(BFM Stock Exchange) – The company specializing in the production of solar and wind energy has announced a gigantic capital increase, of 8 billion euros. This call to the market must allow the group to have sufficiently solid kidneys while the company must deploy for 8.1 gigawatts of offshore wind projects by 2027.
For several years, renewable energy groups have had to sail in troubled waters. The increase in raw materials, such as that of polysilicon prices, the additional costs on offshore wind projects (wide sea) or the rise in interest rates are all elements that have weighed on their stock market prices.
The return to the White House in January of Donald Trump, known for his hostility to all forms of renewable energies (he still castigated wind turbines during his recent visit to Scotland in late July, saying that they had to be prohibited) did not help.
The American president notably signed on January 20, a decree suspending federal loans to new offshore wind projects awaiting an economic and environmental examination.
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Regulatory uncertainty
Orsted, a Danish group formerly specialized in fossil fuels and now focused on wind and solar, found itself caught in the storm.
“The uncertainty (resulting from the decree signed by Trump in January, editor’s note) has weighed on Orsted’s actions since the start of the year, due to concerns about its two American projects under construction: Revolution Wind (704 megawatts with a starting start for the second half of 2026) and Sunrise Wind (924 megawatts and a programmed start 2027) “, noted AlphaValue in May.
In this difficult context, Orsted decided to drink a very bitter potion (at least from the point of view of its shareholders) to strengthen its assessment.
On the occasion of the publication of its first semester results, the Scandinavian group announced a capital increase project of 60 billion Danish crowns, or around 8 billion euros.
On the Copenhagen Stock Exchange, the Orsted action collapsed by 28.9% around 2:20 p.m.
A project that consumes the raised cash
The group explains in particular to have resolved this recourse because of its difficulties in giving up part of the Sunrise Wind project, which adds funding needs of 40 billion crowns, notes Royal Bank of Canada. Orsted links these concerns to “the recent unfavorable development of the American offshore wind market”.
“The balance sheet has been at the center of Orsted concerns for some time, the recent titles reporting the difficulties encountered in selling assets on the current market,” said Royal Bank of Canada.
Hence this heavy capital increase in which the Danish state will participate, which has 50.1% of the capital of Orsted.
The product’s product “will be used to strengthen Orsted’s financial structure and offer it financial flexibility in order to ensure adequate capitalization between 2025 and 2027, during which Orsted will carry out its 8.1 gigawatts offshore wind turbine construction portfolio (the equivalent of five times the Flamanville EPR),” said the company.
The bulk of the raised capital will be used, therefore, especially to cover the additional financing needs for the entire Sunrise Wind project “a project which is already subject to a strong pressure on yields”, underlines Royal Bank of Canada.
“We believe that this announcement will be welcomed negatively by the market,” concluded the bank in a note written on Monday morning.
The dilution will indeed be important for shareholders since the 60 billion Danish crowns that ORSTED intends to raise more or less for half of its current market capitalization (130 billion crowns).
Last May, Orsted announced the withdrawal of an offshore wind project, Hornsea 4, located wide in Scottish ratings. The group then mentioned increased cost increases and risks of exploitation. This had led him to record estimated customs customs between 470 million and 600 million euros.
Julien Marion – © 2025 BFM Bourse
