Shares in Danish renewable energy firm Ørsted fell about 17% on Monday after the U.S. administration under Donald Trump ordered a stop to construction on the 704MW Revolution Wind offshore project off the U.S. East Coast.
As of 0830 local time, Ørsted’s stock was trading at DKK177.95 per share, extending a sharp decline that has seen the company’s value drop roughly 45% since the beginning of August.
The latest decline compounds investor concerns following Ørsted’s announcement earlier this month of a planned €8 billion rights issue to finance the 924MW Sunrise Wind project, also located off the U.S. coast. The capital raise became necessary after Ørsted was unable to proceed with selling a stake in the project or securing debt financing due to regulatory uncertainty.
Despite the setback, the company said it intends to move forward with the rights issue. “The rights issue will proceed following a board meeting scheduled for 5 September,” Ørsted said in a statement.
The halt on Revolution Wind and the broader financing challenges have raised questions over Ørsted’s U.S. strategy, which has been central to its offshore wind expansion.
