Latest news with #Errboe
Powys County Times
07-05-2025
- Business
- Powys County Times
Work halted on huge windfarm in North Sea amid rising costs
Energy giant Orsted has said it is stopping work on one of the UK's biggest upcoming offshore wind projects, in a blow to the Government's clean energy plans. The world's largest offshore wind developer said it will halt its Hornsea 4 project, a massive planned wind farm in the North Sea that could have powered more than one million homes. Orsted said the project had suffered rising supply chain costs, higher interest rates and increasing risk of not finishing the project on time. It said the problems had 'increased the execution risk and deteriorated the value creation of the project'. The move comes as the Government tries to massively ramp up Britain's renewable energy generation capacity, mainly through offshore and onshore wind and solar power. The transition is part of its plan to decarbonise the power grid by 95% by the end of this decade. Chief executive Rasmus Errboe said: 'I'd like to emphasise that Orsted continues to firmly believe in the long-term fundamentals of and value perspectives for offshore wind in the UK. 'We'll keep the project rights for the Hornsea 4 project in our development portfolio, and we'll seek to develop the project later in a way that is more value-creating for us and our shareholders.' The Danish energy company said the move could cost it up to £513 million in break costs from cancelling contracts with suppliers. A spokesperson for the Department for Energy Security and Net Zero said: 'We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Orsted to get Hornsea 4 back on track. 'We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets.' Orsted has had a difficult few years, after high interest rates worsened the economics of developing renewable energy, and it recently replaced its former chief executive with Mr Errboe earlier in 2025. It said in February that it would cut investment to 2030 by 25%, as part of an attempt to restore its falling share price, which has dropped more than one-third in the last year. Meanwhile, the state-backed firm's recent foray into the US was also delivered a significant blow when Donald Trump was elected, promising to halt green energy and refocus on fossil fuels. Andrew Bowie, the Conservative acting shadow energy secretary, said the decision indicated that the UK Government's net zero goal is 'not sustainable'.
France 24
07-05-2025
- Business
- France 24
Danish firm Orsted halts huge UK offshore wind farm project
The 2,400-megawatt Hornsea 4 project would have complemented two existing Orsted wind farms and a third under construction. But Orsted said in a statement that the project "has seen several adverse developments", including rising supply chain costs, higher interest rates and an increased risk in building it on the planned timeline. "We've decided to discontinue the development of the Hornsea 4 project in its current form," Orsted chief executive Rasmus Errboe said. "The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation," he added. The existing Hornsea 1 and 2 wind farms and the Hornsea 3 project will have a combined capacity exceeding five gigawatts. Orsted said shelving the Hornsea 4 project would cost the company between 3.5 billion and 4.5 billion kroner ($533 million and $685 million). "I'd like to emphasise that Orsted continues to firmly believe in the long-term fundamentals of and value perspectives for offshore wind in the UK," Errboe said. "We'll keep the project rights for the Hornsea 4 project in our development portfolio, and we'll seek to develop the project later in a way that is more value-creating for us and our shareholders." The British government said it would work with Orsted to revive the project. "We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe," said a spokesperson for Britain's Department for Energy Security and Net Zero. "We will work with Orsted to get Hornsea 4 back on track," the spokesperson said. Orsted was already dealt a $4 billion blow in 2023 when it cancelled wind farm projects in the United States, a crucial market for the group. Now the entire sector faces a major challenge in the United States after President Donald Trump froze federal permitting and loans for all offshore and onshore wind projects. Orsted also reported first-quarter results on Wednesday showing sales rose eight percent to 20.7 billion kroner, lower than the 21.7 billion kroner forecast by analysts surveyed by financial data firm FactSet. Its net profit, however, nearly doubled to 4.8 billion kroner.
