Losses of the Danish Orsted led to changes in management – Kommersant
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The Danish company Orsted, the world’s largest operator of wind farms by number of power units, announced changes in its management. This was preceded by the company’s withdrawal from two large projects to build wind farms off the coast of the United States, as well as significant financial losses associated with this.
As noted in a statement by the Danish company’s CEO Mads Nipper, Orsted, like other companies in the industry, “are experiencing the impacts of a very difficult and unstable business environment.” In this regard, the board of directors dismissed CFO Daniel Lerup and COO Richard Hunter. A search for candidates for these positions is currently underway.
Let us remind you, that on November 1, Orsted announced that it was ceasing construction off the coast of New Jersey of two wind farms, Ocean Wind 1 and 2, with a total capacity of 2.25 thousand MW. The decision is due to rising construction costs, supply problems, and rising interest rates. Orsted’s losses associated with the difficulties of implementing the project in the face of rising costs, as well as its cancellation, will amount to $5.6 billion.
On the day of the announcement of its withdrawal from this project, Orsted shares fell by almost 26%. Since the beginning of the year, they have already fallen in price by 52%. In the third quarter, the company’s year-on-year net income was down 342%, revenue fell nearly 48%, and earnings per share fell 37%. Meanwhile, Orsted shares responded to the announcement of a management shakeup with a strong 5% rise.
Kommersant wrote in an article about how the EU is trying to coordinate the development of green, nuclear and coal generation “European energy industry is balancing on the brink of renewable energy sources”.
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