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Ørsted lowered the investment and lowers its goals for the development of new renewable energies as part of a second drastic attempt to restore the fighting share price and to strengthen trust in its strategy.
The biggest offshore in the world wind The developer said that he would reduce planned investments to 25 percent in 2030, less than a week after the predecessor Mads Nipper was replaced by the new managing director Rasmus Errboe.
The state -supported company announced the plans on Wednesday to prioritize the construction of existing projects because it is trying to recover from a restless foray in the USA.
The choice of Donald Trump is also exposed to a difficult environment for offshore winds, while it is trying to maintain rating for the investment quality and avoid new fundraisers in order to support its balance sheet.
The step underlines the challenges that global attempts to move away from fossil fuels, whereby some other developers also school down their ambitions for renewable energies due to returns or practical challenges.
The announcement was made to Equinor, the Norway State Energy Group and a Major Ørsted The shareholder said that it also reduced the goals for renewable energies and instead planned to pump more oil to strengthen the returns and the cash flow of shareholders.
Nipper has led a slump of almost 80 percent in the Ørsted share price in the past four years when interest rates rose and the hype faded over green shares.
In February of last year, he tried to arrest the film by announcing up to 800 sections of the job, reducing targets for renewable energies, putting the company’s dividend and taking out the three offshore wind markets.
However, the group’s shares put together again after it was announced in January, which were connected to the US offshore wind business, which was overthrown in the supply chain due to high costs and tribes.
In an explanation of the annual results on Thursday, Erboe said that the company’s “number one” would be in it for the next three years.
He added that the company “continues to believe in the long-term foundations for offshore wind and renewable energies” and emphasized predictions that global demand for electricity would double by 2050.
According to his new plans, Ørsted scraps his goal of developing 35-38 GW renewable energies by 2030, and reduces the investment plans for 2024-2030 by 25 percent to DKR210BN-DKR230 billion (29.3 billion USD 32.10 billion. USD).
The termination of its offshore wind projects and other technology in construction would require its entire installed capacity from today to 2027 from around 18 GW to over 27 GW.
In a potential signs of other work cuts, the company said that it would also be “the right size of our cost basis and organization continuously”.
The company insisted that the business plan would not increase new equity. It is still aimed at restoring the dividends in 2026.
Errboe added: “The market remains a challenge, but the provision of this program will consolidate our position as an undisputed worldwide leading market leader in the offshore wind.”
Analysts from RBC said: “In view of the financing challenges for business and the lack of loan in the market, it is a positive step.”
