Write-downs slice billions from Ørsted’s profit

Energy company Ørsted faced financial storms leading to billions in write-downs and a plummeting stock. Their 2024 earnings report, with a profit of just 16 million DKK, reflects the collapse of the financial foundation for major offshore wind projects. Newly appointed CEO, Rasmus Errboe, expressed gratitude to colleagues for persevering amid uncertainty and cuts. Rising interest rates made owning offshore wind farms more expensive, necessitating write-downs of projects worth billions. In the fourth quarter alone, Ørsted wrote down 12.1 billion DKK. With Errboe’s recent appointment as CEO, the company announced a significant reduction in its 2030 investment plans from 270 billion to 210-230 billion DKK, citing challenges with its American offshore wind portfolio and the need to strengthen capital structure and value creation. Despite this, Ørsted is satisfied with the 32 billion DKK operating result in the past year, mainly due to offshore wind parks.