Offshore wind developer Ørsted's Q1 beats forecasts
Ørsted said today it will abandon a major offshore wind farm project in Britain, citing a deteriorating global business environment for developing renewable energy.
Ørsted's market value has fallen by around 80% from its 2021 peak as costs have risen, supply chains have been disrupted and US President Donald Trump's opposition to offshore wind has sapped investor confidence.
The Danish renewable energy company said cancelling Hornsea 4 would cost it up to 5.5 billion Danish crowns ($837.85m) in the form of breakaway fees and write-downs, but that the value it would create had fallen.
"The combination of increased supply chain costs, higher interest rates, and increased execution risk have deteriorated the expected value creation of the project," CEO Rasmus Errboe said in a statement.
The company today also posted first-quarter profit before interest, tax, depreciation and amortisation, and excluding new partnerships and cancellation fees, of 8.6 billion Danish crowns for the January to March.
Analysts had on average expected an EBITDA of 7.88 billion crowns, a poll compiled by the company showed.
Ørsted kept its 2025 outlook, excluding new partnerships and cancellation fees, unchanged, but the outlook did not include the cost of the Hornsea 4 cancellation.
The once promising US market has proved challenging for Ørsted, resulting in delays and impairment charges, even before Trump's opposition to wind power.
Norway's Equinor said last month it would halt offshore construction of its Empire Wind I project in New York State, following a stop-work order from US Interior Secretary Doug Burgum.
Ørsted today said it would assess any further impact from US tariffs and regulatory changes.
While Trump has backed the continued use of fossil fuels, Britain is striving to decarbonise its electricity to help curb global warming.
Meanwhile, the company said yesterday that it had started construction on its second Irish solar farm in Ballinrea, located between Carrigaline and Cork city.
