The image taken on September 4, 2023 shows wind mills in the Marine Wind Park in New York built by the Danish Giant of the Orsted Wind Force in 2002-2003 in the Baltic Sea near Gedser in Denmark.
Thomas traasdahl | AFP | Getty images
Norwegian oil giant Equinor On Monday he promised to support Denmark Orsted with almost $ 1 billion of fresh capital, supporting the besieged company in the middle of sustained attacks on wind projects on the high seas of the Trump administration.
In an apparent sample of confidence in the world’s offshore wind developer, Equinor pointed out his intention to participate in the issuance of Danish Krone rights ($ 9.4 billion of $ 9.4 billion) planned from Orsted and said he intended to maintain his 10% property in the company.
Equinor said that his strategic support of the rights problem reflects his confidence in the underlying business of ORSted and the competitiveness of the high seas wind in the combination of future energy. The Norwegian Energy Group backed by the State is the second largest shareholder in Orsted, behind the Danish government.
As part of the measure, Equinor said he would name a candidate for the Orsted Board of Directors.
Orsted’s shares increased 3.6% in the news, before passing the profits. The price of the shares, which decreased almost 90% of 2021, Pico, achieved a new minimum record last month after the Trump administration ordered the company to stop work in an almost complete wind forest.
Equinor’s actions were last saw 0.2% higher on Monday morning.
Both companies have been sailing for the challenges around the offshore wind industry, with equinor saying that the developments in the United States are closely monitoring, and that intends to remain in dialogue with Orsted.
The wind industry has been a goal for the president of the United States, Donald Trump, since his first day in office. The last blow came on Friday when the United States Department of Transportation canceled $ 679 million in federal funds for a dozen infrastructure projects that would support wind energy in the high seas throughout the country.
“Sparkling wind projects are using resources that could otherwise revitalize the United States maritime industry,” said the Secretary of Transportation Sean Duffy in a statement.
RBC Capital Market analyzes said the equinor movement to support ORSted could be seen as a first step for the company considering the possibility of a potential fusion between the two wind wallets on the high seas.
“The challenge with participating completely is that the company will effectively increase its net exposure to two wind projects on 100%, none of which are likely to be cultivated in the short term, and where political support remains uncertain,” said RBC Market Capital analysts in a research note.
“The positive incremental is that, together with their maintained participation, Equinor will now have a representation of the Board, taking full advantage of a challenging situation,” they added.
Equinor and Orsted spokesmen did not immediately respond to a request for CNBC comments.
– Spencer Kimball and Ganesh Rao of CNBC contributed to this report.
