Ørsted, the world’s largest offshore wind developer, reported on Wednesday a loss for the third quarter amid soaring impairment charges as the offshore wind industry faces backlash in the United States and rising costs in all geographies.
Ørsted, which has recently completed a huge rights issue equal to some $9.35 billion, booked a loss of $262 million (1.7 billion Danish crowns) for the third quarter, compared to a profit of $796 million (5.17 billion crowns) for the same quarter of 2024.
Impairment losses soared by 519% to $240 million (1.757 billion crowns) in July to September this year, which turned out to be one of the most tumultuous periods in the history of the company.
Faced with numerous headwinds, Ørsted last month said it would slash its workforce numbers by 2,000 by 2027, eliminating a quarter of its current roles.
Fresh off its $9.35 billion rights issue to raise funds from existing shareholders, Ørsted announced it is taking another step in the execution of its strategic priorities by reducing its organization by about 2,000 positions by the end of 2027.
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The Denmark-based offshore wind developer has faced mounting challenges in the United States, where the Trump Administration is obstructing the construction of offshore wind projects, including the fully permitted 704-megawatt (MW) Revolution Wind being built by Ørsted offshore Rhode Island and Connecticut.
Regulatory changes, cost inflation, and high interest rates have impacted project economics in the offshore wind industry in the past two years. The impact has been felt by Ørsted, which turned to its existing shareholders to raise capital to cover immediate financing needs, manage risks from regulatory uncertainty in the U.S., and strengthen its capital structure.
In comments on the Q3 results today, CEO Rasmus Errboe said,
“Our key focus is to continue delivering on our business plan, which will enable Ørsted to remain a global leader of offshore wind with a strong foothold in Europe.”
By Tsvetana Paraskova for Oilprice.com
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