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Ørsted reduces investment and gives up its goals to develop new renewable energy as part of the second drastic attempt to renew the price of shares and increase confidence in its strategy.
The world’s largest coast wind The developer said he would reduce the planned investment at 2030. By 25 percent, less than a week after replacing the predecessor of Mads Nipper with new executive director Rasmus Errboe.
The state-owned company has announced a priority to the construction of existing projects on Wednesday as it is trying to recover from a problematic step in the US.
He also faces a difficult wind surroundings at sea with the choice of Donald Trump, while trying to maintain an investment degree rating and avoiding new funds to increase the balance sheet.
This move emphasizes the challenges that are facing global attempts to deviate from fossil fuels, and some other developers also increase their renewable sources ambitions due to the return to labeling or practical challenges.
The announcement followed a few hours after Equinor, a Norwegian energy group owned and a major Ørsted The shareholder, he said he also reduced the goals of renewable sources and instead planned to pump more oil to increase the return and cash flow of shareholders.
Nipper has been chaired by almost 80 percent of Ørsted shares in the last four years because interest rates have grown and covered with green supplies faded.
In February last year, he tried to arrest Tobogan by announcing up to 800 job reductions, reducing the objectives for renewable sources, suspending the company dividend and drawing with three winds at sea.
However, the group’s shares again fell after announced in January further listened to connected with their business jobs at sea, which was covered by high costs and stresses in the supply chain.
In a statement on the eve of its annual results on Thursday, Errboe said that “priority number one” was in the next three years to complete the construction of 8.4 Gigavate wind at sea in the construction of the world – a huge portfolio that can powers millions of homes.
He added that the company “still believes in long -term grounds for wind and renewable sources in the sea” and emphasized the predictions that global demand for electricity will double by 2050.
According to its new plans, Ørsted abolished its aim of the development of 35-38GW of renewable sources by 2030, and reduces investment plans for 2024-2030. 25 percent, on DKR210BN-DKR230BN ($ 29.3 billion-32.10 billion.
The completion of its wind projects and other technologies under construction would take its overall installed capacity of about 18 GW today at more than 27 GW in 2027.
In the potential sign of further reduction in jobs, the company said it would also be “the correct dimension of our cost of costs and organization continuously”.
The company insisted that the business plan would not require raising a new capital. The goal is still to return dividends in 2026.
Errboe added: “The market remains challenging, but the delivery of this program will strengthen our position as an undisputed global leader on the offshore wind.”
RBC analysts said: “This is a positive step, given the challenges of business financing and lack of loans for growth by the market.”
