Ørsted on Monday announced plans for a 60 billion Danish Krone rights issue after setbacks in the U.S. offshore wind market forced it to scrap a planned asset sale.
The Danish energy company said it was no longer possible to complete the partial divestment of its Sunrise Wind project in New York, which it took full ownership of in July 2024.
The cancellation leaves Ørsted needing to fund the entire project on its balance sheet, creating an incremental funding requirement of approximately DKK 40 billion, according to the company.
The proceeds from the rights issue will be used to strengthen Ørsted’s capital structure and provide financial flexibility through 2027, the company said.
"Ørsted and our industry are in an extraordinary situation with the adverse market development in the US on top of the past years’ macroeconomic and supply chain challenges," said Group President and CEO Rasmus Errboe.
The Danish state, which holds a 50.1% stake, has committed to subscribing to its share of the rights issue, which is fully underwritten by Morgan Stanley.
Ørsted also said it continues to progress with divestment plans for its Changhua 2 and Hornsea 3 offshore wind farms and has launched a sales process for its European onshore business, expecting to raise over DKK 35 billion from divestments in 2025-2026.
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