Published by Global Banking & Finance Review®
Posted on January 20, 2025
2 min readLast updated: January 27, 2026
Add as preferred source on Google
Orsted announces a $1.7 billion impairment due to US rate hikes, affecting its Sunrise Wind project with delays and increased costs.
COPENHAGEN (Reuters) -Offshore wind developer Orsted on Monday posted an impairment charge of 12.1 billion Danish crowns ($1.69 billion) in the fourth quarter, citing a delay and higher costs for its Sunrise Wind project, as well as higher U.S. financing costs.
The company said it had reassessed the 924-megawatt offshore wind project, situated about 30 miles east of Montauk, New York, to include delays and increased costs, which would lead to an impairment of 4.3 billion crowns in the fourth quarter.
"The impairments announced today, and especially the continued construction challenges, are very disappointing," Orsted CEO Mads Nipper said in a statement.
"We remain committed to the U.S. market in the long term with its potential for renewables ... We continue to navigate the complexities and uncertainties we face in a nascent offshore industry in the new U.S. market," he added.
The expected commissioning of Sunrise Wind has been delayed into the second half of 2027, Orsted said, adding that project costs had increased in particular with regard to the monopile foundations to keep fabrication and installation on track.
Orsted also said higher U.S. financing costs had hurt its U.S. portfolio, primarily its offshore wind projects, leading to an impairment of 4.3 billion crowns in the fourth quarter.
The company's preliminary profit before interest, tax, depreciation and amortisation, and excluding new partnerships and cancellation fees, landed at 24.8 billion crowns for the full year of 2024.
($1 = 7.1779 Danish crowns)
(Reporting by Gnaneshwar Rajan in Bengaluru and Louise Rasmussen in Copenhagen; Editing by Nia Williams, Rod Nickel and David Gregorio)
Orsted announced an impairment charge of 12.1 billion Danish crowns, approximately $1.69 billion, in the fourth quarter.
The impairment charge was attributed to delays and increased costs associated with the offshore wind project located east of Montauk, New York.
The commissioning of the Sunrise Wind project has been delayed into the second half of 2027.
Higher U.S. financing costs have negatively impacted Orsted's U.S. portfolio, particularly its offshore wind projects, leading to an impairment of 4.3 billion crowns.
Despite the challenges, Orsted CEO Mads Nipper expressed a commitment to the U.S. market, citing its long-term potential for renewable energy.
Explore more articles in the Finance category
