Orsted reduces investment and capacity goals for offshore wind energy expansion

Orsted, the world’s largest developer of offshore wind farms, has announced a comprehensive review that includes cutting its investment and capacity targets, suspending dividend payouts, and reducing capital expenditure. The Danish company’s decision comes after struggling to restore investor confidence following the halting of two U.S. offshore wind projects and a significant increase in related impairment charges. Orsted has also lowered its power generation capacity target and plans to sell assets worth around 115 billion kroner by 2030.

As part of the review, Orsted also announced plans to cut up to 800 jobs, withdraw from markets in Norway, Spain, and Portugal, and its chairman, Thomas Thune Andersen, will resign. Despite the challenges it has faced, Orsted CEO Mads Nipper stated that the company remains committed to being the global leader in offshore wind energy. The company’s shares have risen since the announcement, but are still below their level before the first write-downs were announced.

Investors and analysts have expressed cautious optimism about Orsted’s new plan, with one analyst noting that the plan is solid at first glance. Despite the setbacks, the company’s new business plan is fully funded without the need to raise new equity capital, and Orsted remains committed to its long-term goals.

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