Ørsted Braces for Job Cuts Amidst Mixed Analyst Outlook
Ørsted, the Danish renewable energy giant, is set to announce significant job cuts as early as next week, according to circulating reports. This news comes amidst a mixed outlook from analysts regarding the company's stock and a recent multi-billion dollar capital increase.
Ørsted has confirmed the completion of a substantial capital increase, aiming to bolster its balance sheet. However, the job cuts are a direct response to a dwindling project pipeline, with analysts adjusting their ratings accordingly. Berenberg maintains a 'buy' or 'outperform' stance, while Deutsche Bank and Bernstein have downgraded their recommendations to 'hold' or 'market perform'. Target prices vary widely, from 155 DKK to 540 DKK.
The job cuts are a consequence of challenges in the US business, including a stop-work order for the Revolution Wind project under the Trump administration. Ørsted has had to reduce investment plans twice in the last two years due to these issues. Investors are now eagerly awaiting news on these imminent job cuts and Ørsted's strategies to reverse its current downward trend.
Ørsted has scheduled a Pre-Close-Q3 event for October 7 and an interim report for the first nine months of 2025 on November 5. The capital increase is intended to secure investments in European core markets until 2027.
Ørsted's stock is currently under pressure, with analysts maintaining a 'Hold' recommendation. The upcoming announcements regarding job cuts and the company's plans for the future will be closely watched by investors, who hope these measures will help Ørsted break out of its current difficulties.
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