The world's largest offshore wind developer, Ørsted, has reported a massive $262 million Q3 loss, despite recently completing a $9.35 billion rights issue. This loss is attributed to soaring impairment charges and mounting challenges in the United States, where the Trump Administration is obstructing offshore wind projects. The company is now taking a strategic shift by slashing its workforce by 2,000 by 2027, eliminating a quarter of its current roles.
The offshore wind industry is facing backlash in the United States and rising costs in all geographies, impacting project economics. Ørsted's CEO, Rasmus Errboe, emphasized the company's focus on delivering its business plan to remain a global leader in offshore wind with a strong foothold in Europe. However, the company is also addressing the impact of regulatory changes, cost inflation, and high interest rates on its operations.
This challenging period has prompted Ørsted to seek capital from existing shareholders to cover immediate financing needs and manage risks from regulatory uncertainty in the U.S. The company's strategic priorities include reducing its organization by about 2,000 positions by the end of 2027, despite the recent rights issue. This move is seen as a necessary step to navigate the current headwinds and ensure the company's long-term success in the offshore wind sector.
