Newly appointed Orsted CEO Rasmus Errboe has committed to a “relentless” focus on 8400MW of offshore wind the company has under construction following the cancellation of a 35-38GW capacity ambition and a pledge to cut spending by 25%.
Errboe said the company will “diligently monitor and mitigate risks, while we recognise that the supply chain remains challenging”.
The 8.4GW includes Orsted’s German programme of Gode Wind 3 and Borkum Riffgrund 3, the 920MW Changhua 2b and 4 build in Taiwan, the 704MW Revolution Wind and 924MW Sunrise Wind duo in the US, the nearly 3GW Hornsea 3 in the UK, and the 1.5GW Baltica 2 build in Polish waters.
“We will sharpen our geographical and technological footprint, and we will prioritise our business platform at all times to ensure a disciplined and strict capital allocation focusing on value over volume,” Errboe told reporters.
“We will be rightsizing our cost base and organisation over time, and it is too early to say what it means for our organisation.”
The new CEO did not rule out further impairments on Orsted’s two US projects, both of which have taken on impairments in recent months.
“We will continue to diligently monitor and move forward with the construction of the projects,” Errboe said, referring to Revolution Wind and Sunrise Wind, but declined to say whether Orsted was planning for any further impairment.
Errboe declined to give any further detail about which markets or projects Orsted may pull back from as part of a reduced investment plan.