Orsted trumps Q1 expectations, drops Hornsea 4 offshore project in U.K.

Published 07/05/2025, 07:42
© Reuters.

Investing.com -- Orsted (CSE:ORSTED) reported stronger-than-expected first-quarter operating results on Wednesday but acknowledged ongoing difficulties in the offshore wind sector.

EBITDA for the quarter, excluding gains from new partnerships and cancellation fees, totaled 8.6 billion Danish crowns ($1.31 billion), surpassing the 7.88 billion forecast by analysts in a company-compiled poll.

Alongside the results, Orsted also announced on Wednesday it will no longer pursue its Hornsea 4 offshore wind project in the U.K. The company said it expects to incur break-away costs ranging from 3.5 billion to 4.5 billion Danish crowns ($532.9 million–$685.2 million).

The Danish renewable energy group, whose market value has dropped around 80% since its 2021 peak due to rising costs and supply chain disruptions, now also faces resistance in the U.S., where President Donald Trump’s administration is pushing back against offshore wind projects.

"The offshore wind industry is challenged in the short term with headwinds relating to supply chain, regulatory, and macroeconomic developments," the company said.

Orsted reported a profit of 4.9 billion Danish crowns for the period, up 2.3 billion from the same quarter last year. Return on capital employed (ROCE) was 4.6%, but adjusted for impairment losses and cancellation fees in Q1 2025, ROCE stood at 10.2%.

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