Ørsted completes rights issue, divests stake in Hornsea 3 wind farm

Danish renewable energy firm Ørsted A/S has strengthened its capital structure by completing a DKK 60 billion ($8.9 billion) rights issue and divesting a 50% stake in its Hornsea 3 Offshore Wind Farm, while reaffirming full-year EBITDA guidance of DKK 24-27 billion. Although nine-month 2025 EBITDA declined to DKK 18.6 billion due to non-recurring cancellation fees, offshore earnings and renewable generation increased, and profit rose to DKK 6.5 billion. The company also announced a strategic workforce reduction of approximately 2,000 positions by 2027 to boost competitiveness and is advancing its 8.1 GW offshore wind construction portfolio, expected to generate DKK 11-12 billion in annual EBITDA upon completion.

Analysis

Ørsted A/S has significantly strengthened its capital structure by completing a DKK 60 billion ($8.9 billion) rights issue and divesting a 50% stake in its 2.9 GW Hornsea 3 Offshore Wind Farm. The company has reaffirmed its full-year EBITDA guidance of DKK 24-27 billion, excluding new partnerships and cancellation fees, and maintained its gross investments guidance of DKK 50-54 billion, indicating stability in its financial outlook. These actions position the company for continued investment in its strategic growth areas.

For the first nine months of 2025, Ørsted reported an EBITDA of DKK 18.6 billion, a decrease from DKK 23.6 billion in the prior year, primarily due to the non-recurrence of 2024 cancellation fees. However, underlying operational performance showed strength, with offshore site earnings increasing 5% to DKK 16.1 billion, driven by higher availability rates, and renewable energy generation growing 8%. Net profit for the period slightly improved to DKK 6.5 billion from DKK 6.1 billion, with an adjusted Return on Capital Employed (ROCE) reaching 10.2%.

The company is undertaking a strategic organizational adjustment, planning to reduce its workforce by approximately 2,000 positions by the end of 2027, aimed at enhancing competitiveness and aligning with its European offshore wind focus. Significant progress is noted on its 8.1 GW offshore wind construction portfolio, including the completion of US Northeast program substations, with these projects expected to contribute an annual EBITDA run rate of DKK 11-12 billion upon full commissioning.

Key Decisions for Investors

• Investors should assess the long-term impact of Ørsted's strengthened capital structure and strategic focus on European offshore wind, considering the substantial DKK 11-12 billion annual EBITDA potential from its 8.1 GW construction portfolio.
• Monitor the execution of the announced workforce reduction and its effectiveness in improving competitiveness, alongside the company's ability to consistently meet its reaffirmed full-year EBITDA guidance.
• Evaluate the quality of earnings by distinguishing between the reported EBITDA decline due to non-recurring items and the underlying growth in offshore earnings and renewable generation, which suggests operational resilience.