DNNGY - Orsted Navigates Q4 Challenges: Dividend On Hold Equity Raise Sidestepped

2024-02-09 17:43:27 ET

Summary

• Orsted faced significant challenges last year, incurring massive impairments of approximately $4 billion due to the cancellation of its Ocean Wind projects in the United States.
• The company has decided against an equity issuance to protect its balance sheet, instead opting for a series of strategic moves, including pausing dividends for three years.
• Despite the setbacks, Orsted is focusing on optimizing its portfolio through divestments and farm-downs expected to generate significant proceeds and is maintaining its commitment to a solid investment grade rating.
• The company is therefore adjusting its business plan to ensure sustainable growth and profitability in the long term, but investors appear overly pessimistic, which has resulted in very undervalued shares.

Last year was a tough one for Ørsted A/S ( OTCPK:DNNGY ), which saw massive impairments of roughly $4 billion on its Ocean Wind United States projects. This was the result of a decision to cancel them, due to several factors including high inflation, rising interest rates, and supply chain issues that made them no longer viable....

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