Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Ørsted cuts jobs, exits markets and pauses divi after challenging year
(Sharecast News) - Danish energy giant Ørsted on Wednesday announced job cuts, a dividend suspension and the exit of several offshore markets after it swung to a net loss of more than DKK 20bn (£2.3bn) in 2023. Ørsted, which is the world's largest offshore wind developer, faced "substantial challenges" last year, according to group chief executive and president Mads Nipper.
"Our financial results are adversely affected by the impairments we took on our US offshore projects in the third quarter of 2023 and the provision for cancellation fees related to ceasing the development of the offshore project Ocean Wind 1," Nipper said.
The company was forced to take a hit of DKK 9.6bn in cancellation fees related to its decision to cease the development of Ocean Wind 1, as well as DKK 19.9bn in impairment losses, resulting in a net loss of DKK 20.2bn, compared with a profit of DKK 15.0bn in 2022.
Nevertheless, adjusted EBITDA amounted to DKK 24.0bn in 2023, above company guidance of DKK 20-23bn.
In response, Ørsted has unveiled a new business plan, through which is aims to hit 35-38 GW installed renewable capacity by 2030, more than double the current installed capacity of 15.7 GW but lower than previous guidance of 50 GW.
"We've revisited our portfolio to prioritise growth options with the highest potential for value creation and at the same time reduce risks in the development and execution of our projects," Nipper said.
As part of the review, 600-800 positions will be cut globally, resulting in 250 people being made redundant in the coming months, to make "leaner and more efficient company", according to Nipper.
Ørsted also decided to pause dividends for 2023, 2024, and 2025, and said it was exiting several offshore markets (including Norway, Spain, and Portugal), deprioritising development activities in Japan, and planning for a leaner development within floating offshore wind and P2X.
The stock was down 0.5% DKK383.60 by 1224 in Copenhagen.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
