Orsted's share price has plummeted to its lowest level in over four years, and is down nearly 70% from its 2021 peak. "The situation for offshore wind in the US is serious," said CEO Mads Nipper on a conference call.

Triple punishment

The company's Ocean Wind 1, Sunrise Wind and Revolution Wind projects are affected by several supplier delays, which could result in write-downs of up to 5 billion kroner, the company said in a statement.Orsted said that the company's discussions with "leading federal stakeholders" on obtaining additional US tax credits for its wind power projects had been delayed.for its offshore wind projects had not progressed as expected, which could lead to additional write-downs of 6 billion kroner.In addition, rising long-term interest rates in the US have affected both offshore wind projects and some onshore wind projects, and will lead to write-downs of around 5 billion kronor, Orsted said.

Chute

"Today's announcement signals risks in the US portfolio and does nothing to improve negative investor sentiment on the stock," Bernstein analysts said in a note to clients.Orsted bought its remaining stake in Ocean Wind 1, the 1.1 gigawatt wind power project off the coast of New Jersey, from Public Service Enterprise Group earlier this year. The company said on Wednesday that it did not expect the anticipated impact to alter its previously announced EBITDA guidance for the year.

The US government has set a national goal of developing 30 gigawatts of offshore wind energy by 2030.