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Ørsted shakes up management team after shelving US projects

The Financial Times|Rachel Millard|November 14, 2023
DenmarkGeneralOffshore Wind
Ørsted is particularly exposed to the US, where it expanded aggressively as it sought to transform itself from an oil and gas company into a major renewable energy company. Shares in the group, which is majority owned by the Danish government, have tumbled about 55 per cent this year and were little changed in early trading on Tuesday.

Finance and operations chiefs depart as wind developer grapples with rising costs
 
Ørsted has overhauled its top management as the world’s largest offshore wind developer attempts to restore investors’ confidence after abandoning projects in the US and slashing the value of its portfolio.
 
The Danish group said on Tuesday that Daniel Lerup, finance chief, and Richard Hunter, chief operating officer, were leaving with immediate effect.
 
Mads Nipper, who has been Ørsted’s chief executive since 2021, said the company required “new and different capabilities”.
 
Following the shake-up, Rasmus Errboe, chief executive of its European business, will serve as interim finance chief. Andrew Brown, a member of Ørsted’s board, will be interim …
... more [truncated due to possible copyright]
Finance and operations chiefs depart as wind developer grapples with rising costs
 
Ørsted has overhauled its top management as the world’s largest offshore wind developer attempts to restore investors’ confidence after abandoning projects in the US and slashing the value of its portfolio.
 
The Danish group said on Tuesday that Daniel Lerup, finance chief, and Richard Hunter, chief operating officer, were leaving with immediate effect.
 
Mads Nipper, who has been Ørsted’s chief executive since 2021, said the company required “new and different capabilities”.
 
Following the shake-up, Rasmus Errboe, chief executive of its European business, will serve as interim finance chief. Andrew Brown, a member of Ørsted’s board, will be interim chief operating officer.
 
Developers of offshore wind, which has been hailed as part of the answer to global warming, have over the past two years been hit by supply chain disruptions, rising costs and higher interest rates. America’s embryonic industry, where Ørsted is the biggest player, is facing particularly acute challenges.
 
Analysts at RBC welcomed the management changes, noting that “a difficult period for Ørsted has culminated in the company taking a new direction with two senior members of the management team”.
 
Nipper acknowledged earlier this month that the writedowns would damage investors’ confidence. Rating agency S&P subsequently put the group’s long-term rating on credit watch negative.
 
Separately, Ørsted this week also pulled out of offshore wind developments in Norway as it seeks to rationalise its portfolio, Reuters reported.
 
Ørsted is particularly exposed to the US, where it expanded aggressively as it sought to transform itself from an oil and gas company into a major renewable energy company.
 
Shares in the group, which is majority owned by the Danish government, have tumbled about 55 per cent this year and were little changed in early trading on Tuesday.
 
The company is expected to decide later this year whether to give the final go-ahead to its major offshore wind project in the North Sea.

 


Source:https://www.ft.com/content/95…

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