Shares in Orsted plunged to a record low on Monday as the wind farm developer asked shareholders for $9.4 billion to help fund a U.S. project, after potential partners were put off
Shares in Orsted plunged to a record low on Monday as the wind farm developer asked shareholders for $9.4 billion to help fund a U.S. project, after potential partners were put off by U.S. President Donald Trump's hostility to wind power.
The 60 billion crowns ($9.4 billion) rights issue is worth around half of the Danish company's market value as of Friday's close.
Struggling in recent years with soaring inflation and logistical problems that sent costs soaring, the offshore wind industry faced a further setback when Trump suspended licensing on his first day back in office in January.
"Orsted and our industry are in an extraordinary situation with the adverse market development in the U.S. on top of the past years’ macroeconomic and supply chain challenges," said CEO Rasmus Errboe.
Trump campaigned on a promise to end the offshore wind industry, saying it is too expensive and hurts whales and birds.
Orsted said two-thirds of the new capital would be used to fund the construction of Sunrise Wind - one of its two remaining projects under development off the U.S. East Coast.
Potential co-investors for the project pulled out after Trump's administration in April ordered Equinor EQNR.OL to halt the development
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