Equinor Becomes Ørsted A/S’s Second-Largest Shareholder with Major Share Acquisition
Equinor ASA has become the second-largest shareholder in Ørsted A/S following a significant share purchase in the Danish wind energy company.
The company acquired 41,197,344 shares in Ørsted, representing 9.8% of the total shares and voting rights. The Danish government retains a controlling stake in Ørsted.
Ørsted boasts a net renewable generation capacity of approximately 10.4 gigawatts (GW) and is currently executing offshore wind projects with a gross portfolio of around 7 GW. The company aims to achieve a gross installed renewable capacity of 35 to 38 GW by 2030. This net renewable generation capacity includes Ørsted’s equity share in offshore wind, onshore wind, and solar power generation.
“Equinor brings a long-term vision and will be a supportive owner of Ørsted. This counter-cyclical investment in a leading developer, complemented by a premium portfolio of operational offshore wind assets, enhances Equinor’s own offshore wind portfolio of large projects under development,” stated Equinor CEO Anders Opedal.
He added, “This investment aligns with Equinor’s strategy for value-driven growth in renewables. While the offshore wind industry currently faces challenges, we remain optimistic about its long-term potential and the vital role it will play in the energy transition.”
Equinor noted that its stake in Ørsted was built gradually through market purchases and a block trade. Pending regulatory approvals under applicable Foreign Direct Investment regulations, the company plans to raise its ownership to 10%.
Additionally, Equinor expressed its support for Ørsted’s strategy and management, clarifying that it does not seek board representation.
The current market value of Equinor’s investment in Ørsted stands at approximately $2.5 billion, with the transaction falling within the company’s established financial framework.
In August, Ørsted reported a loss of $250 million (DKK 1.68 billion) for the second quarter, up from a loss of $79.3 million (DKK 538 million) in the same quarter last year, primarily due to delays in an offshore wind project in the U.S.
For the first half of the year, Ørsted’s net income was $137.22 million (DKK 931 million), down from $390 million (DKK 2.66 billion) during the same period in 2023.
Despite the setbacks, Ørsted reported earnings from offshore projects totaling $1.67 billion (DKK 11.3 billion), an increase of $340 million (DKK 2.3 billion) year-on-year. This growth was attributed to the ramp-up of generation at its offshore wind farms, including Greater Changhua 1 and 2a, South Fork, and Gode Wind 3, alongside higher wind speeds and elevated prices on inflation-indexed Contracts for Difference (CfDs) and green certificates.
However, the company faced impairment losses in the first half, mainly due to halting the FlagshipONE project, delays in the onshore substation for Revolution Wind, updates to fair value measurements related to Ocean Wind seabeds, and rising U.S. long-term interest rates.
