President Trump signed an administrative order on Monday to temporarily stop the sales of sea wind power in the US Federal Waters, and European wind energy and renewable energy companies were under pressure. The impairment costs announced by the Danish offshore wind power developer ORSED exceeded the expectations of Wall Street analysts, which exacerbated the pessimistic mood of the entire industry.
ORSED revealed that its subsidiary US subsidiary, which was in trouble, was worth 12.1 billion Dan Ying Kron ($ 1.68 billion), the company's stock price plummeted 18%in Copenhagen, the largest decline since November 2023.
CEO Maz Nipper wrote in a statement: "The impairment announced today, especially the continuous construction challenge, is very disappointing."
Nipper continued: "In the long run, we are still committed to the US market, because the potential of renewable energy can meet the growing power demand and create thousands of industrial employment positions throughout the United States. The complexity and uncertainty of the offshore market. "
The implementation of the "interest rate hike, underwater leasing and Sunrise Wind" project will lead to a total of US $ 1.68 billion in impairment costs in the fourth quarter of 2024. The Sunrise Wind project is located in Montok, New York, coast.
Alberto Gandolfi (Alberto Gandolfi), Mafalda Pombeiro, and Dhwani Khenwar, called the ORSED statement a "surprise" and warned "There may be more surprises": "
The ORSED has unexpectedly announced the performance of 2024 in advance; it is important that the company disclosed the impairment of 12 billion Dan Yingkeng (29 Dan Ying Krona), which involves: (i) the US interest rate rising (4.3 billion Dan Ying Krona), and the US interest rate (i) (II) The construction of the U.S. Underwater (3.5 billion Dan Ying Corona) and (III)) Sunrise further postponed. It is currently expected to be carried out in the second half of 2027 (4.3 billion Dan Crown). Although EBITDA "compliance" in 2024 (24.8 billion Dan Yupang, deducting income), we believe that these impairment is not good for the stock price. Here, we also pointed out that there is no risk of receiving any ITC bonuses, and import tariffs on offshore activities may cause increased damage.
Analysts maintain the "neutral" rating of the ORSED. The 12 -month target price is 445 Dan Ying Kerong.
After Trump issued an administrative order on Monday, the Danish company's Wuyun continued to gather, which suspended the new maritime wind power leasing sales of the federal waters and stopped the approval, license and loan issuance of land and offshore wind power projects. Essence
Trump's statement suppressed renewable energy stocks, resulting in the ISHARES Global Clean Energy ETF (ICLN) trading in front of the market slightly lower. As Trump is expected to reduce green energy expenditure, ICLN's stock price has fallen for 3.5 consecutive months. The current stock price is close to 2020.
After Olstand announced the impairment, the analysts of the entire Wall Street expressed serious concerns. Trump's administrative order was even worse, which shows that the risk of the US offshore wind power and renewable energy industry has increased (provided by Bloomberg News) The
Citi (neutral)
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Jenny Ping said the pre -released impairment figures are greater than the previously displayed
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It is expected that the delay/cost of the sunrise wind will increase DKK4.3B impairment will have a particularly negative effect on the stock price
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Astd's further impairment occurred when the industry faces political risks, and it is unlikely to boost confidence
RBC (Industry Execution)
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Analyst Alexander Wheeler wrote that management claims that it is still committed to American business and continues to see the value of American projects, which is unlikely to reassure the market
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The company's US business and the implementation of American projects continue to face major challenges
Jeffris (holding)
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Ahmed Farman pointed out that the impairment of DKK12.1B accounted for 9%of the market value at the final closing of the ORSED, although some of them were partially reflected in the price, especially the interest rate impairment
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The impairment of Sunrise Wind is particularly disappointing because it further reflects the risk of the US offshore wind power
Barclays Bank (the same weight)
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Analyst Dominic Nash wrote in a report that the scale and nature of the remaining impairment exceeded expectations
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It means that this is at least the third major profit early warning/impairment update since January 2023
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Given that Trump has faced higher risks in the US offshore wind power in terms of the industry, including the risk of the United States no longer further developing offshore wind power and the risk of submarine lease value is zero.
Trump said on Monday: "We won't do things."
There are many bad news in the Green Energy Bubble of Trump's 2.0 era.
Through zerohedge.com
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