
Orsted reports $1.76 billion loss due to delays in US offshore projects
The Danish renewable energy company Ørsted has reported losses of USD $1.7 billion (equivalent to 12.1 billion Danish kroner) in the fourth quarter of 2024 due to a series of issues related to its operations in the United States, according to a preliminary report.
Delays and cost overruns at sunrise wind
The charges include a significant impact of DKK 4.3 billion (USD $600 million) associated with the 924 MW Sunrise Wind project, which is facing delays and increased execution costs. Sunrise Wind, located in New York, has encountered challenges related to the supply chain and the installation of its high-voltage direct current (HVDC) transmission system. The project’s completion has been postponed to the second half of 2027, with a considerable increase in costs for monopile foundations and other components.
Besides the problems at Sunrise Wind, Ørsted recorded a $490 million charge due to a decline in the value of seabed leases in New Jersey, Maryland, and Delaware, reflecting current market uncertainties. Furthermore, a 75-basis-point increase in the weighted average cost of capital in the US has negatively impacted the value of the company’s offshore projects.
Source: Google Finance
Commitment to renewable energy amid policy uncertainty
Despite these difficulties, Ørsted reported that its adjusted operating profit (EBITDA) for 2024 reached USD$3.472 billion, meeting expectations and reflecting the solid performance of its global operations.
Mads Nipper, Ørsted’s CEO, expressed disappointment over the losses but reaffirmed the company’s commitment to the US market. "Although the construction challenges are disheartening, we remain committed to the long-term potential of renewable energy in the United States. We are working closely with our suppliers to manage the remaining risks and meet the updated schedule for the Sunrise Wind project," he stated.
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