Citing unfavorable U.S. energy policies and import tariffs as main causes, Danish offshore wind behemoth Ørsted has noted a severe financial setback in the third quarter. Having made significant investments in offshore wind projects in American waters, the company reported a net loss of 1.7 billion Danish kroner (about €228 million), a striking contrast to the 5.1 billion kroner gain registered in the corresponding period last year.
The depression arises as newly elected U.S. President Donald Trump reverses federal energy policy toward fossil fuels, therefore generating obstacles for renewable energy projects. Regulatory ambiguity and increasing expenses brought on by import taxes have especially hit Ørsted, the biggest creator of offshore wind parks worldwide.
From its peak in 2021, the company’s stock has dropped almost 85%, and last month Ørsted said that it would reduce 25% of its staff in reaction to growing financial stress.
CEO Rasmus Errboe stays positive despite difficulties. Particularly in nations like the Netherlands, he sees great opportunity in the European offshore wind market and is still trying to negotiate with American stakeholders about current initiatives.
Ørsted announced on Monday that it is selling its 50% interest in a British offshore wind facility to U.S. investment company Apollo for €5.2 billion in a strategic move to improve its financial condition.
