Orsted continues to sink. The Danish renewable energy giant has delivered yet another blow to its shareholders. News of a major fundraising exercise had been circulating since the end of last week, following a leak to Bloomberg. Perhaps the rumor forced the company to bring forward the publication of its results, which were due later this week?
In any case, the planned capital increase is even larger than expected (60 billion Danish kronor, or €8bn) and is accompanied by other significant announcements. In this flood of news, the worse interim results are almost the most reassuring element, which is saying something!
The company has also launched a process to sell its European onshore activities, which could bring in some DKK 35bn ($6.7bn), while reducing its forecasts due to the vagaries of the wind.
"This new financial roadmap is surprising given the scale of the planned capital increase, which is likely to shock investors. While it will certainly reduce the risk weighing on the balance sheet, the risk of dilution in the short term appears considerable given the amount involved and the apparent lack of new growth drivers," warns Ahmed Farman of Jefferies.
"More beneficial for bondholders than for shareholders"
The negative reaction of the stock speaks volumes about the impasse the company is in, which we have regularly reported on. "I think the structure of the rights issue should help limit shareholder dilution; however, it also highlights the structural weakness of Orsted's balance sheet and will probably prove more beneficial for bondholders than for shareholders, without generating any additional accretive effects," summarizes analyst Pierre-Alexandre Ramondenc, who follows the case at AlphaValue.
The morning's price swing wiped out the stock's gains in 2025, after four years in the wilderness.
