Wind farm developer Orsted
’s plan to raise much-needed capital is at risk following a U.S. order to halt construction of a near-complete project, and the Danish group’s share price could come under pressure on Monday, analysts said.
The Trump administration’s Bureau of Ocean Energy Management (BOEM) published its stop-work order late on Friday, forcing the suspension of a project that was 80% complete with all offshore foundations in place and 45 out of 65 wind turbines installed.
The timing of the halt to Revolution Wind off Rhode Island is particularly damaging for Orsted, which announced earlier this month a plan to raise 60 billion Danish crowns ($9.42 billion) through a rights issue.
“This is a huge hurdle with regards to raising capital,” Sydbank analyst Jacob Pedersen told Reuters. “I’ve experienced a lot in my more than 20 years as a stock analyst, but this tops it all, I’m stunned,” he added.
