Orsted's Unexpected Profit Amid Offshore Wind Industry Challenges

Orsted, a renewable energy company, reported a better-than-expected first-quarter profit. Despite this, the offshore wind industry faces challenges, including supply chain issues and opposition in the U.S. Orsted's market value has dropped significantly due to cost inflation and supply disruptions.

Orsted, a leading renewable energy company, has announced a surprisingly strong first-quarter operating profit that surpassed market expectations.

Despite this financial performance, the company highlighted ongoing challenges within the offshore wind industry, citing supply chain issues, regulatory changes, and broader macroeconomic factors. This comes as Orsted's market value has tumbled by approximately 80% from its 2021 high, exacerbated by cost inflation and supply disruptions. The situation is further complicated in the United States, where offshore wind developments face opposition from the Trump administration.

For the January-March period, Orsted's profit before interest, tax, depreciation and amortization (EBITDA), excluding factors like new partnerships and cancellation fees, reached 8.6 billion Danish crowns ($1.31 billion), outperforming the 7.88 billion crowns expected by analysts, according to a company-compiled poll.

(With inputs from agencies.)