Ørsted shares slump to record low after U.S. halt on near-finished wind project Ørsted fell to a new record low on Monday after the U.S. Bureau of Ocean Energy Management ordered work to stop on Revolution Wind, a $1.5bn offshore project that is roughly 80% complete. The decision jolted investors and sent the Danish developer’s stock down as much as 18% intraday; by afternoon trade shares were 17% lower at DKr178, valuing the company at about DKr75bn. An analyst at Sydbank called the development “devastating,” adding that uncertainty could complicate Ørsted’s planned DKr60bn rights issue. Despite the market reaction, Ørsted said it is still preparing the capital raise and retains the backing of its majority shareholder, the Danish government. The stop-work order cited the need to address “national security interests,” without elaborating. Ørsted estimates its remaining share of investment on Revolution Wind at DKr5bn and had expected about DKr1bn in annual EBITDA from the project, which is owned 50/50 with a BlackRock affiliate and designed to power roughly 350,000 homes in Rhode Island and Connecticut under 20-year contracts. The developer’s stock has now dropped nearly 90% from its 2021 peak amid rising interest rates and political headwinds for U.S. offshore wind. Some analysts argue Ørsted may ultimately need to reassess its U.S. portfolio to stabilise the balance sheet. Investors have been even more focused on Sunrise Wind, a U.S. project Ørsted fully owns. The planned rights issue is largely intended to fund about DKr40bn of remaining spend there. Ørsted says total investment for Revolution and Sunrise is about DKr100bn, while the combined carrying value as of end-June was DKr17bn. Earlier this year, another U.S. offshore project led by Equinor also faced a federal halt before later resuming, with analysts estimating an $800mn impact. Separately, Denmark’s finance minister, Nicolai Wammen, reaffirmed state support for Ørsted’s equity raise, noting the Revolution Wind setback falls within the risk profile considered when backing the plan. Analysts at Citi warned a prolonged delay could force Ørsted to postpone or resize the rights issue, depending on added costs and available headroom. Equinor, which disclosed a 10% stake last October, is now the company’s second-largest shareholder; Ørsted’s shares have more than halved since that investment was announced.

Ørsted fell to a new record low on Monday after the U.S. Bureau of Ocean Energy Management ordered work to stop on Revolution Wind, a $1.5bn offshore project that is roughly 80% complete. The decision jolted investors and sent the Danish developer’s stock down as much as 18% intraday; by afternoon trade shares were 17% lower at DKr178, valuing the company at about DKr75bn.

An analyst at Sydbank called the development “devastating,” adding that uncertainty could complicate Ørsted’s planned DKr60bn rights issue. Despite the market reaction, Ørsted said it is still preparing the capital raise and retains the backing of its majority shareholder, the Danish government.

The stop-work order cited the need to address “national security interests,” without elaborating. Ørsted estimates its remaining share of investment on Revolution Wind at DKr5bn and had expected about DKr1bn in annual EBITDA from the project, which is owned 50/50 with a BlackRock affiliate and designed to power roughly 350,000 homes in Rhode Island and Connecticut under 20-year contracts.

The developer’s stock has now dropped nearly 90% from its 2021 peak amid rising interest rates and political headwinds for U.S. offshore wind. Some analysts argue Ørsted may ultimately need to reassess its U.S. portfolio to stabilise the balance sheet.

Investors have been even more focused on Sunrise Wind, a U.S. project Ørsted fully owns. The planned rights issue is largely intended to fund about DKr40bn of remaining spend there. Ørsted says total investment for Revolution and Sunrise is about DKr100bn, while the combined carrying value as of end-June was DKr17bn.

Earlier this year, another U.S. offshore project led by Equinor also faced a federal halt before later resuming, with analysts estimating an $800mn impact. Separately, Denmark’s finance minister, Nicolai Wammen, reaffirmed state support for Ørsted’s equity raise, noting the Revolution Wind setback falls within the risk profile considered when backing the plan.

Analysts at Citi warned a prolonged delay could force Ørsted to postpone or resize the rights issue, depending on added costs and available headroom. Equinor, which disclosed a 10% stake last October, is now the company’s second-largest shareholder; Ørsted’s shares have more than halved since that investment was announced.