Orsted raises $9.4bn in crucial rights issue as analyst says risks remain

Orsted successfully raised DKr60bn ($9.4bn) in a rights offering crucial to the offshore wind giant’s future plans.

Investors subscribed to 99.3% of the shares on offer in the rights issue – staged to plug a hole blown in its finances by Donald Trump’s war on wind power in the US.

Those backing the measure included majority shareholder the Danish state and Equinor, the Norwegian oil and gas group that owns 10% of Orsted.

Orsted said demand for the remainder of the shares “has been extraordinarily high”.

CEO Rasmus Errboe said: “I’m very pleased with the strong support we’ve received for our rights issue from small and large investors from Denmark and abroad, including from our majority shareholder the Danish state.

“The rights issue strengthens Orsted’s financial foundation, allowing us to focus on delivering our six offshore wind farms under construction, continue to handle the regulatory uncertainty in the US and strengthen our position as a market leader in offshore wind.”

The successful rights issue did not persuade Sydbank chief stocks analyst Jacob Pedersen to upgrade his view of the company, however.

"We maintain our Hold recommendation on Orsted shares,” Pedersen said in a statement.

“The issue was guaranteed, so it is no surprise that Orsted will receive all DKr60bn ($9.4bn),” Pedersen said.

“Ahead, Orsted will have to deal with high political risk in the US, complex project completions and an adaptation of the organization to a completely different level of activity,” Pedersen noted.

Pedersen noted that the company is still vulnerable to actions by the president, including a future stop-work order on its 920MW Sunrise array that is readying to enter construction.

“The coming period will be characterised by the political winds in the US for Orsted shares, where the Trump administration is still trying to derail approved offshore wind projects on a weekly basis by revoking approvals,” Pedersen said.