Ørsted has lowered its guidance range for core earnings for 2025, due to lower wind speeds across the portfolio and a delay of a construction project in Taiwan, as the world’s biggest offshore wind project developer grapples with challenges in the industry.
Ørsted revised down its guidance for earnings before interest, tax, depreciation, and amortization (EBITDA) to a range of $3.7 billion-4.2 billion (24 billion to 27 billion Danish crowns) for this year, down from $3.9 billion-4.4 billion (25 billion to 28 billion crowns) previously expected, the company said on Friday.
Ørsted is holding today an extraordinary shareholders meeting to vote on a proposed $9.4 billion (60 billion Danish crowns) rights issue to raise capital from existing shareholders as challenges for the industry continue to mount.
Lower-than-normal offshore wind speeds during July and August and a delay to construction of the Greater Changhua 2b project in Taiwan will impact core earnings adversely by $235 million, warned Ørsted.
Earlier this week, Equinor, which holds 10% in Ørsted, said it would take part with $939 million in the rights issue, as the Norwegian energy major signaled “confidence in Ørsted’s underlying business, and the competitiveness of offshore wind in the future energy mix, in selected geographies.”
Equinor said it expects consolidation and new business models to emerge from the current challenges in the industry, and believes that a closer industrial and strategic collaboration between Ørsted and Equinor can create value for all shareholders in both companies.
In a setback in the United States, Ørsted was issued a stop-work order on a nearly completed project by the U.S. Administration. Revolution Wind LLC, Ørsted’s 50/50 joint venture with Global Infrastructure Partners’ Skyborn Renewables, received a stop-work order from the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM).
The Revolution Wind project is 80% complete, with all offshore foundations installed and 45 out of 65 wind turbines installed. The partners in the project on Thursday sued the U.S. Administration, challenging the stop-work order.
By Tsvetana Paraskova for Oilprice.com
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