Danish Orsted lays off employees and freezes dividends – Kommersant
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Today, February 7, the Danish company Orsted, one of the largest players in the wind energy market, reported about plans for large-scale cost reduction. Orsted plans to cut up to 800 employees. The company also said it would “suspension” its dividend for 2023-2025. In addition, it will exit several markets – Norway, Spain and Portugal. Orsted also cut its wind farm construction target by 2030 from 50 GW to 35–38 GW.
Cost cuts were announced after publications financial results for 2023. Orsted’s net loss for this period amounted to DKK 20.2 billion ($2.9 billion). CEO Mads Nipper spoke of the need to make Orsted “a leaner, leaner company.” Its difficulties are related, among other things, to the fact that Orsted had to withdraw from a large-scale project in the USA. In November Orsted stopped construction of two wind farms off the coast of New Jersey, Ocean Wind 1 and 2. The decision was caused by rising construction costs, supply problems, and rising interest rates. Losses associated with these projects were estimated at $5.6 billion.
Experts note, that the wind power industry as a whole has been facing serious challenges lately. In 2023, dozens of projects were postponed in the UK, the Netherlands and Norway. Among the reasons are difficulties with supply chains, rising interest rates, rising prices for materials, low prices for electricity obtained in this way, and technical difficulties in the production of turbines.
About the wind energy market – in material “Ъ”.
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