Ørsted, the Denmark-based global leader in offshore wind power development, just made a big one. They are launching a record DKr60 billion ($9.3 billion) rights issue. This financial maneuver strengthens the company’s overall capital structure. It further gives the company more financial flexibility as it continues to adjust through a challenging U.S. market environment. The rights issue is a move that’s clearly a strategic decision meant to keep Ørsted properly capitalized through 2027.
The announcement follows a series of blows to the U.S. offshore wind market. This unique OpEx environment is forcing Ørsted to reconsider how they make financial bets. The company has anchored several uses for the funds it plans to raise from this rights issue including: They are as yet undeterred from their ambitious 8.1 gigawatt (GW) construction portfolio goal by 2027.
Extraordinary General Meeting Scheduled
In response, Ørsted announced it will hold an extraordinary general meeting on 9 September 2025. At this upcoming Ordinary General Meeting, shareholders will take a definitive vote to approve this rights issue initiative. The Danish state has publicly committed to subscribe for its pro rata share of 50.1% in the rights issue. This decision demonstrates their confidence in Ørsted’s long term prospects as a company.
At the time, Rasmus Errboe, Ørsted’s group president and CEO called this a transformational decision.
“To deliver on our business plan and commitments in this environment, we’ve concluded that a rights issue is the best solution for Ørsted and our shareholders. The rights issue will reinforce our ability to realise the full value potential of our existing portfolio and capture future value-creating opportunities in offshore wind.” – Rasmus Errboe
Ongoing Projects and Strategic Divestments
Ørsted is clearly moving ahead with positive farm-down processes on its Changhua 2 and Hornsea 3 offshore wind farms. They’re actually doing something about rights. The firm is reportedly looking at offloading its European onshore arm. Yet, this divestment alone could provide more than DKr35 billion in proceeds for 2025 and 2026 combined. Ørsted has just made a truly audacious move. They have chosen to not proceed with their announced partial divestment and non-recourse project financing for the Sunrise Wind offshore project.
Lene Skole, board member at Ørsted, explained the reasons for making these strategic moves.
“Given the unprecedented regulatory development in the US, we have made a comprehensive assessment of all options, and Ørsted’s board of directors has concluded that the planned rights issue is the best path forward for the company and its stakeholders.” – Lene Skole
Maintaining Competitive Edge
As far as Ørsted is concerned, the rights issue will be key. It will give them a long-term playbook for staying competitive in the growing offshore wind market. By raising new growth capital, the company intends to focus on profitable investments that will enhance its long-term strategy. Morgan Stanley has replaced JPMorgan as the underwriter for the rights issue. This action ensures complete subscription and increases investor trust in Ørsted’s effective transformation strategy.
