Ørsted, the world’s largest offshore wind developer, announced plans to reinstate dividends for the financial year 2026 after experiencing significant challenges over the past two years. The company reported heavy losses, rising costs, and difficulties stemming from the U.S. Administration’s stance on offshore wind projects. In its annual report for 2025, released on Friday, Ørsted confirmed that it would not pay dividends for the 2025 financial year, but expressed optimism for a return to dividend payments the following year.
Despite the setbacks, Ørsted reiterated its guidance for 2026, highlighting that a recent $9.35 billion rights issue and the completion of its divestment program have bolstered its financial position. Shares of Ørsted rose in Copenhagen following the report’s release, reflecting investor confidence in the company’s recovery strategy.
Strategic Focus and Financial Resilience
The company outlined progress in its four strategic priorities: strengthening the balance sheet, advancing its 8.1 GW offshore wind construction portfolio, maintaining disciplined capital allocation, and enhancing competitiveness. Rasmus Errboe, Group President and CEO, emphasized the company’s renewed financial flexibility, stating, “We’ve strengthened our financial foundation and focused our business on offshore wind, and we now have financial flexibility to pursue attractive offshore wind opportunities in Europe and select markets in Asia Pacific.”
Ørsted’s ongoing construction program is expected to increase its total installed offshore wind capacity to over 18 GW by the end of 2027. This ambitious goal underscores the company’s commitment to becoming a leader in renewable energy.
Successful Divestment and Future Prospects
Earlier this week, Ørsted announced the sale of its entire European onshore business to a fund managed by Copenhagen Infrastructure Partners (CIP) for $1.7 billion. This transaction marks a significant milestone in Ørsted’s divestment program, which also included the sale of a 50% stake in the 2.9 GW Hornsea 3 Offshore Wind Farm to funds managed by Apollo Global Management for $5.6 billion, and a 55% stake in the 632-MW Greater Changhua 2 Offshore Wind Farm in the Taiwan Strait to Cathay Life Insurance and its affiliate for approximately $790 million.
These strategic moves are designed to reinforce Ørsted’s focus on offshore wind, positioning the company for growth in a rapidly evolving energy landscape. The planned return to dividends in 2026 signals a positive outlook for shareholders, as Ørsted navigates through the challenges of recent years and sets the stage for future opportunities in sustainable energy.
