Orsted Faces Turbulence as US Halts Wind Project

Orsted's wind farm development faces difficulties as the US halts construction of a project, affecting the Danish company's capital-raising plans. Despite the setback, Orsted, with Danish state support, continues with a rights issue. Analysts express concern over the project's suspension impact on Orsted's share price.

Orsted, the Danish wind farm developer, is facing significant challenges as a US order halts construction on a nearly-complete project, potentially impacting the company's capital-raising efforts. Analysts suggest this could put pressure on Orsted's share price as early as Monday.

Despite the US order, Orsted announced it would continue with its planned rights issue, a move supported by the Danish state owning 50.1% of the company. The company's statement highlighted that the rights issue was designed to bolster Orsted's financial structure despite uncertainties surrounding its US offshore wind assets.

The US Bureau of Ocean Energy Management's stop-work order, issued late Friday, halted a project that was 80% finished near Rhode Island, affecting Orsted's plan to raise 60 billion Danish crowns. Analysts view the move as politically charged, with significant implications for Orsted's future projects and stock value.

(With inputs from agencies.)