Aannounced on Wednesday Report Orsted a significant reduction in its investment plan for the years through 2030, wounding it by approximately 25 percent. Orsted aims to support its capital structure and focus on high-value growth opportunities through a self-funded investment program. This decision comes as the company addresses challenges in its US offshore wind portfolio and broader issues within the renewables industry. Regardless of reporting full-year 2024 results in line with expectations.

Essential Features:

Revised Investment Plan: Orsted now plans to invest DKK 210-230 billion (USD 29.25bn/EUR 28.15bn) between 2024 and 2030, down from the previous target of DKK 270 billion.

ROCE Target: The company expects an average return on capital employed (ROCE) of around 13%.

Capacity and EBITDA Goals: Orsted has canceled its 2030 target of 35-38 GW of installed renewable capacity and withdrawn its 2030 EBITDA goal of DKK 39-43 billion.

Ongoing Projects: The revisions will not affect the 9 GW of projects currently under construction, and the company remains committed to delivering its 8.4 GW offshore wind construction program over the next three years.

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CEO Statement:

“We’ll reduce our investment program towards 2030 through a stricter, more value-focused approach to capital allocation. We do this to ensure a stronger balance sheet, supporting a solid investment grade rating, and to ensure that we only invest our capital in the most financially attractive opportunities.” said CEO Rasmus Errboe.