Orsted Secures Shareholder Approval for Emergency Capital Raise
Orsted, the Danish renewable energy giant, announced on Friday that its shareholders have approved a critical rights issue aimed at raising 60 billion Danish kroner ($9.4 billion). This move comes amid significant industry disruption triggered by political opposition and operational challenges.
U.S. Government Halts Key Offshore Wind Project
The capital raise follows a direct intervention by the U.S. government, under former President Donald Trump, which ordered a halt to the company’s Revolution Wind offshore project located off the coasts of Rhode Island and Connecticut. The project, which is approximately 80% complete and expected to supply electricity to more than 350,000 homes, had been fully permitted before the suspension.
In response, Orsted has initiated legal action against the U.S. administration to challenge the work stoppage and resume construction.
Profit Warning Reflects Operational Headwinds
Earlier on Friday, Orsted revised its full-year operating profit forecast downward, citing lower-than-expected offshore wind speeds during July and August. While analysts at Citi described the profit guidance reduction as “relatively minor,” they noted it adds to the company’s challenges alongside the ongoing U.S. legal dispute and capital raise.
Market Reaction and Outlook
Investor sentiment appeared cautiously optimistic following the rights issue approval, with Orsted’s shares gaining approximately 2.9% after a steep decline of nearly 90% from their 2021 peak. The funds raised are intended to bolster the company’s financial stability during this period of uncertainty and support ongoing project development.
