Ørsted Shareholders Approve 60 Billion Kroner Rights Issue Amid Downward Earnings Forecast

Ørsted's extraordinary general meeting approved a 60 billion Danish kroner rights issue, with the Danish government and Equinor committing to subscribe to their respective portions. The company revised its 2025 earnings forecast downward, expecting an adjusted EBITDA result of 24-27 billion kroner. Ørsted's shares rose 1.0% on the Copenhagen Stock Exchange, but the stock price has fallen 38% since the year began.

Ørsted A/S, a global leader in offshore wind energy, has taken significant steps to stabilize its financial position following recent challenges. At its extraordinary general meeting held on September 2, 2025, Ørsted approved a DKK 60 billion rights issue, with the Danish government and Equinor committing to subscribe to their respective portions. The company also revised its 2025 earnings forecast downward, expecting an adjusted EBITDA result of DKK 24-27 billion. Ørsted's shares rose 1.0% on the Copenhagen Stock Exchange, but the stock price has fallen 38% since the year began.

The rights issue is intended to bolster Ørsted's balance sheet amidst current challenges in the offshore wind sector. This move follows a series of setbacks, including halted projects in the U.S. and rising interest rates, which have eroded the company's return on invested capital (ROIC). The U.S. Bureau of Ocean Energy Management (BOEM) issued a stop-work order on the 80%-complete Revolution Wind project, adding DKK 3.5-4.5 billion in break-away costs [1]. Additionally, the cancellation of a partial divestment for Sunrise Wind further strained EBITDA projections.

Ørsted's strategic response to these challenges includes capital discipline and divestments. The company has secured financial close for the 632 MW Greater Changhua 2 project in Taiwan with support from 25 banks and export credit agencies [5]. However, the company has also suspended the Hornsea 4 project in the UK due to inflationary pressures and policy uncertainty [6]. Ørsted has also reduced its 2030 investment program by 25% to align with tighter credit metrics [7].

Investor sentiment remains divided. Fitch Ratings has affirmed Ørsted's BBB rating but revised its outlook to negative, citing U.S. market headwinds [8]. Meanwhile, institutions like Berenberg have upgraded the stock to "Buy," citing institutional support from the Danish government and Equinor [9]. This duality reflects the sector's paradox: offshore wind remains a strategic pillar for decarbonization, yet its financial viability is increasingly contingent on political and regulatory stability.

Equinor's decision to maintain its 10% ownership stake in Ørsted through the rights issue reflects confidence in the company's business and the future role of offshore wind in the energy mix. Equinor highlighted that industry consolidation and new business models are likely, and sees potential value in closer strategic collaboration with Ørsted [2].

Looking ahead, Ørsted's strategy hinges on accelerating divestments of non-core assets, deepening partnerships in stable markets, and lobbying for policy frameworks that reduce regulatory arbitrage. The company's reconfiguration of the Horn C4 project in the UK for potential future deployment illustrates this adaptive approach [11].

However, the long-term outlook remains clouded. A 25% reduction in the 2030 investment program, while prudent, risks ceding ground to competitors with more flexible capital structures [12]. Moreover, the U.S. market's political volatility highlights the sector's vulnerability to non-market forces.

Ørsted's earnings downgrade is a wake-up call for the offshore wind sector. While the company's capital discipline and strategic agility offer a blueprint for survival, the path to recovery will require navigating a thicket of regulatory, financial, and political risks. For investors, the key will be to distinguish between short-term turbulence and long-term value.

References:
[1] Ørsted provides preview of main points at today's extraordinary general meeting and adjusts full-year EBITDA guidance for 2025 [https://www.marketscreener.com/news/orsted-provides-preview-of-main-points-at-todaya-s-extraordinary-general-meeting-and-adjusts-full-y-ce7d59d8d18cfe2c]
[2] Equinor will participate in Ørsted’s planned Rights Issue, announced by Ørsted’s board on 11 August 2025, in order to maintain its 10% ownership. The move is intended to support Ørsted in strengthening its balance sheet amid current challenges in the offshore wind sector. [https://www.windtech-international.com/company-news/equinor-to-maintain-10-stake-in-orsted-through-rights-issue]
[5] DNV plays key Lenders' Technical Advisor role in Ørsted's ... [https://www.dnv.com/news/dnv-plays-key-lenders-technical-advisor-role-in-orsteds-greater-changhua-2-offshore-wind-financing-success/]
[6] The Financial Realities Behind Wind Project Suspensions ... [https://www.jdsupra.com/legalnews/from-ambition-to-attrition-the-3671582/]
[7] Ørsted cuts 2030 investment programme 25% due to rising ... [https://www.power-technology.com/news/orsted-2030-investment-programme-cuts/]
[8] Fitch revises Orsted's outlook to negative amid US project challenges [https://www.investing.com/news/stock-market-news/fitch-revises-orsteds-outlook-to-negative-amid-us-project-challenges-93CH-4225190]
[9] Oersted AS Stock Price Today | CSE: ORSTED Live [https://www.investing.com/equities/dong-energy-as]
[11] ORSTED A/S (ORSTED.CO) Q2 FY2025 earnings call transcript [https://finance.yahoo.com/quote/ORSTED.CO/earnings/ORSTED.CO-Q2-2025-earnings_call-311716.html/]
[12] Ørsted cuts 2030 investment programme 25% due to rising ... [https://www.power-technology.com/news/orsted-2030-investment-programme-cuts/]