Orsted shares down 17% as US project stumbles, Trump's anti-wind power policy hits

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Finance

Posted By Global Banking and Finance Review

Posted on January 21, 2025

Orsted shares down 17% as US project stumbles, Trump's anti-wind power policy hits

COPENHAGEN (Reuters) - Shares in the world's largest developer of offshore wind Orsted plunged 17% on Tuesday after warning late on Monday of higher costs and delays to a crucial U.S. offshore project.

Further complicating Orsted's ambitions in the United States, President Donald Trump on his first day in office signalled an end to U.S. government support for wind power, saying wind mills are ugly, expensive and harm wildlife.

Orsted late on Monday posted an impairment charge of 12.1 billion Danish crowns ($1.69 billion) in the fourth quarter, citing a delay and higher costs for its Sunrise Wind project, which is expected to be the largest U.S. offshore wind project once it is completed.

"This impairment, and especially the continued construction challenges, are very disappointing," CEO Mads Nipper told investors on Tuesday.

The Danish company also flagged higher U.S. financing costs and impairments on seabed leases.

U.S. President Donald Trump on Monday suspended new federal offshore wind leasing pending an environmental and economic review.

Orsted's profit warning was issued before Trump's latest remarks on offshore wind, and the Danish group declined to comment on the potential impact from the presidential order.

"We see higher risks for the US offshore wind industry given President Trump's policies against the industry, including the risk of no further U.S. offshore wind development over the medium term," Barclays analysts said in a research note.

(Reporting by Stine Jacobsen, editing by Terje Solsvik)

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