Orsted Is Symptomatic of What’s Ailing Wind Power
The Danish company’s woes encapsulate the industry’s issues.
The future for offshore wind power isn’t so bright, as exemplified by the financial woes of Denmark’s Orsted.
Photographer: Thomas Traasdahl/AFP/Getty Images
Denmark’s Orsted A/S is once again the poster child for the woes afflicting the wind power sector. Once an industry darling valued more highly than oil giant BP Plc, its stock price has steadily dropped over the past few years as the company abandoned projects, cut jobs and lowered its financial targets.
Now, investors are once again disappointed in Orsted, sending its stock plummeting to below its initial public offering price. On Monday, the Danish energy giant announced plans to raise as much as 60 billion Danish kroner ($9.4 billion) via a rights issue — more than half of its market capitalization.