In a dramatic unraveling, Danish wind power leader Ørsted has seen its stock price go from a flotation high to an all-time low. The collapse, which wiped out nearly a third of its value, came after the company announced a $9 billion fundraising plan forced by hostile US policies.
The company’s unravelling began when the Trump administration “derailed” its business model. A White House review of all wind permits has made Ørsted’s US assets toxic, blocking its ability to raise money by selling a stake in its new eastern seaboard project.
This political shock has accelerated a decline already in motion due to tough economic conditions, including post-pandemic supply chain issues and rising interest rates. The situation has become a perfect storm of political and financial pressures.
The Danish state is supporting the $9 billion rights issue in an attempt to halt the unravelling and restore “financial robustness.” The company is fighting to salvage its US projects and maintain its global mission to power millions of homes with clean energy.