UPDATED: It is probably only the beginning of a major change when the energy company Ørsted parted ways with two top executives on Tuesday as a result of a severe downturn this year. This is the assessment of investment economist at Nordnet Per Hansen. Ørsted has reshuffled on Tuesday as a result of the company's share falling 55 percent this year.
- Today's organizational changes are probably only the beginning of a major change, which must inevitably also include that the cost level must be lowered in general and that broader staff reductions are inevitable, says Per Hansen in a written comment.
He believes that the company is forced to adapt.
CFO Daniel Lerup and COO Richard Hunter are leaving the company with immediate effect. The Danish energy giant announced this on Tuesday morning. Ørsted and the rest of the industry are experiencing "challenging and unstable market conditions," says a stock exchange announcement from Mads Nipper, CEO.
Ørsted has experienced a significant downturn in 2023. Therefore, it may also have consequences higher up in management, according to the economist.
- Investors have been waiting for Ørsted's organizational response. I wonder if a significant number expected that Mads Nipper was in imminent danger of being fired? That was not the case, at least not at first, writes Per Hansen.
Analyst: CEO's farewell should be received positively
Ørsted shares have had an extremely difficult time since August, when the first report of large write-downs in the American business for offshore wind turbine projects landed. Since then, more bad news has followed. The stock has fallen by more than 50 percent this year.
Ørsted's decision to dismiss the company's CFO and COO should be welcomed by the market. This is the assessment of Jenny Ping, an analyst at Citi.
- The market should welcome a change in management due to several previous disappointments and a falling share price, she writes according to MarketWire, citing Bloomberg.
However, she adds that it will also create uncertainty.
Ørsted's largest owner is the Danish state, which means taxpayers.
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