This is a "gigantic" write-down for Ørsted, and in the long term it may mean something for the company's willingness to invest in, among other things, offshore wind turbines. This is the conclusion from Jacob Pedersen, head of equity analysis at Sydbank, after Ørsted announced on Wednesday night that it is stopping the Ocean Wind 1 and 2 projects in the USA.
- This could mean that the ambitions to build wind turbines in the future are throttled, because the financial belts cannot support that growth, he says.
Overall, Ørsted's downward adjustments amount to DKK 28.4 billion in the first nine months of the year. The majority of write-downs, DKK 19.9 billion, come from Ocean Wind 1.
Jacob Pedersen calls it "a significant shock", but he does not necessarily believe that it is life-threatening for Ørsted. When it is nevertheless serious for the company, it is about the risk of the credit bureaus downgrading Ørsted.
- This will make it more expensive for Ørsted to borrow money. As a result, Ørsted will become less competitive and find it more difficult to grow, says Jacob Pedersen.
Capital expansion an option
Ørsted also expects to have to set aside around DKK 8 to 11 billion. DKK additional for expenses associated with stopping the Ocean Wind 1 project in the fourth quarter. Overall, it is something that affects Ørsted's equity, emphasizes Jacob Pedersen.
Therefore, management's next step will be to find out how to restore balance in the company's finances. And here, Jacob Pedersen will not rule out that a capital increase may come into play.
- First of all, Ørsted must find out how it will grow in the future. This must be done taking into account whether you need more capital or how to restore the balance, he says.
A capital increase means that a company issues new shares to get more money in the coffers. This also means that the existing shares will be worth less.
/ritzau/
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