Ørsted, a global renewables major, implements significant changes including suspending dividends, cutting jobs, and exiting markets in response to challenges.
In recent news from DK, Ørsted, a prominent player in the offshore wind industry, has made strategic decisions to streamline its operations. The company, in collaboration with Eversource, provided seed funding for the Connecticut Wind Collaborative to support the supply chain and workforce. However, despite positive ventures, Ørsted found it necessary to suspend dividends, implement job cuts, and withdraw from certain offshore wind markets to enhance efficiency and sustainability. These actions were taken after Ørsted reported a hefty loss in 2023 but also marked a significant increase in EBITDA from its offshore wind sites.
The Danish developer's 2023 operating performance showcased a noteworthy doubling of EBITDA, amounting to DKK 18.7 billion. Ørsted's revised business plan, announced during a Capital Markets Update, included Thomas Thune Andersen stepping down as Chair and a comprehensive review of the company's portfolio. The company's shift in focus towards leaner operations was evident as it recalibrated investment and capacity targets, signaling a potential reduction in renewables build targets and job roles.
In addition to the operational changes, Ørsted has initiated a cost-saving plan following setbacks in its US wind projects. The company faced challenges such as supplier delays and increasing costs, leading to significant impairment charges. This financial restructuring aims to mitigate losses and enhance the company's financial stability amidst industry challenges.
With regards to the key individuals and organizations mentioned in the text, Ørsted's Chairman Thomas Thune Andersen's decision to step down signals a pivotal moment in the company's leadership. Additionally, the partnership between Ørsted and Eversource in funding the Wind Collaborative underlines their commitment to supporting the renewable energy sector. These actions by industry leaders like Ørsted demonstrate the adaptability and resilience required in the dynamic renewable energy landscape.
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Danish renewables giant Orsted on Wednesday announced plans to cut jobs and exit several offshore wind markets after a tumultuous year of rising costs.
Company is to leave certain markets, suspend dividend payments, cut jobs and has cut its 2030 offshore wind target.
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The company will exit offshore markets including Norway, Spain and Portugal, and deprioritise activities in Japan. February 8, 2024. Share this article.
In a company statement, Ørsted said its “US offshore projects caused significant impairments and additional costs for terminating contracts, leading to a ...