Danish offshore wind power giant Orsted said Thursday it would downsize investments as it reported a small net profit for 2024 following delays and cancellations of U.S. projects as the industry grapples with the pace of expansion.
Orsted's profit after tax reached 16 million Danish kroner ($2.2 million) last year, after a loss of 20 million kroner in 2023.
The group replaced chief executive Mads Nipper last week with deputy CEO Rasmus Errboe in an effort to turn things around at the renewables company.
Orsted was dealt a $4 billion blow in 2023 when it canceled wind farm projects in the United States, a crucial market for the group.
It booked writedowns totaling 12.1 billion Danish kroner in the last quarter of 2024 due to interest rate hikes, a decrease in the value of seabed leases off the U.S. East Coast, and the delay of the Sunrise Wind project off New York state.
"The year 2024 proved to be a challenging year for the industry and for Orsted," Errboe said in a statement.
"We've experienced headwinds and have therefore taken necessary actions, including the adjustment of our business plan with a reduced investment program, to strengthen our capital structure and value creation," he said.
Orsted now plans to make investments of between 210 billion and 230 billion kroner by 2030, down from previous plans of 270 billion kroner.
The return of Donald Trump to the White House could prove another challenge as the U.S. president temporarily froze federal permitting and loans for all offshore and onshore wind projects.
Long dependent on fossil fuels before emerging as a champion of offshore wind power, Orsted has seen its share price sink since January 2021.
