Orsted AS Faces Challenges in US Market

Orsted AS, a Danish renewable energy company, has experienced a decline in share prices following recent developments. The company’s shares have dropped approximately 10% after the US administration ordered a halt to wind farm construction off the US coast.

Key Events

• The US administration issued a statement ordering the halt of wind farm construction off the US coast.
• Orsted’s share prices dropped approximately 10% in response to the announcement.
• Barclays downgraded Orsted’s stock to underweight, citing policy risks.
• Stressed market conditions in derivatives have been identified as a challenge for Orsted.

Market Impact

The developments have heightened concerns about policy risks and the future of offshore wind projects in the US. The challenges faced by Orsted AS are a result of the following factors:

• Policy risks associated with the US administration’s decision
• Downgrade of Orsted’s stock by Barclays
• Stressed market conditions in derivatives