Denmark's Orsted Raises £7bn Amid Trump's War on Renewables

Orsted, the world's largest offshore wind operator, has seen its shares slump by 30% after it tapped investors for £7bn to plug a financial hole caused by US President Donald Trump's opposition to wind farms. Trump has campaigned on a promise to ban new wind farms and recently branded turbines "a con job." Orsted blamed the "extraordinary situation" in the US for scuppering its plan to sell a stake in a project off the US east coast. The company will instead raise money through a rights issue.

Title: Orsted's Share Plunge Reflects US Wind Power Opposition

Orsted, the world's largest offshore wind operator, has seen its shares slump by 30% after it tapped investors for £7bn to plug a financial hole caused by US President Donald Trump's opposition to wind farms. Trump has campaigned on a promise to ban new wind farms and recently branded turbines "a con job." Orsted blamed the "extraordinary situation" in the US for scuppering its plan to sell a stake in a project off the US east coast. The company will instead raise money through a rights issue.

The Danish wind farm developer, Orsted, faced a significant setback when its stock price plummeted on Monday following the announcement of a 60 billion crown ($9.4 billion) rights issue. This move aims to strengthen the company's financial position amidst the ongoing opposition to wind power from US President Donald Trump.

Trump's opposition to wind power has had a profound impact on the offshore wind industry. His administration's decision to halt licensing for wind projects in January sent shockwaves through the sector, further complicating an already challenging environment characterized by high inflation and logistical hurdles [1].

Orsted's CEO, Rasmus Errboe, stated that the company is in an extraordinary situation with the adverse market development in the US on top of the past years’ macroeconomic and supply chain challenges. The company's shares fell by as much as 29% to a nine-year low of 220.2 crowns, and by 0815 GMT, they had fallen to 228.4 crowns, marking a 26% decrease [2].

The Danish state will maintain its majority ownership in Orsted by subscribing to 50.1% of the new share issue, aligning with its current stake in the company. Equinor, a Norwegian company with a 10% stake in Orsted, stated through a spokesperson that it would "assess the proposal" [3].

Orsted has halted the planned partial divestment of its Sunrise wind project off New York, citing market uncertainty in the US. The company has initiated the sale of its European onshore wind business, projecting proceeds exceeding 35 billion crowns from this divestment. The proceeds from the rights issue would bolster Orsted's capital structure, aiding in the development of 8.1 gigawatts of offshore wind projects under construction and slated for completion by 2027 [1].

In the first half of 2025, Orsted's earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding new partnerships and cancellation fees, increased by 9% year-on-year, reaching 13.9 billion crowns. The company reiterated its full-year outlook, projecting an adjusted EBITDA of 25 billion-28 billion crowns and gross investments of 50 billion-54 billion [2].

References:
[1] https://www.tradingview.com/news/invezz:6c4df64f0094b:0-denmark-s-orsted-seeks-9-4b-amid-us-wind-power-opposition/
[2] https://www.thisismoney.co.uk/money/markets/article-14992381/Trumps-war-Net-Zero-forces-wind-giant-Orsted-raise-extra-cash.html
[3] https://www.reuters.com/world/europe/orsted-plunges-it-seeks-94-billion-cope-with-trumps-hostility-wind-power-2025-08-11/