View of an offshore wind energy park during a press moment of Orsted, on Tuesday 06 August 2024, on the transportation of goods with Heavy Lift Cargo Drones to the offshore wind turbines in the Borssele 1 and 2 wind farm in Zeeland, Netherlands.
Nicolas Maeterlinck | Afp | Getty Images
Shares in wind farm developer Orsted tumbled soon as trading kicked off on Monday after the U.S. government ordered the company to halt construction of a nearly completed project.
Around half an hour after markets opened, the company’s shares were around 17% lower.
Late on Friday the U.S.’ Bureau of Ocean Energy Management had issued a stop-work order for the Revolution Wind Project off of Rhode Island. According to Orsted, the project is 80% complete and 45 out of 65 wind turbines have been installed.
The company also said that it would comply with the U.S. order and that it was considering options to resolve the issue and press ahead with construction.
The order comes at a critical time for Orsted, which is seeking to raise much-needed capital under plans that analysts tell Reuters are now under pressure.
Orsted had announced plans for a 60 billion Danish kroner ($9.4 billion) rights issue earlier this month. On Monday, the company said it would continue with the proposal, noting that it had the support of its majority stakeholder, the Danish state.
Shares have pulled back sharply since the rights issue plans were announced.
This is a developing story, please check back for updates.