The high cost of politics has been laid bare as Danish wind giant Ørsted saw its value tank by nearly a third following a hostile policy shift in the US. The company’s stock hit rock bottom after it was forced to announce a $9 billion capital raise to offset the damage.
Ørsted directly blamed “recent material developments in the US” under the Trump administration for derailing its business model. Its standard practice of selling stakes in new projects to fund construction has been blocked, as the administration’s anti-wind stance has crushed the value of its American ventures.
This political blow has landed on an industry already struggling with economic headwinds, including supply chain inflation and higher interest rates. The administration’s shock move to halt a competitor’s project, even with prior approvals, has created a climate of fear and uncertainty.
The Danish government is backing the $9 billion rights issue to help its national champion weather the crisis. CEO Rasmus Errboe described the situation as “extraordinary,” stating the funds are needed to provide “financial robustness” for its global operations.