Equinor has announced its intention to invest up to DKK6bn ($939m) into Ørsted’s emergency fundraising effort, aiming to stabilise the Danish offshore wind developer’s financial standing amid challenging market conditions.
The Norwegian oil and gas major plans to participate in Ørsted’s rights issue by subscribing to new shares, while maintaining its 10% stake in the latter.
The decision comes as Ørsted faces financial hurdles due to adverse developments in the US offshore wind market.
Equinor, 67% owned by the Norwegian state, holds the position of Ørsted’s second-largest shareholder. Concurrently, the Danish state, which controls over 50% of Ørsted’s shares, has confirmed its participation in the capital increase targeting DKK60bn ($9.41bn).
In December 2024, Equinor completed acquisition of a 10% interest in Ørsted at an average price of DKK398.5 ($62.48) per share for a total of $2.3bn.
Ørsted’s shares, which had declined significantly following an unexpected announcement about the capital raise in August, experienced a 4.7% increase upon Equinor’s announcement.
In a separate development, Norway’s sovereign wealth fund, owning around 3% of Ørsted shares, expressed support for the capital raise ahead of a shareholder meeting scheduled for 5 September 2025.
Equinor emphasised its long-term commitment to Ørsted and offshore wind energy, stating that participation in the rights issue aligns with its strategy and financial framework. The company plans to nominate a candidate for Ørsted’s board of directors before the next annual general meeting.
From the proceeds of the rights issue, Ørsted aims to strengthen its capital structure through 2027. Existing shareholders have pre-emptive rights to subscribe for their pro rata share to maintain their ownership levels.
Morgan Stanley & Co. International has underwritten any unsubscribed shares.
The funds will address Ørsted’s funding requirements, particularly due to changes in financing for the Sunrise Wind project, a 924MW offshore wind facility in the US. The offshore developer is also pursuing divestments in other projects as part of its strategy to bolster financial flexibility and focus on core business areas.
Recently, Ørsted’s 704MW Revolution Wind project was asked by the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) to halt activities on the outer continental shelf.
