By Nerijus Adomaitis
OSLO (Reuters) -Danish offshore wind giant Orsted said on Wednesday that it had no plans to take over the renewables business of Equinor, its second biggest shareholder, which has proposed closer ties between the companies.
Norwegian oil, gas and renewables group Equinor, which took a 10% stake in Orsted last year and injected close to $1 billion in an October share issue, said last week the offshore wind industry needed consolidation.
Orsted’s shares have plummeted 85% from their 2021 peak, hit by soaring costs and supply chain disruptions, as well as challenges in the United States where President Donald Trump sought to halt ongoing developments and suspended new licensing.
ORSTED POURS COLD WATER ON TIE-UP IDEA
Some analysts have said Equinor would benefit from spinning off its own renewables unit and merging it with Orsted, and the Norwegian group’s chairman in September told Reuters the board had an open mind about what its ownership could lead to.
But Orsted’s top executives on Wednesday poured cold water on the idea of a tie-up.
“We have no such plans,” Chief Financial Officer Trond Westlie told a call with analysts.
Orsted CEO Rasmus Errboe said the company appreciated the continuing support from its second-largest shareholder, but was focusing on its own business.
“I’ve also noted the comments (from Equinor) that you alluded to … Our focus, my focus, is to deliver on our plans, on our strategy, quarter by quarter,” he said.
“I’m confident that we in Orsted have a very suited business model for offshore wind,” Errboe added.
Equinor in September reiterated that it would remain a long-term investor in Orsted and said it planned to nominate a candidate to the Danish company’s board.
Orsted’s biggest shareholder is the government of Denmark, which holds a 50% stake in the company.
(Reporting by Nerijus Adomaitis; Editing by Terje Solsvik and Conor Humphries)
