Ørsted’s Capital Structure “Strengthened” by $9B Raise Amid US Crisis

Danish wind firm Ørsted has announced a $9 billion rights issue intended to “strengthen its capital structure” and provide “financial robustness” amid a crisis sparked by the US. The move follows a catastrophic day of trading that saw its stock sink to an all-time low.
The crisis stems from what the company calls “adverse market development in the US.” The Trump administration’s hostile review of wind permitting has derailed Ørsted’s business model, preventing it from raising funds by selling a stake in its new American projects as planned.
The company’s CEO, Rasmus Errboe, acknowledged the “extraordinary situation” facing the industry, noting that the US political issues were layered on top of years of macroeconomic and supply chain challenges. The massive capital raise is a direct response to this confluence of negative factors.
The fundraising, which is supported by the Danish government, is designed to ensure the company can realize the full potential of its existing portfolio, including the Sunrise Wind and Revolution Wind projects. It’s a bold move to stabilize the company in a deeply uncertain political climate.