February 7, 2024 — Orsted the struggling European wind-energy giant, said it will cut costs, pause dividend payments over several years, sell assets and refocus business priorities as it tries to right itself from a costly move into the U.S. offshore wind market.
Orsted, which transformed itself in recent years from what was Denmark’s small state oil company into a global giant in wind energy development, has recently hit major headwinds as it pushed aggressively to expand into new markets, particularly in a push in the U.S.
After betting big on offshore wind development on the U.S. East Coast, it has pared back dramatically, and seen its stock-market valuation—at one point eclipsing that of some of its more traditional oil and natural gas peers—crater.
It has struggled with supply-chain bottlenecks in the U.S., higher interest rates and trouble getting tax credits there. Late last year, it said it would pull out of two high-profile wind projects off the coast of New Jersey due to spiraling costs.