COPENHAGEN (Reuters) – Orsted, the world’s biggest offshore wind power developer, said on Thursday it expected core profit this year to be equal to, or above 2024, a day after cutting investment plans for coming years, sending its shares higher.
After the market close on Wednesday, the Danish company said it had decided to scale back the total amount it planned to invest for the years through 2030 by about 25% to shore up its finances in a challenging market.
It also said it saw no need to raise new cash, and that the revised plan would allow the group to keep cutting costs given it would construct at a slower pace than previously planned.
Shares in Orsted were up 6% in early trade, trimming a year-to-date fall to 8%. Sydbank analyst Jacob Pedersen said many investors had feared the company would announce a capital increase.
Offshore wind companies have faced challenges including rising costs, supply chain issues and planning delays. President Donald Trump created further uncertainty by suspending offshore wind leases on his first day in office last month.
Orsted said on Thursday most of its projects were progressing according to plan, but warned it continued to face supply chain and construction challenges at its two U.S. offshore construction projects Revolution Wind and Sunrise Wind.
Orsted said it had successfully renegotiated and settled contracts related to the closure of its Ocean Wind projects in New Jersey with a better-than-expected outcome, resulting in a net reversal of cancellation fees of 7.3 billion crowns.
The company guided for 2025 operating profit before interest, tax, depreciation, amortisation, new partnerships and cancellation fees of between 25 billion and 28 billion crowns ($3.5 billion-$3.9 billion).
The outlook matched analysts’ average expectations, according to a company-provided poll.
In its full-year earnings report on Thursday, Orsted confirmed a preliminary reading for 2024 of 24.8 billion crowns.
“The year 2024 proved to be a challenging year for the industry and for Orsted,” Rasmus Errboe, new CEO since Feb. 1, said in the statement. “We’ve experienced headwinds and have therefore taken necessary actions.”
($1 = 7.1798 Danish crowns)
(Reporting by Louise Breusch Rasmussen, editing by Anna Ringstrom and Sharon Singleton)
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