Orsted secures $9.4 billion rights issue amid Trump's offshore wind project blockade.

Denmark's Orsted received shareholder approval for a $9.4 billion rights issue to raise emergency capital. The move comes after the White House blocked the company's nearly complete windfarm, prompting a record-low stock price. Orsted also cut its full-year operating profit outlook due to lower-than-normal wind speeds. Shares rose 2.2% on the news.

Denmark's state-controlled offshore wind developer, Orsted (ORSTED.CO), has secured shareholder approval for a $9.4 billion emergency rights issue. The move comes amidst significant challenges, including the White House's halt on the company's nearly complete wind farm, Revolution Wind, and lower-than-normal wind speeds impacting operating profits. Shares of Orsted rose 2.2% on the news.

Orsted, once celebrated as a trailblazer in offshore wind, now finds itself in dire straits. The company has transformed from oil producer DONG Energy into a global renewables leader, but supply chain disruptions, surging interest rates, project delays, and the Trump administration's opposition to wind power have taken a toll. Orsted's shares have plummeted by 85% from their 2021 peak [1].

The rights issue is critical for Orsted's survival and its ability to retain its credit rating. Two-thirds of the fresh capital is earmarked for Sunrise Wind, a project that saw potential co-investors flee after the Trump administration ordered Norway's Equinor (EQNR.OL) to halt a neighboring wind farm in April [1]. U.S. officials also issued a stop-work order for the nearly completed Revolution Wind facility last month, prompting the joint venture running the project to file a lawsuit against the Trump administration over the decision [2].

Orsted's CEO, Rasmus Errboe, stated that the rights issue is essential for continuing to lead the expansion of offshore wind in Europe. However, ratings agency S&P Global warned that the equity raise might only buy the company three to six months of relief from construction delays before facing additional credit pressures. S&P already downgraded Orsted to BBB- in August, the lowest investment-grade rating [1].

Norwegian state-controlled energy firm Equinor, a 10% shareholder in Orsted, has pledged to inject up to 6 billion crowns ($941.2 million) into the rights issue, hinting at a deeper strategic collaboration between the two companies [1].

The extraordinary general meeting is scheduled to begin at 0700 GMT in Copenhagen. The rights issue is expected to be approved with a two-thirds majority.

References:
[1] https://www.reuters.com/business/energy/trumps-wind-war-clouds-orsteds-94-billion-survival-plan-2025-09-05/
[2] https://www.reuters.com/business/energy/orsted-wins-approval-emergency-rights-issue-trump-threatens-us-projects-2025-09-05/