Offshore wind giant Orsted gets green light for survival plan after Trump blocks project
Burbo Bank, Liverpool Bay, England, viewed from the sea turbines on Burbo wind farm off the U.K. coast.
Ucg | Universal Images Group | Getty Images
Renewables giant Orsted on Friday received approval from shareholders for its emergency 60 billion Danish kroner ($9.4 billion) rights issue, shortly after issuing a fresh profit warning.
Orsted’s pitch to raise the capital comes at a time of profound industry turmoil, amid sustained attacks by U.S. President Donald Trump on offshore wind projects.
The White House abruptly ordered the company to halt work on Revolution Wind off the coast of Rhode Island and Connecticut last month. The fully permitted project is 80% complete and would provide enough power for more than 350,000 homes across both states.
Orsted has since sued the Trump administration in a bid to restart construction on the windfarm.
In a statement following Friday’s extraordinary general meeting, the company said its closely watched rights issue had been approved by shareholders.
Investors appeared to welcome the reprieve. Orsted shares, which have fallen nearly 90% from a 2021 peak, were last seen up around 2.9%.
Earlier in the day, Orsted cut its full-year operating profit outlook following lower-than-normal offshore wind speeds during July and August.
Analysts at Citi said the lowering of Orsted’s full-year guidance was “relatively minor” against the backdrop of other company developments, referring to both the U.S. lawsuit and the rights issue. The bank’s analysts nevertheless described the update as “unhelpful.”
— CNBC’s Spencer Kimball contributed to this report.
