Orsted Faces Significant Stock Drop After Announcing Rights Issue

Denmark's leading energy company, Orsted, experienced a dramatic 23% drop in its stock value this Monday. This sudden decline comes in the wake of the company's announcement to issue rights worth 60 billion Danish kroner (approximately $9.4 billion). The decision was prompted by what Orsted describes as an "adverse development" in the United States offshore market.

Interim Earnings Report Highlights

In its interim earnings report for the first half of 2025, Orsted revised its directional guidance for Offshore from higher to neutral. This adjustment was attributed to lower wind speeds observed in the early months of 2025. Despite these challenges, the company reported a staggering 785% year-over-year increase in profit, reaching 8.2 billion Danish kroner (approximately €1.1 billion) for the six-month period.

Furthermore, Orsted's EBITDA saw a 10% rise in the first half of 2025 compared to the previous year, totaling 15.5 billion Danish kroner. However, not all financial indicators were positive; the cash flow from operating activities decreased by 19% on an annual basis, amounting to 7.8 billion Danish kroner.

Market Reaction

The market's response was swift and severe, with Orsted's stock price falling by 23.56% to 235.90 Danish kroner by 9:19 am CET.