Wind Giant’s Value Plummets by a Third in “Extraordinary Situation”

In what its chief executive has labeled an “extraordinary situation,” Danish wind giant Ørsted has seen its market value plummet by almost a third. The company’s share price tumbled to a record low, falling below its 2016 flotation price, after it announced an urgent plan to raise $9 billion from shareholders.
The crisis was triggered by the company’s inability to finance its US operations as planned. Ørsted explained that its typical business model—selling stakes in new wind farms to cover costs—has been torpedoed by the hostile policies of the Trump administration, which have decimated the value of its American assets. This has directly impacted its projects planned for the US eastern seaboard.
The political hostility from the White House exacerbates pre-existing industry woes, including snarled supply chains and soaring interest rates that make new projects far more expensive. The administration’s review of wind permitting, combined with a shocking stop-work order issued to a separate Equinor project, has created a climate of extreme uncertainty.
Supported by the Danish government, Ørsted’s $9 billion rights issue aims to stabilize its finances and ensure it can complete its global project pipeline, which includes the Sunrise Wind and Revolution Wind projects in the US. The company hopes this move will reinforce its ability to navigate the current turmoil and capture future opportunities.