Yahoo
07-02-2025
- Business
- Yahoo
Wind power developer Orsted sees 2025 core profit equal to or above 2024
By Louise Rasmussen COPENHAGEN (Reuters) -Orsted, the world's biggest offshore wind power developer, said on Thursday it expected core profit this year to be equal to, or above 2024, a day after cutting investment plans for coming years, sending its shares higher. After the market close on Wednesday, Orsted said it had decided to scale back the total amount it planned to invest for the years through 2030 by about 25% to shore up its finances in a challenging market. It also said it saw no need to raise new cash, and that the revised plan would allow the group to keep cutting costs given it would construct at a slower pace than previously planned. Shares in the Danish company were up 6% in early trade, trimming a year-to-date fall to 8%. Sydbank analyst Jacob Pedersen said many investors had feared the company would announce a capital increase. Offshore wind companies have faced challenges including rising costs, supply chain issues and planning delays. President Donald Trump created further uncertainty by suspending offshore wind leases on his first day in office last month. "Our ambition is to solidify our position as the undisputed leader in offshore wind," Rasmus Errboe, the company's CEO since Feb. 1, told journalists in a media call. He said the company expected market challenges to continue in 2025. "Our number one priority will be to deliver on our construction programme," he later added. Orsted said on Thursday most of its projects were progressing according to plan, but warned it continued to face supply chain and construction challenges at its two U.S. offshore construction projects Revolution Wind and Sunrise Wind. "It would not be right for me to issue any guarantees in terms of further impairments," Errboe said, referring specifically to the two U.S. projects. Orsted guided for 2025 operating profit before interest, tax, depreciation, amortisation, new partnerships and cancellation fees of between 25 billion and 28 billion crowns ($3.5 billion-$3.9 billion). The outlook broadly matched analysts' average expectations, according to a company-provided poll. In its full-year earnings report on Thursday, Orsted confirmed a preliminary reading for 2024 of 24.8 billion crowns. "The year 2024 proved to be a challenging year for the industry and for Orsted," Errboe, said in the statement. "We've experienced headwinds and have therefore taken necessary actions." Shares in Orsted were up 4.37% at 1009 GMT. ($1 = 7.1798 Danish crowns) Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Orsted replaces CEO as offshore wind industry struggles
By Stine Jacobsen and Isabelle Yr Carlsson COPENHAGEN (Reuters) - Orsted Chief Executive Mads Nipper will step down to be replaced by company insider Rasmus Errboe, the world's biggest offshore wind developer said on Friday, as it seeks to arrest an 83% slump in its share price since its 2021 peak. The Danish renewables firm has been crucial to establishing a European industry for wind at sea, but the industry has struggled in recent years with rising costs, supply chain bottlenecks, higher interest rates, and regulatory changes. Its push into the nascent U.S. market has also proved challenging, resulting in delays and impairment charges, and has been complicated by U.S. President Donald Trump's outspoken opposition to wind power. Trump has suspended federal offshore wind leasing pending an environmental and economic review. Nipper, who took the helm in January 2021, faced questions over his stewardship as losses mounted and the share price fell. "The impacts on our business of the increasingly challenging situation in the offshore wind industry ... mean that our focus has shifted," Orsted Chair Lene Skole said in a statement, without elaborating. "Therefore, the board has today agreed with Mads Nipper that it's the right time for him to step down." The former oil and gas company's woes reflect the changing fortunes of wind power globally as soaring costs, delays and limited supply chain investment prompt investors to reassess the speed of the energy transition. Once a green investor favourite, Orsted's market value stood at $15.1 billion at Thursday's close, a far cry from its peak of $93.9 billion in January 2021, LSEG data shows. "The simplest way for investors to regain trust is to change the CEO," Sydbank analyst Jacob Pedersen said, while adding that Errboe was the right person for the job. "What is needed is some continuity in order to keep an eye on the ball, and to solve the problems that exist in various parts of the company," Pedersen said. Orsted's shares were down 0.2% at 1010 GMT, slightly underperforming Europe's blue-chip stock index. Errboe, the deputy CEO and chief commercial officer, will take the helm from Feb. 1, Orsted said. He has previously been interim finance chief and head of the company's Europe region. He was appointed deputy CEO last March as part of Orsted's new business plan, which included trimming investment and capacity targets. Nipper, who was CEO at Danish industrials group Grundfos for six years before joining Orsted, thanked his team on Friday and praised Errboe. "My passion for a world that runs entirely on green energy continues to be deeply profound," Nipper wrote on LinkedIn.
