By Dominic Chopping


Orsted has launched a comprehensive new plan with cost cuts, a pause in dividends, asset sales and new business priorities following a year beset by troubles in the U.S. offshore wind market.

Faced with spiraling costs and supplier delays, the Danish renewable-energy company booked a 26.8 billion Danish kroner ($3.86 billion) impairment charge and a DKK9.6 billion provision in 2023 as it walked away from two major wind farm projects off the coast of New Jersey.

As it continues to shuffle its portfolio, Orsted last month cancelled a deal to supply power from another U.S. offshore project due to unfavourable terms and said it will purchase 50% of another project to become sole owner, subject to securing higher tariffs.

Orsted said Wednesday it will now implement measures to ensure a robust balance sheet, supporting long-term growth and capital structure resilience towards 2030.

To reduce development costs and create further strategic market focus, it is exiting several offshore markets, including Norway, Spain, and Portugal, deprioritising development activities in Japan, and planning for a leaner development within floating offshore wind and power-to-X projects.

It will also pause dividends for the financial years 2023, 2024, and 2025 and aims to reinstate dividends from the financial year 2026.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-07-24 0308ET