Nearly a third of Ørsted’s market value was wiped out in a single day as investor fears over Trump administration policies materialized into a full-blown crisis. The Danish wind giant’s stock hit an all-time low after it announced it would need to tap shareholders for $9 billion in an emergency fundraising.
The company’s crisis stems from the collapse of its financing strategy in the United States. Ørsted told investors it could no longer raise money by selling a stake in its new US projects, a direct result of President Trump’s hardline stance against wind power, which has crushed their market value.
The White House’s review of wind permitting has created a chilling effect, which is compounded by ongoing supply chain issues and higher interest rates. The fear in the market was intensified after Trump’s administration issued a stop-work order on an Equinor project, demonstrating a willingness to interfere even with fully approved developments.
Ørsted’s CEO, Rasmus Errboe, described the “extraordinary situation” facing the industry. With the support of the Danish government, the $9 billion rights issue is a desperate move to restore “financial robustness” and secure the company’s ability to deliver on its global energy targets.