Ørsted is dropping the sale of part of the American offshore wind project Sunrise Wind and will instead strengthen its capital structure through a capital increase with pre-emptive rights for existing shareholders of DKK 60 billion.
The Danish state participates with its 50.1 percent ownership stake, and the remaining shares are fully guaranteed by Morgan Stanley & Co. International plc., if other existing shareholders do not exercise their purchase rights. Ørsted said in a statement.
The decision is due to the fact that it is not possible to sell part of Sunrise Wind on terms that sufficiently strengthen the economy. Without the sale, Ørsted will have to finance the entire project itself, which requires around DKK 40 billion. DKK. The proceeds from the capital injection will therefore be used, among other things, to cover this need and finance the construction of a total of 8.1 GW of offshore wind until 2027 and ensure the company's creditworthiness.
- In light of the unprecedented regulatory developments in the US, we have conducted a thorough review of all options. Ørsted's board of directors has concluded that the planned capital injection is the best way forward for the company and its stakeholders. The capital injection will strengthen Ørsted's capital structure and provide financial robustness in the years 2025 to 2027, says Lene Skole, chairman of the board of directors of Ørsted.
Other divestments and updated targets
Ørsted states that the company continues to work with partial divestment processes of the offshore wind farms Changhua 2 and Hornsea 3 and is investigating a full divestment of the European Onshore business. The company expects to raise over DKK 35 billion through divestments in the period 2025-26. CEO Rasmus Errboe emphasizes that the initiative is necessary to deliver on the company's business plan.
- The future prospects for offshore wind are strong in our core markets in Europe. However, Ørsted and the industry are in an extraordinary situation with a negative market development in the US, which comes on top of recent years' macroeconomic and supply chain challenges. The capital injection will strengthen our ability to realize the full potential of our existing portfolio and secure future value-creating opportunities within offshore wind, says Rasmus Errboe, CEO of Ørsted.
In connection with the capital injection, Ørsted is updating its medium-term goals. The company is planning an investment program of approximately DKK 145 billion in the period 2025-27 for the current project portfolio. EBITDA is expected to be over DKK 28 billion. DKK in 2026 and over DKK 32 billion in 2027. The return on invested capital (ROCE) is expected to average approximately 11 percent in the period 2025-27 and over 13 percent in the period 2028-30. Ørsted maintains its objective of solid creditworthiness and expects to resume dividend payments from the financial year 2026.
In order to approve the capital injection as soon as possible, Ørsted is calling an extraordinary general meeting. It will be held on 5 September 2025.
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