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Investing.com -- Orsted reported a quarterly net loss of 1.70 billion Danish crowns ($265.5 million) as U.S. tariffs and political resistance to renewable energy weighed on results.
The loss for the July–September period was smaller than the 1.95 billion crowns deficit expected by analysts in a company poll, but marked a sharp reversal from a 5.17 billion crowns profit a year earlier.
The Danish company booked impairment charges of 1.8 billion crowns in the third quarter.
“The negative development was driven by increased tariffs in the U.S. and negative impact from the stop-work order on Revolution Wind, partly offset by decreasing interest rates,” Orsted said in a statement.
Shares in Orsted rose 2% in early European trading.
Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding partnerships and cancellation income, dropped to 3.06 billion crowns, below the 4.0 billion crowns expected.
For the first nine months of the year, Orsted reported EBITDA of 17 billion crowns, down 1% from 17.2 billion crowns a year earlier and below the consensus estimate of 17.9 billion crowns.
Net debt rose to 83.2 billion crowns from 62.8 billion crowns in the same period last year.
The company reaffirmed its full-year EBITDA guidance of 24–27 billion crowns, excluding new partnerships and cancellation fees.
Commenting on the report, RBC Capital Markets analysts said they "expect the focus of the earnings call to be on U.S. projects and any further information on planned disposals following the announcement of the Hornsea 3 farm down."
The results come a day after Orsted announced the sale of a 50% stake in its Hornsea 3 offshore wind project in Britain to Apollo Global Management for about 39 billion crowns ($6.09 billion). The sale, seen as critical to averting a credit rating downgrade, leaves Orsted with the remaining half of the £8.5 billion ($11.41 billion) project.
Orsted, the world’s largest offshore wind developer, is seeking to rebuild investor confidence amid persistent cost pressures linked to supply chain challenges, inflation, and uncertainty stemming from U.S. President Donald Trump’s policies opposing renewable energy.