Orsted's Wind Farm Ambitions Derailed by U.S. Construction Halt

Danish wind farm developer Orsted faces challenges as the U.S. halts construction on a key project, jeopardizing its capital-raising plans. The stoppage, issued by the Bureau of Ocean Energy Management, occurs as Orsted seeks to raise $9.42 billion. Analysts express concerns over the impact on share prices and the future of the project.

Danish wind farm developer Orsted's aspirations hit a snag after the U.S. ordered a halt on a nearly completed project, casting doubt over its capital-raising endeavors. Analysts foresee potential pressure on Orsted's share price on Monday following the ruling.

The Bureau of Ocean Energy Management's stop-work order was announced late Friday, mandating a suspension of the Revolution Wind project off Rhode Island. This activity pause, enacted as the project neared completion, challenges Orsted's plan to secure 60 billion Danish crowns through a rights issue.

Analysts, including Jacob Pedersen from Sydbank and Pierre-Alexandre Ramondenc from AlphaValue, highlighted concerns about the effort's timing and potential negative effects. The company, majority-owned by the Danish state, hasn't indicated when it will update stakeholders on the order's implications.

(With inputs from agencies.)