World’s largest offshore wind farm maker Orsted takes fresh $1.7 billion write-down in the US as its Trump nightmare begins
Danish offshore wind giant Orsted faced a fresh stock market hammering on Tuesday after the group announced a new billion-dollar impairment charge on the same day its foe Donald Trump ascended to the White House. Shares plunged as much as 17% in early morning trading after the group disclosed an impairment of 12.1 billion Danish kroner ($1.69 billion) in the fourth quarter of 2024 as rising interest rates and falling wind farm valuations hit the company’s portfolio.
Orsted’s Sunrise Wind project, a 924-megawatt offshore wind farm in New York meant to power 600,000 homes, is expected to take longer than expected after the group took supply chain lessons from its previous Revolution Wind project installation in the U.S. Mads Nipper, group president and CEO of Orsted, described the impairment and construction challenges as “very disappointing” but doubled down on his company’s commitment to the U.S.
“We remain committed to the US market in the long term with its potential for renewables to meet the growing electricity demand and create thousands of industrial jobs across the US,” said Nipper in a statement. “We continue to navigate the complexities and uncertainties we face in a nascent offshore industry in the new US market. Our dedicated efforts to strengthen execution and navigate supply chain challenges will continue.”
The $1.7 billion impairment was the latest write-down in a matter of months for Orsted in what has been a baptism of fire in its burgeoning U.S. market. The wind giant called America the “most painful part of our portfolio” in 2023 after absorbing a steeper $4 billion write-down after canceling two wind farm projects in New Jersey.
Orsted’s latest impairment was exacerbated by Trump’s inauguration as the 47th U.S. president, a sobering reminder of the challenges the Danish group faces trying to crack its nascent U.S. market for at least the next four years. Trump signed dozens of executive orders on his first day in office, including the immediate suspension of new offshore wind licensing. Orsted’s fellow Danish competitor Vestas also faced falling shares in early trading.
Orsted’s Sunrise Wind and Revolution Wind projects in the U.S. have already obtained all necessary permits. “We’re not going to do the wind thing. Big, ugly windmills. They ruin your neighborhood,” said Trump, Reuters reported. Shares in Orsted plunged nearly 10% in early morning trading on the day Trump was confirmed as the winner of the presidential election in November, while shares in Vestas also faced double-digit declines.
Trump lamented renewable energy on his campaign trail, signaling out wind energy for particular mockery. The new U.S. president repeatedly espoused false theories that offshore wind farms killed whales. Orsted, alongside other Danish Fortune 500 Europe companies like Novo Nordisk, Carlsberg, and Lego, attended crisis talks with the Danish Prime Minister as part of the Confederation of Danish Business to discuss Trump’s threats against Denmark over his desire to purchase the self-ruling territory Greenland from the country. Trump has threatened to slap Danish imports with steep tariffs if it doesn’t give in to his desires on Greenland.
Reporting By Ryan Hogg
Fortune via Reuters Connect
