Ørsted Reports DKK 12.1 Billion Impairment Due to US Market Developments

Ørsted A/S has disclosed a substantial impairment of DKK 12.1 billion for Q4 2024. This is attributed to rising US interest rates, reduced seabed lease values, and challenges in executing the Sunrise Wind project. Despite these setbacks, the company's expected EBITDA for 2024 remains at DKK 24.8 billion, aligning with previous guidance.

The hike in US interest rates increased the weighted average cost of capital by 75 basis points, affecting offshore project valuations, notably leading to a DKK 4.3 billion impairment. Additionally, seabed leases faced a DKK 3.5 billion impairment due to market uncertainties.

Sunrise Wind's schedule delays and increased costs, compounded by supply chain issues, have also resulted in a further DKK 4.3 billion impairment. Ørsted's CEO Mads Nipper remains optimistic about the long-term US market potential despite these immediate challenges.