Ørsted, the Danish energy giant, has reported a net loss for the third quarter of 2025, marking a significant shift from the previous year’s profits. The company posted a loss of DKK1.7 billion (€227 million), a stark contrast to the DKK5.2 billion profit recorded in the same period of 2024. This downturn was primarily driven by lower earnings from offshore wind, a sector that has been the backbone of Ørsted’s growth strategy.
Earnings from offshore sites amounted to DKK 3.6 billion, a decrease of DKK 0.3 billion compared to Q3 2024. The decline was attributed to lower wind speeds, a reduction in subsidy levels for older wind farms, and the absence of high earnings from power trading activities that were present in Q3 2024. However, these factors were partly offset by the ramp-up of generation from Gode Wind 3, compensations for grid delays at Borkum Riffgrund 3, and improved availability in Q3 2025.
The company’s EBITDA, excluding new partnerships and cancellation fees, fell to DKK3.1 billion from DKK4.4 billion year on year. Total EBITDA was DKK3.1 billion versus DKK9.5 billion in the prior-year period, reflecting high cancellation income in 2024. Gross investments rose to DKK15 billion from DKK9.8 billion, with Ørsted recording negative free cash flow of DKK16.2 billion against a negative DKK11.3 billion in Q3 2024.
Despite the financial setbacks, Rasmus Errboe, Group President and CEO of Ørsted, expressed satisfaction with the progress across the company’s construction portfolio and operational performance. “Despite lower wind speeds in the quarter, we have increased the generation by 8% compared to Q3 2024 through a combination of higher availability rates for our offshore portfolio and ramping up generation from Gode Wind 3 in Germany,” he stated.
Errboe also highlighted the company’s strengthened financial robustness with the completion of the rights issue and the agreement to divest a 50% stake in the Hornsea 3 project in the UK. “I’m pleased with the strong support from our shareholders. I see this as a strong indication that our investors see significant potential in Ørsted and in the offshore wind industry,” he added.
The news of Ørsted’s financial performance raises questions about the future of the offshore wind sector. While the company’s long-term strategy remains focused on offshore wind, the short-term challenges highlighted in the Q3 results suggest that the sector may face significant headwinds. The impact of lower wind speeds, subsidy reductions, and grid delays could potentially slow down the pace of offshore wind development, affecting not only Ørsted but also the broader energy transition agenda.
Moreover, the increased investment in offshore wind projects, coupled with negative free cash flow, underscores the financial strain that energy companies may face in their pursuit of renewable energy goals. This could lead to a more cautious approach to investments, potentially slowing down the pace of the energy transition.
However, the strong support from shareholders and the company’s focus on delivering its business plan indicate that Ørsted remains committed to its vision of becoming a global leader in offshore wind. The company’s ability to navigate these challenges and maintain its leadership position in the sector will be crucial in shaping the future of offshore wind development.