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Investing.com -- Ørsted A/S (CSE:ORSTED) shares plunged over 26% on Monday after the company announced a planned DKK 60 billion rights issue to cover higher costs for its Sunrise Wind offshore wind project in the United States and to strengthen its capital structure.
The Dutch energy company said DKK40 billion of the raise will fund the U.S. project after a planned partial divestment and non-recourse project financing failed to materialize.
The remaining DKK 20 billion will support a target of maintaining a funds-from-operations-to-net-interest-bearing-debt ratio above 30%. The Danish state, Ørsted’s 50.1% shareholder, has agreed to subscribe its pro rata share.
J.P. Morgan said the company’s capital expenditure plans still rely on more than DKK 35 billion in divestments, and questioned whether the planned raise will be sufficient.
Ørsted has started a sales process for its European onshore business, with expected proceeds of over DKK 35 billion in 2025 or 2026.
The company reaffirmed its 2025 EBITDA guidance of DKK25 billion to DKK28 billion, excluding new partnership agreements and cancellation fees. Underlying EBITDA for the first half of 2025 was DKK5.3 billion.
Ørsted’s prior trading day closing price was DKK308.60, with a 52-week range of DKK237.40 to DKK458.30.
The board will convene an extraordinary general meeting on Sept. 5 to propose the equity raise.
The prospectus and rights issue terms are expected in the first half of September, with closing in the first half of October.