US tariffs on steel and aluminum have resulted in Ørsted writing down DKK 1.2 billion on US offshore wind projects. This is apparent from Ørsted's accounts for the first quarter of 2025, which were presented on Wednesday morning.
The tariff on steel and aluminum imports is 25 percent and has resulted in increased costs for Ørsted's two offshore wind projects in the US - Sunrise Wind and Revolution Wind.
The write-downs do not include the basic tariff of 10 percent, which US President Donald Trump presented at the beginning of April. And the additional tariff of 10 percent against the EU, which is currently on hold, is also not included in the write-downs.
If a total tariff of 20 percent is introduced, Ørsted will risk further write-downs on the American projects, the financial statements say.
Head of equity research: Write-downs within the range
The write-downs are actually within the range of what one would expect, estimates Jacob Pedersen, head of equity research at Sydbank.
- In my world, it is certainly manageable in relation to Ørsted's overall business and in relation to the economics behind the completion of the two American projects, he says.
Trump has criticized offshore wind several times since his inauguration. He also recently put a stop to the construction of a large wind farm near New York. If the president decides to stop Ørsted's two American projects, it will be costly, says Jacob Pedersen.
- When work on Ocean Wind was stopped in 2023, it cost over 20 billion kroner, so it would be a financial blow to Ørsted. But the question is whether it even makes sense to go in and stop these projects, says the head of equity research.
Wind farm almost complete
At a press conference on Wednesday, Ørsted CEO Rasmus Errboe said that Revolution Wind is almost complete, while Sunrise Wind is 35 percent complete. According to the media outlet MarketWire, the CEO said that Ørsted is 100 percent dedicated to continuing work on the projects.
- I will not speculate on potential regulatory changes that are beyond our control. We have all permits, and our projects have been subject to multiple evaluations and have followed all state and federal processes, he says according to the media.
According to Jacob Pedersen, this report is positive.
- It gives the feeling that these projects are not just something that you stop, he says.
/ritzau/
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