Danish energy giant Ørsted saw modest stock movement despite two major developments: a federal court victory allowing construction to resume on the Sunrise Wind offshore wind farm and the sale of its entire European onshore wind business to Copenhagen Infrastructure Partners for 10.7 billion kroner.
The Ørsted stock opened with a slight decline of around 0.6 percent, approximately 35 minutes after the market opened. The muted reaction suggests investors had already priced in expectations for positive developments or remain cautious about the company’s broader challenges in the U.S. market.
Federal Court Grants Ørsted Permission to Resume Construction
A federal judge ruled in Ørsted’s favor late yesterday, granting the company permission to restart construction on the Sunrise Wind offshore wind farm. The project had been subject to a construction halt since December 22, following concerns raised by U.S. authorities about potential radar interference and national security risks.
The construction stoppage, which affected five major offshore wind projects along the U.S. East Coast, has cost Ørsted an estimated 600 to 700 million kroner, according to Jacob Pedersen, chief equity analyst at AL Sydbank. All five construction halts have now been lifted by the federal court system following yesterday’s ruling in Washington D.C.
Sunrise Wind is being developed by Ørsted east of New York using turbines from Siemens Gamesa. The project is scheduled for completion by the end of 2027. In addition to Sunrise Wind, Ørsted is also developing Revolution Wind, which received approval to resume work on January 12 and is expected to be completed later this year.
Trump Administration Faces Setbacks in Offshore Wind Battle
The ruling represents the fifth consecutive defeat for the Trump administration in its efforts to halt offshore wind development. The federal judge determined that national security concerns were not as significant as U.S. authorities claimed, based on classified security assessments that led to the original construction ban.
Despite this victory, the legal battle is far from over. A main trial is being prepared to determine whether offshore wind farms like Sunrise Wind genuinely pose radar interference and security risks to the United States. Pedersen believes the five court decisions point toward a favorable outcome for Ørsted in any future proceedings.
Revolution Wind Project Poses Challenge for Administration
Revolution Wind, Ørsted’s second major offshore wind project off the U.S. East Coast, is further along in development and scheduled to begin operations later this year. As a result, the Trump administration faces greater difficulty blocking this particular project.
Once electricity production begins, stopping these projects becomes significantly more complicated. Sunrise Wind, which received construction approval yesterday, must not face substantial further delays if the Trump administration wants to build a stronger case for enforcing construction halts with greater impact.
If Sunrise Wind were completely scrapped, Ørsted would stand to lose approximately 50 billion kroner over the project’s lifetime. The stakes are exceptionally high for the company, which has already weathered significant financial challenges in recent quarters.
Ørsted Completes Sale of European Onshore Wind Business
Earlier in the morning, Ørsted announced it had reached an agreement with Copenhagen Infrastructure Partners to sell its entire European onshore wind business. The deal is valued at 10.7 billion kroner and requires regulatory approval before completion. The Danish state owns a majority stake in Ørsted.
The sale comes after Ørsted divested 50 percent of the Hornsea 3 offshore wind farm and 55 percent of Changhua 2 in China. Combined with the onshore sale, the company has now sold assets worth more than 46 billion kroner in 2025 and 2026.
Trond Westlie, Ørsted’s chief financial officer, stated that the divestment program is now complete with the sale of the European onshore business, and the company’s financial position has been significantly strengthened. He expressed satisfaction with finding Copenhagen Infrastructure Partners as the new owner, noting that Ørsted will now focus on offshore wind in its core European markets.
Financial Performance Under Pressure
Ørsted’s divestment strategy comes as the company faces serious financial headwinds. The energy giant posted a net loss of 1.7 billion kroner in the third quarter of 2025, a dramatic reversal from a net profit of 5.2 billion kroner in the same quarter of 2024. Underlying EBITDA tumbled by 31 percent in the third quarter.
For the nine-month period through the third quarter of 2025, operating profit fell to 18.6 billion kroner from 23.6 billion kroner in the corresponding period of 2024. Low wind speeds significantly impacted earnings, directly reducing offshore wind generation during the quarter.
Impairment losses totaled 1.8 billion kroner in the third quarter of 2025. These losses were driven by 50 percent tariffs on steel and aluminum imposed in the U.S., which accounted for 2.5 billion kroner, and the impact of the stop-work order on the Revolution project.
Long-Term Outlook and Strategic Priorities
For 2025, Ørsted expects EBITDA, excluding new partnerships and cancellation fees, to range between 24 and 27 billion kroner, with gross investments between 50 and 54 billion kroner. For the 2025 to 2027 period, the company projects group EBITDA exceeding 28 billion kroner, with an average return on capital employed of approximately 11 percent.
Looking further ahead, Ørsted targets a return on capital employed exceeding 13 percent for 2028 to 2030 and plans gross investments of approximately 145 billion kroner for the 2025 to 2027 period. The company has suspended dividend payments but aims to reinstate them for the 2026 financial year, signaling management confidence in recovery.
Ørsted remains committed to maintaining a solid investment-grade credit rating and targets keeping its funds from operations to adjusted net debt ratio above 30 percent. The company held 10.68 billion kroner in cash as of the latest reporting period.
Stock Valuation Remains Under Pressure
Ørsted’s stock has experienced a sharp decline from historical levels, currently down more than 84 percent from its all-time high of 1,355 kroner. The stock trades below both its 20-day and 200-day moving averages, indicating sustained downward pressure.
According to some analyses, Ørsted is trading approximately 18 percent below its fair value estimate, suggesting the stock may be undervalued at current levels around 118 kroner. The one-year analyst estimate stands at 453.48 kroner, pointing to significant potential upside if the company can execute its recovery strategy successfully.
Return on capital employed has deteriorated markedly, falling to 2.0 percent in the first nine months of 2025, down six percentage points year over year. This decline was primarily due to higher impairment losses and increased capital deployed into assets under construction. Adjusted ROCE, excluding impairment losses and cancellation fees, was 10.2 percent for the nine-month period, compared to 11.5 percent in the prior year.
Sources and References
The Danish Dream: Ørsted A/S: Pioneering
The Danish Dream: Banking in Denmark for Foreigners (Updated 2025)
DR: Ørsted-aktien åbner med beskedent fald trods medvind i retssag og frasalg
