Danish wind firm Ørsted is insisting its current crisis was “made in Washington,” pointing directly to President Trump for a stock crash that has wiped out nearly a third of its value. The company announced it needs to raise $9 billion from shareholders to cope with the damage.
The company’s grievance stems from its inability to execute its business plan in the US. It told investors that “recent material developments” under the Trump administration have made its American assets un-investable, preventing it from selling a stake in its eastern seaboard project to raise funds.
This made-in-Washington crisis is amplified by existing global challenges, including supply chain disruptions and higher borrowing costs. The administration’s shock decision to halt an approved project by a Norwegian competitor has further solidified the perception of extreme political risk.
The Danish state is supporting the $9 billion rights issue to help Ørsted navigate the turmoil. The company’s CEO, Rasmus Errboe, said the funds were vital to reinforce its capital structure in an “extraordinary situation” and ensure its global projects remain on track.