Offshore wind: Equinor now Ørsted’s second largest shareholder
Written by Nick Blenkey
Anders Opedal, CEO of Equinor: “The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector.”
In a move involving two Scandinavian companies who are significant players in the U.S. offshore energy sector, Norway’s Equinor ASA has acquired 41,197,344 shares in Denmark’s Ørsted A/S, corresponding to 9.8% of the shares and votes in the Danish company.
The transaction establishes Equinor as the second largest shareholder in Ørsted, after the Danish State, which holds a controlling stake in the company. Equinor is, itself, 67% owned by the Government of Norway.
“Equinor has a long-term perspective and will be a supportive owner in Ørsted. This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets. The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development,” says Anders Opedal, CEO of Equinor.
Equinor says that it is supportive of Ørsted’s strategy and management, and is not seeking board representation.
“This investment is in line with Equinor’s strategy of value driven growth in renewables. The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition”, says Opedal.
Ørsted has a net renewable generation capacity of around 10.4 GW, and a gross portfolio of offshore wind projects in execution of around 7 GW. The company’s ambition is to achieve a gross installed renewable capacity of around 35 to 38 GW by 2030. (1)
Equinor’s ownership position has been built over time, through a combination of market purchases and a block trade. The current market value of its holding in Ørsted is around $2.5 billion, based on a closing price Friday 4 October of DKK 418 per share and a USD/DKK exchange rate of 6.8.
Subject to obtaining regulatory approvals, Equinor intends to increase its ownership to 10%, but says there are currently no plans to further increase the stake.
