, but the cost of doing it has been great.
Okay.
I'll be quick.
So the pricing will happen just after the prospectus is.
Tissue.
Is the issue.
Okay.
The share price foods, the risk isn't at the level of the underwriting and pricing.
Comes in.
Wouldn't speculate in the actual pricing as of now.
Great. Thank you.
The next question comes from Ahmed Farman from Jefferies. Please go ahead.
Yes, hi.
Thank you for taking my question I, just wanted to come back to the overall plan that you have the equity raise but then also the disposal program and then execution of Sunrise wind is going to be critical.
I Wonder if you would give us some sort of a sense of.
What should we expect on that.
The disposal program for 2025.
And where you expect sunrise wind to be by the end of this year.
In terms of mix.
All growth or would you say that there is enough and with this equity raise because there is enough headroom.
Timing as to when the disposal program and deliver from a credit rating perspective, it doesn't really matter too much.
I think it's by.
December 25 mid.
In mid 2020.
Q this quite a lot of headroom.
In the program. So thats not one question second question anything you can say about sort of market conditions about around European onshore.
Linda efforts that would be helpful to hear your perspective.
On interest cost that's awesome. Thank you.
I can take the Sunrise and European onshore, but why don't you start with.
When it comes to the central government.
Okay.
As a result of when we finished the rights issue. We of course have timing wise much more headroom relative to the timing elements of certain things. So I would say, yes, there is no sort of six metrics having.
Having to be done by year end, no timing to be done by year end when it comes to the credit metrics, it's more sort of a continuous over time element, but of course I cannot.
Let's say when or how they will evaluate the two elements.
But I'm comfortable that the rights issue 60 will give gave us enough headroom on the timing on the execution of different elements.
Yeah.
And on the on the Sunrise wind so basically how do we your question on how do we win.
Where do we project the project will be by the end of the year.
The project is as I have said moving forward. According to plan. The degree of completion is going off as we have.
And rounded to 35% as we have said.
And we are pleased that we are now.
We have now installed 13 out of the 84.
Foundations. So again the project is moving forward.
According to plan on the construction side.
And then with your question on the market conditions for Europe onshore.
The process, we are running I assume.
We are we are in the middle of it. So therefore, I'm not going to give too much detail, but just say that it's a very very good platform. We have very capable team and we are not concerned in any way about the liquidity or the depth in the M&A market for our platform.
Of that nature.
Thank you.