Jolly Green Portfolio: Week 5 – Orsted

The best way to stick it to Putin is to reduce our dependence on his fossil fuels. Orsted is the posterboy of how to do that.

Inspired by FT journalist Alice Ross’s Investing to Save the Planet, I’d like to share with you how your money can make a difference by investing in and profiting from the path to Net Zero.

This is week 5 of the Jolly Green portfolio and so far I’ve invested in SSE, GRID and TRIG. This week the £100 goes to the largest Danish power company and wind pioneers Ørsted – or Orsted if you forgive me.

Orsted has a long history, started in the 1972 as a state owned oil and gas company. Denmark has extensive oil and gas reserves, akin to the UK’s southern North sea fields.

But around 15 years ago, the company (the. called imaginatively DONG – Danish Oil and Natural Gas) turned the focus of their business from oil and gas to renewable energy and as they say in themselves “we are a renewable energy company that takes tangible action to create a world that runs entirely on green energy”.

Unlike the likes of Shell and BP that have been talking the talk on going green, these guys did it. They ran down / sold off their oil and gas business and invested heavily in renewable energy, particularly wind – both onshore and offshore. And it is for their expertise in building and operating wind farms that I know them best. Although they are involved in solar, bioenergy,

Reasons to Invest

Orsted is a well established company with a very clear operational direction. Their achievements to date are impressive and they are a partner of choice for future wind projects.

Company has made profits of 11B DKK in 2021 around £1.2 billion and the profit margins are good even before the current war in Ukraine pushed up power prices across Europe.

The shares are traded in Copenhagen and also on the NYSE and I picked 3.3 up at a price of about £30 ($40) with Trading 212 – my first ever fractional share purchase.

The shares are well priced for a recovery after falling almost 50% from their peak in late 2020 – a rout in many green shares that was reported by DIYInvestorUK. He’s written a few reports on his investment and you can read it here.

The company pays an annual dividend in April but it’s only about 1.6%. My £100 will pay for my new standing charge for gas and electricity for 2 days. Not much but it’s something.

What’s more, the profits not paid out as dividends are used to grow the business. So my investment is working and not just squatting – building new wind farms and producing green energy. And remember very extra unit of electricity generated by Orsted means is one bullet less for Putin’s army.

Why Green Investment is Necessary

I’m a passionate believer that our money should work for something and that’s the purpose of this series of blog posts. Stopping Climate Change and Putin requires more than wishful thinking – so why not invest yourself?

I’m investing through Trading212 & also Orca and if you sign-up yourself, we’ll both get a free share worth up to £200. Alternatively if you prefer a sure thing, I’ve been investing with Invest Engine myself recently and find it very good – sign-up and we’ll both get £25 if you invest £100 for a year (that’s a 25% return and a chance to put your money into action).

You don’t need to invest in individual shares, you can choose easily from a range of low cost ETF trackers if you prefer.

Thanks, GFF

This post is not meant as financial advice. You and will benefit from the affiliate links provided. DYOR and good luck.

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