Orsted shares fall 17% after US project fails, Trump's anti wind power policy hits

Orsted, the largest offshore wind developer in the world, saw its shares plummet 17% on February 2nd after it warned late on Monday about higher costs and delays for a critical U.S. offshore development.

On his first day as president, Donald Trump announced that the U.S. government would no longer support wind power because windmills were ugly, expensive, and harmful to wildlife.

Orsted announced late Monday that it had taken an impairment charge in the amount of $1.69 billion Danish crowns (12.1 billion Danish crowns) for the fourth quarter. The company cited a delay and increased costs associated with its Sunrise Wind Project, which will be the largest U.S. off-shore wind project when completed.

Mads Nipper, CEO of the company, told investors that Tuesday's results were "very disappointing".

The Danish company has also reported higher U.S. finance costs and impairments in seabed leases.

Donald Trump, the U.S. president, suspended Monday new federal offshore leasing in anticipation of an economic and environmental review.

Orsted's profit warning came before Trump's recent remarks on offshore wind. The Danish group refused to comment on any potential impact of the presidential order.

Barclays analysts stated in a research report that they see increased risks for the US Offshore Wind Industry given President Trump's anti-industry policies, including the possibility of no more U.S. Offshore Wind Development over the medium term. (Reporting and editing by Terje Solsvik, Stine Jacobsen)

(source: Reuters)