Orsted plunges as it seeks $9.4 billion to cope with Trump’s hostility to wind power

Written by Yaqoub Gonaett Pedersen and Surin Gibson

Copenhagen (Reuters) -It decreased in Ortid to the lowest level in the record on Monday, when the wind farm developer asked shareholders from $ 9.4 billion to help finance an American project, after potential partners were postponed by American runner Donald Trump in wind power.

The issue of the rights of 60 billion crown (9.4 billion dollars) is about half of the market value of the Danish company as of the closure of Friday.

It is struggling in recent years with high inflation and logistical problems that led to high costs, and the wind industry abroad faced another setback when Trump suspended the license on his first day in his position in January.

“Ordit and our manufacture in an extraordinary situation with the development of the negative market in the United States, in addition to the challenges of the macroeconomic and the supply chain in the past years,” said CEO Rasmos Erbo.

Trump carried a promise to end the marine wind industry, saying it is very expensive and hurts whales and birds.

Orthter said two -thirds of the new capital will be used to finance the sunrise building – one of the remaining two projects under development off the American East Coast.

The project’s potential investors were withdrawn after the Trump administration in April ordered the reduction of the development of the entire neighboring wind farm. However, the matter was reversed, which sent shock waves across the industry, the following month.

Erbo said: “In the wake of the work order to stop in the Empire Empire Wind project, the risks of the American marine wind market have increased significantly between investors and banks,” Erbo said.

Orasted depends on selling full or partial risks on marine wind farms to finance new projects. Errboe, who replaced former CEO Mads Nipper earlier this year, sought to reduce costs and cancel projects in the United States and Britain.

The company said that the remaining revenues expected of the rights issue will enhance Ortid’s funds and help it develop 8.1 GB of marine wind projects currently under construction by 2027.

Orsted shares have lost nearly a third of their value to a record level. In 1327 GMT, 31.2 % decreased in 212 crowns.

“The marine wind market in the United States was subjected to Shell after Trump took office. But things began to go badly to Ortond in front of Trump,” said Jacob Pedersen, a Sidbank analyst, said.

“The only option”

In recent years, Orsted has canceled some American projects and seized huge holidays due to the delay in the supply chain and inflation and the transfer of support policies in the wind market in the emerging United States.