Orsted's Quarterly Net Loss: Battling Trump's Anti-Wind Policies
The Danish renewable energy giant Orsted reported a quarterly net loss of 1.7 billion Danish kroner ($261.8 million) for the July-September period, a significant decline from the profit of 5.17 billion Danish kroner in the same period last year. This loss is attributed to third-quarter impairment costs of nearly 1.8 billion Danish kroner, despite the company's strong operational performance and progress in its construction portfolio.
However, Orsted remains confident in its full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of 24-27 billion Danish kroner, excluding earnings from new partnerships and cancellation fees. This guidance was reiterated after the company announced a significant deal to sell a 50% stake in its Hornsea 3 offshore wind farm in the U.K. to Apollo Global Management for $6 billion.
The company's CEO, Rasmus Errboe, expressed satisfaction with the progress across the construction portfolio and solid operational performance. He emphasized the focus on delivering the business plan to maintain Orsted's position as a global leader in offshore wind with a strong European foothold.
Despite the challenges, Orsted's shares were 1.2% higher on Wednesday morning, indicating some investor confidence in the company's ability to navigate the current landscape. However, this positive sentiment is contrasted by the White House's efforts to halt ongoing wind projects and suspend new licensing, which have contributed to a sharp fall in the stock price this year.
In contrast, Danish wind turbine firm Vestas reported stronger-than-expected third-quarter earnings, with an operating profit of 416 million euros ($477.8 million) for the July-September period. This positive news led to a 14% jump in Vestas' share price, reflecting investor optimism about a successful turnaround after years of losses.
Vestas CEO Henrik Andersen acknowledged the headwinds facing the wind industry, particularly from the Trump administration. He highlighted the company's well-established supply chain in the U.S. and expressed a commitment to supporting the U.S. market, despite the challenges posed by public perception of wind turbines.
