Ørsted has decided to adjust its business plan and reduce its investment plans by 25 percent up to 2030. In the period 2024 to 2030, Ørsted is now planning an investment program of 210 to 230 billion. DKK. Previously, Ørsted had a goal of investing 270 billion. DKK in the period up to 2030. The energy group writes this in a company announcement.
The reduction in the investment program is justified in the announcement by the fact that Ørsted has recently been hit by challenges. The challenges are particularly related to the company's American offshore wind portfolio.
In November 2023, Ørsted had to make a gigantic write-down of 28.4 billion. DKK. This was done in recognition that a number of American projects could not be realized as expected. And as recently 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.
The decision is also related to the more general challenges that the renewable energy industry is experiencing, the announcement says.
New CEO will ensure stronger balance
The new investment program will be financed by a tighter and more value-creating prioritization, says the newly appointed CEO, Rasmus Errboe, in the announcement.
- We are doing this to ensure a stronger balance that supports solid creditworthiness and to ensure that we only invest our capital in the most financially attractive opportunities, says Rasmus Errboe, who took over the CEO position from Mads Nipper, who resigned on Friday.
With the new plan, Ørsted no longer has a goal of having an installed capacity for renewable energy of 35 to 38 GW by the end of 2030. The same applies to the goal of an operating profit of 39 to 43 billion. DKK by the end of 2030.
On Thursday, Ørsted will present its annual report. According to the announcement, the results for the full year are in line with expectations, with an operating profit of DKK 24.8 billion.
/ritzau/
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