The Danish renewable energy giant, Orsted, has revealed a substantial net loss for the second quarter, driven by project delays and cancellations.
The company’s net loss nearly tripled compared to the previous year, leading to a sharp decline in its stock market value.
Between April and June, Orsted reported a net loss of 1.678 billion Danish crowns (equivalent to 225 million euros). Despite this, the company’s revenue saw a modest increase of 3%, reaching 15 billion crowns.
At 09:15 GMT, Orsted’s stock had fallen by 7%, trading at 392.8 crowns.
Impairments and Project Cancellations
The company recorded impairments amounting to 3.9 billion crowns during the quarter. One of the key decisions was to shut down the FlagshipOne green fuel project for container ships, citing high costs.
Additionally, Orsted is experiencing delays with an offshore wind project in the United States, now expected to commence operations in 2026 instead of 2025.
Investor Concerns and Strategic Adjustments
These developments have raised concerns among investors, especially since Orsted had already canceled a massive offshore wind farm project in the United States in 2023 and announced plans to reduce its investments.
In February, as part of efforts to strengthen its financial position, Orsted decided to suspend dividend payments for the fiscal years 2023 through 2025.