Orsted, the world’s largest offshore wind farm company, reported a net loss of 1.70 billion Danish crowns ($265.5 million) for the third quarter, attributed to the impact of former U.S. President Donald Trump’s trade policies and resistance to renewable energy initiatives. The company’s shares have tumbled 85% since their peak in 2021, affected by rising costs, supply chain disruptions, and significant challenges in the U.S. market, where Trump halted several ongoing projects and suspended new licensing efforts. In this quarter, Orsted recorded impairment losses of 1.8 billion crowns.
The loss, while smaller than the anticipated 1.95 billion crowns according to analysts, represents a stark decline from a profit of 5.17 billion crowns in the same period last year. Additionally, Orsted’s profit before interest, tax, depreciation, and amortization (EBITDA), excluding new partnerships and cancellation fees, was reported at 3.06 billion crowns, falling short of the average forecast of 4.0 billion crowns. The company stated that the negative financial performance was primarily driven by increased tariffs in the U.S. and the impact of a stop-work order on the Revolution Wind project, although this was somewhat mitigated by declining interest rates. Overall, Orsted’s results illustrate the significant challenges facing renewable energy firms in navigating political and economic headwinds, particularly in the U.S. market.