Posted by Richard Willett - Memes and headline comments by David Icke Posted on 8 April 2024

Over the last year, Ørsted’s shares have plummeted by 34%; is the offshore wind bubble bursting?

On Friday, Ørsted’s shares were valued at 34% lower than a year ago.  This is a trend that began eight months ago when in August its share price rapidly dropped by nearly 25%.

Ørsted A/S, together with its subsidiaries, develops, constructs, owns and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants.  It is the world’s largest offshore wind company. The Danish government is the majority shareholder, holding 50.15% of Ørsted shares.

In August 2023, it was reported that Ørsted’s share price tumbled by nearly 25% after it said it may have to write down the value of its US portfolio by nearly £2bn triggering a rapid sell-off in its shares listed in Copenhagen.  In their haste to dump the stock, investors had cut the notional value of the business by nearly £7bn by the time the market closed on 30 August 2023.

The Danish firm’s woes included soaring costs in its supply chain, echoing problems cited by Swedish rival Vattenfall, which suspended a giant British offshore wind farm project off the coast of Norfolk in July 2023.  Ørsted’s planned US windfarms were significantly smaller but its admission of concerns about its ambitions in North America were the cause of the sell-off at the end of August.

In November 2023, the company lost two of its most senior executives. Ørsted told investors that its chief financial officer, Daniel Lerup, and chief operating officer, Richard Hunter, had agreed to step down from their roles with immediate effect because the company needed “new and different capabilities” to “strengthen Ørsted’s journey into the future.”

Mads Nipper, the Ørsted chief executive, has remained in his role. “Ørsted, along with the rest of the industry, is experiencing a challenging and volatile business environment,” he said.

In February 2024, Ørsted completed its executive team “overhaul” by appointing a new chief financial officer and a new chief operating officer.

Last month, the embattled Ørsted signed an agreement with investment firm Stonepeak relating to four US onshore wind farms.  Through the agreement, Stonepeak will own the equity and receive 80% of the cash distributions associated with the projects, while Ørsted will continue to operate the portfolio of assets.

In the same week, a £58bn plan to rewire Great Britain’s electricity grid to connect up new windfarms off the coast of the northeast of Scotland to the northwest of England was announced. National Grid’s electricity system operator (“ESO”) has mapped out power “motorways” across Great Britain to allow for the biggest investment since the 1960s. The plan shows a “high-capacity electrical spine” running onshore from the north-east of Scotland through to the north-west of England, alongside a complex collection of cables stretching along coastlines.

Read More: Over the last year, Ørsted’s shares have plummeted by 34%; is the offshore wind bubble bursting?

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