Danish energy company Ørsted plans to raise 60 billion Danish kroner in a rights issue after scrapping the planned sale of a stake in its U.S. offshore wind project, Sunrise Wind.
The company said on Monday that "material adverse development in the US offshore wind market" made it impossible to complete the partial divestment on acceptable terms.
The cancellation means Ørsted must now fund the entire project itself, creating an additional funding need of approximately 40 billion Danish kroner, according to the company.
"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," Group President and CEO Rasmus Errboe said.
The company stated the proceeds will strengthen its capital structure and provide financial robustness through 2027 as it builds out its 8.1 gigawatt offshore wind construction portfolio.
The Danish state, Ørsted's majority shareholder, has committed to participating in the share sale, which will be fully underwritten by Morgan Stanley.
The move came as Ørsted reported first-half operating profit, excluding new partnerships and cancellation fees, rose 9% to 13.9 billion Danish kroner and maintained its full-year guidance.
More from this issuer
Related coverage
Danish energy company Ørsted said Friday it will commercialize a low-noise installation technology for offshore wind turbines, signing its first deal with German asset manager Luxcara.
Danish energy company Ørsted said it has strengthened its capital structure by completing a 60 billion Danish kroner share sale and divesting a 50% stake in its Hornsea 3 offshore wind farm in the U.K.
Danish energy company Ørsted has agreed to sell a 50% stake in its Hornsea 3 offshore wind farm in the U.K. to funds managed by Apollo, a move aimed at shoring up its finances.
Danish energy company Ørsted said Thursday it will cut approximately 2,000 jobs by the end of 2027 to improve competitiveness and focus its business on European offshore wind.