Bulletin: Orsted Capital Expenditure Reduction Plan Still Offers Limited Headroom For Tight Credit Metrics

STOCKHOLM (S&P Global Ratings) Feb. 14, 2025--S&P Global Ratings said today that Orsted's updated strategy should lead to a gradual improvement in credit metrics in the second half of 2025 and in 2026, although its headroom will remain tight. Execution of the company's planned farm-downs, notably Hornsea 3's, remains critical to partially fund upcoming investments while maintaining financial resilience. On Feb. 6, 2025, Orsted revised down its capital expenditure (capex) guidance for 2024-2030 by 25% to Danish krone (DKK) 210 billion-DKK230 billion. We note management's proactive measures to fortify the balance sheet following unexpected impairments of DKK15.6 billion in 2024, which notably delayed the start of its key project, Sunrise Wind. We understood the reduction in investment is toward the

...February 14, 2025 STOCKHOLM (S&P Global Ratings) Feb. 14, 2025--S&P Global Ratings said today that Orsted's updated strategy should lead to a gradual improvement in credit metrics in the second half of 2025 and in 2026, although its headroom will remain tight. Execution of the company's planned farm-downs, notably Hornsea 3's, remains critical to partially fund upcoming investments while maintaining financial resilience. On Feb. 6, 2025, Orsted revised down its capital expenditure (capex) guidance for 2024-2030 by 25% to Danish krone (DKK) 210 billion-DKK230 billion. We note management's proactive measures to fortify the balance sheet following unexpected impairments of DKK15.6 billion in 2024, which notably delayed the start of its key project, Sunrise Wind. We understood the reduction in investment is toward the end of the 2024-2030 period; hence, we do not expect any swift improvement in credit ratios over 2025 and 2026. A key driver for the credit rating trajectory is instead the execution...

Bulletin