Wind farm developer Orsted's plan to raise much-needed capital is at risk following a U.S. order to halt construction of a near-complete project, and the Danish group's share price could come under pressure on Monday, analysts said.
The Trump administration's Bureau of Ocean Energy Management (BOEM) published its stop-work order late on Friday, forcing the suspension of a project that was 80% complete with all offshore foundations in place and 45 out of 65 wind turbines installed.
The timing of the halt to Revolution Wind off Rhode Island is particularly damaging for Orsted, which announced earlier this month a plan to raise 60 billion Danish crowns ($9.42 billion) through a rights issue.
"This is a huge hurdle with regards to raising capital," Sydbank analyst Jacob Pedersen told Reuters. "I've experienced a lot in my more than 20 years as a stock analyst, but this tops it all, I'm stunned," he added.
AlphaValue analyst Pierre-Alexandre Ramondenc said the U.S. move could jeopardise the success of the rights issue, which he described as "already highly dilutive."
"The news came as a major shock and amounts to nothing less than political hostage-taking by the U.S. administration, given the project's advanced stage," Ramondenc said.
On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending environmental and economic review of projects. He has repeatedly criticised wind energy as ugly, unreliable and expensive.
Orsted's share price, already down 30% since announcing its plan on 11 August, now faces further downside risk, the analysts said.
Orsted has said it will update investors on the impact of the BOEM order but has not said when and has declined to comment further.
The company is 50.1% owned by the Danish state, and Denmark's Finance Minister Nicolai Wammen said he was "naturally following the case closely".
Planned U.S.-Iran talks in Switzerland on Friday will no longer take place after Vice President JD Vance withdrew from a scheduled trip to meet Irania...
Labour mayor Andy Burnham cleared a path to ousting British Prime Minister Keir Starmer after winning a parliamentary seat in northern England on Frid...
World Cup action delivered impressive wins and late drama on 18-19 June. Mexico booked their place in the knockout stage as Group A winners, while J...
Israeli Foreign Minister Gideon Saar has said he is severing “all contact” with European Union foreign policy chief Kaja Kallas, following remarks...
Ukraine and Germany have signed an agreement to strengthen anti-ballistic capabilities, Ukrainian President Volodymyr Zelenskyy announced on Thursday,...
Planned U.S.-Iran talks in Switzerland on Friday will no longer take place after Vice President JD Vance withdrew from a scheduled trip to meet Iranian negotiators, Swiss authorities said.
Labour mayor Andy Burnham cleared a path to ousting British Prime Minister Keir Starmer after winning a parliamentary seat in northern England on Friday in what could be most consequential local election in more than six decades.
World Cup action delivered impressive wins and late drama on 18-19 June. Mexico booked their place in the knockout stage as Group A winners, while Jonathan David's hat-trick inspired Canada to a 6-0 thrashing of Qatar.
Israeli Foreign Minister Gideon Saar has said he is severing “all contact” with European Union foreign policy chief Kaja Kallas, following remarks attributed to her that reportedly compared Israel’s policies toward Palestinians to apartheid-era South Africa.
Donald Trump has said the U.S. will resume bombing Iran if Tehran doesn't "behave," at the sidelines of the G7 summit in France. Earlier, the U.S. President criticised Israel for its tactics against Hezbollah, saying it was unnecessary to bomb entire apartment buildings to tackle militants.
U.S. President Donald Trump sought a deal with Iran "out of deperation," Iranian Supreme Leader Mojtaba Khamenei has said, in a statment on social media. Khamenei added that he himself "held a different view," to Trump, but allowed the agreement after receiving assurances from Iran's President.
Britain has announced an additional £8 million ($11 million) to help Pakistan combat illegal migration, human trafficking and organised crime, while praising Islamabad's role in diplomacy that helped secure the recent U.S.-Iran agreement.
Lionel Messi matched the all-time World Cup scoring record as Argentina began their title defence with a 3-0 win over Algeria. Austria, France and Norway also secured opening victories in Group J and Group I matches on Tuesday.
Caleb Yirenkyi’s stoppage-time goal secured a 1-0 win for Ghana over Panama as World Cup action delivered a mix of late drama and key results. Colombia and England also began their campaigns with victories, while DR Congo held Portugal in a historic 1-1 draw and Austria beat Jordan 3-1.
Scientists have identified almost 166,000 square kilometres of coral reefs worldwide that appear capable of surviving and recovering from the impacts of climate change, offering new hope for some of the planet's most vulnerable marine ecosystems.
Australia's weather bureau warned on Tuesday that an El Niño weather pattern has formed in the tropical Pacific and could intensify in the second half of 2026, becoming one of the strongest events recorded in seven decades.
France’s parliament has formally recognised state responsibility for the use of the toxic pesticide chlordecone in Martinique and Guadeloupe, marking a significant step in addressing decades of environmental contamination and public health concerns.
Financial markets are significantly underestimating the economic impact of biodiversity loss, potentially leaving countries exposed to sovereign debt crises and rising borrowing costs, according to new research published on Friday.
Wildlife researchers have identified dozens of previously unknown insect species during an expedition to Angola’s remote Lisima Plateau, a conservation group announced on Wednesday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment