Equinor plans to participate in Ørsted’s upcoming rights issue, worth around EUR 8 billion, and maintain its 10 per cent ownership stake in the Danish offshore wind developer.
On 1 September, Equinor said that, subject to the final terms of the rights issue, it intends to subscribe for new shares at a consideration of up to DKK 6 billion, or around USD 939 million (around EUR 800 million).
Equinor, which acquired a 10 per cent stake in Ørsted in December 2024 , will also nominate a candidate to Ørsted’s board of directors ahead of the next annual general meeting.
“Following dialogue with Ørsted, Equinor has decided to support the proposal to strengthen Ørsted’s balance sheet in response to the current industry challenges” , the company said in a press release on 1 September.
“Equinor’s support of the Rights Issue reflects confidence in Ørsted’s underlying business, and the competitiveness of offshore wind in the future energy mix, in selected geographies.”
Ørsted announced plans for the rights issue with pre-emptive rights for existing shareholders on 11 August, and said its majority shareholder, the Danish state, had committed to subscribing to its share of the company (50.1 per cent).
On 25 August, the company said it had appointed a syndicate of banks which would jointly underwrite the rights issue for the approximately 49.9 per cent that would not be subscribed to by the Danish state.
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Ørsted Moving Ahead with EUR 8 Billion Rights Issue to Build Sunrise Wind, Shore Up Finances Amid US Market Uncertainty
Ørsted Plans Rights Issue to Fund Building US Offshore Wind Farm Alone, Danish State Commits as Majority Subscriber Business & Finance Ørsted will use the proceeds from the planned DKK 60 billion (around EUR 8 billion; USD 9.4 billion) rights issue to fund the construction of the Sunrise Wind offshore wind farm in the US and strengthen its capital structure.
Building Sunrise Wind to completion entirely on its balance sheet requires approximately DKK 40 billion (around EUR 5.4 billion), while the remainder will provide financial flexibility for Ørsted to execute its business plan, including projects in the uncertain US offshore wind market, the company said on 25 August, shortly after the US Department of the Interior issued a stop-work order for its nearly finished Revolution Wind offshore wind farm.
“The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US. The planned rights issue has been sized to provide the required strengthening of Ørsted’s capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Ørsted’s US offshore wind portfolio”, Ørsted said on 25 August.
Equinor faced a similar challenge earlier this year, when its Empire Wind 1 project was halted by the US federal government for further review, just as offshore work was ramping up.
The order for Empire Wind 1 was rescinded around a month after it was issued , following discussions between the New York Governor and the White House.
“In response to the challenges facing offshore wind, the industry will see consolidation and new business models. Equinor believes that a closer industrial and strategic collaboration between Ørsted and Equinor can create value for all shareholders in both companies” , Equinor said on 1 September.
“Equinor is following recent developments around the offshore wind industry in the US closely and will remain in dialogue with Ørsted as the situation evolves.”