UPDATED: Ørsted has a new CEO. Rasmus Errboe will lead the energy company in place of Mads Nipper, who is stepping down. Ørsted states in a stock exchange announcement that Errboe will take office as early as February 1.
The dismissal of Nipper is justified by the need for fresh eyes on the business for the company, which has had to make large write-downs in recent years as a result of changing market conditions.
- The difficult conditions that the offshore wind industry is facing right now with bottlenecks in the supply chain, interest rate increases and changes in the regulatory landscape have affected our business in such a way that our focus has changed, says Chairman of the Board Lene Skole in the announcement.
Ørsted shares have suffered under Nipper
Mads Nipper started at Ørsted at the beginning of 2021. At that time, the company's shares were traded at a price of around 1350. On Thursday at the close of trading, the share price was 277. During his reign, Ørsted's installed capacity within for renewable energy grew from 11.3 GW to 18.2 GW.
But he also had to make a gigantic write-down of 28.4 billion DKK in November 2023 in recognition that a number of American projects could not be realized as expected. And as late as the fourth quarter of last year, Ørsted made another write-down of 12.1 billion DKK on, among other things, offshore wind projects in the USA. So far, Nipper has managed to stay in his post despite the major challenges, but virtually everyone else in the group management has been replaced under Nipper's leadership. Now it was the front man himself who had to stop.
- Leading Ørsted through four challenging but rewarding years has been a great privilege. Despite the obstacles we have encountered, we have reached many important milestones, and I am incredibly grateful for the efforts and commitment of our colleagues. I would like to send a big thank you to everyone who has supported and believed in our vision, and I wish Rasmus and the rest of the team all the best, says Mads Nipper, CEO and President of Ørsted.
Replacement knows Ørsted well
Rasmus Errboe has been brought in internally from the company, where he has worked for 13 years. Today, he is Deputy CEO and Commercial Director of Ørsted and since 2022 he has been a member of the Group Management.
- I am honored and humbled to take over the role of CEO of a company that I have been proud to work for for the past 13 years. I have an in-depth knowledge of our industry, and together with our talented employees, the management and I will work tirelessly to create value for our customers, our shareholders and our other stakeholders. Ørsted has a strong foundation with unique competencies, and I look forward to leading the transformation necessary to navigate the headwinds that Ørsted and our industry are facing, he says.
Rasmus Errboe was previously CFO of Ørsted's global offshore division, and it was he who led both the IPO in 2016 and the divestment of the oil and gas business in 2017.
Ørsted will present its annual accounts for 2024 on Thursday, February 6.
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