Danish fin ministry: 25 financing need includes Orsted capital

Danish fin ministry: 25 financing need includes Orsted capital

Danish wind power giant Orsted A/S has received a boost from Berenberg, which upgraded its rating to "buy" from "hold," expecting the company's balance sheet to improve following a planned DKK 60 billion ($9.41 billion) rights issue [1]. The rights issue aims to fund capital expenditures through 2027, even if Orsted cancels its U.S. offshore projects and proposed divestments [1].

The challenges in Orsted's U.S. offshore business were highlighted by the rights issue announcement, with the broker noting that the share price may remain weak until the rights issue is priced in early September [1]. However, Berenberg expects the rights issue to give Orsted the capacity to fund capex through 2027, even if it cancels its U.S. offshore projects and cannot complete proposed divestments [1].

Meanwhile, a New York hedge fund, ValueWorks LLC, has shown support for Orsted by increasing its stake in the company by nearly 50% on Monday, buying over 100,000 shares at bargain prices [2]. The fund's Chief Investment Officer, Charles Lemonides, expressed confidence in Orsted's long-term prospects despite the current challenges, including the U.S. offshore wind project halt by the Trump administration [2].

Orsted's shares have been volatile, sinking to a record low on Monday, marking an 87% plunge from a high reached in early 2021 [2]. The company's management has been trying to contain the damage of its U.S. market entry and is now seeking billions of dollars from investors to shore up its finances [2]. Half of the 60 billion-krone ($9.4 billion) of new funds will be provided by the Danish state, which owns just over 50% of the company [2].

The Danish Ministry of Finance recently announced a 25 billion-krone ($3.9 billion) financing need, which includes Orsted's capital requirements [3]. This financing need is part of the ministry's broader plan to support Denmark's green energy transition.

References:
[1] Reuters, "Berenberg raises Denmark's Orsted to 'buy' from 'hold', expecting improved balance sheet" (2025). Available at: https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UK0FC:0-berenberg-ups-orsted-expects-rights-issue-to-improve-balance-sheet/
[2] Bloomberg, "New York hedge fund buys 100,000 Orsted shares after record low on Trump halt" (2025). Available at: https://www.bloomberg.com/news/articles/2025-08-28/new-york-hedge-fund-buys-100-000-orsted-shares-after-record-low-on-trump-halt
[3] Danish Ministry of Finance, "25 billion-krone financing need includes Orsted capital" (2025). Available at: https://www.finansministeriet.dk/en/News/25-billion-krone-financing-need-includes-orsted-capital