Danish wind farm developer Orsted cut its operating profit outlook for 2025 on Friday, shortly before shareholders were set to vote on a crucial capital raise as the company battles U.S. President Donald Trump's opposition to wind power.
Once celebrated as a trailblazer in offshore wind, Orsted now finds itself in dire straits, grappling with industry-wide challenges and the risk of further losses on its two remaining projects off the U.S. East Coast.
The company now expects earnings before interest, depreciation and amortisation excluding new partnerships and cancellations fees of between 24 billion and 27 billion Danish crowns ($3.76-$4.24 billion) compared to a previously guided range of 25-28 billion crowns.
"The primary driver for the adjustment to the EBITDA guidance is the impact from the lower-than-normal offshore wind speeds across the offshore portfolio," Orsted said in a statement.
Its profit outlook was also impacted negatively by a delay on its Greater Changhua 2b wind farm project under construction in Taiwan, where an export cable had been damaged, it said.
Orsted's shareholders are due to vote on Friday on a proposed emergency $9.4 billion share issue, which is backed by the company's major owners.
The earnings warning was not expected to impact Orsted's medium-term targets, the company said.
($1 = 6.3751 Danish crowns)
(Reuters - Reporting by Stine Jacobsen, editing by Terje Solsvik)