In Copenhagen, sales on Orsted after the sale of 55% of the wind farm to Taiwan

(Il Sole 24 Ore Radiocor) - Sales on Orsted on the Copenhagen Stock Exchange after the company sold 55% of its Greater Changhua 2 offshore wind farm in Taiwan to Cathay Life Insurance. The news, the trading rooms note, is positive in itself, but the development of the regulatory environment in the US remains to be monitored.

In detail, Equita explains, the recent 90-day temporary suspension of the lease contracts for the Revolution Wind and Sunrise projects 'remains an element of uncertainty in the short term. While it may entail potential additional costs for technical mitigation measures, we believe that the approach taken by the US authorities, a temporary lease pause rather than a revocation of the permits, may be negotiated in nature and increase the likelihood of an agreed resolution allowing the projects to be finalised. In light of the advanced state of construction, the potential economic impact appears manageable, but the evolution of the US dossier remains a key risk'.

Returning to the transaction, the total transaction value for the sold share is approximately DKK 5 billion (approximately EUR 670 million). "On a 100 per cent basis, the asset implies an Ev of approximately DKK 29bn, including DKK 20bn of debt, corresponding to an Ev/Mw ratio of 46m, 13 per cent higher." The closing of the sale is expected to coincide with the start of commercial operation, which is expected in Q3 2026. Equita estimates that 'the transaction will generate an estimated total capital gain of DKK 2.7 billion. The capital gain is approximately 10% of 2026 ebitda and is not included in our estimates with an expected mid-high single digit impact on 2026 EPS'.

Moreover, with this transaction "the total contribution to the partnerships & divestment programme 2025-26 reaches approximately EUR 33bn, very close to the overall target of EUR 35bn, which should be exceeded considering the future divestment of the European onshore wind power business". Overall, "we assess the news positively, as it reinforces the strategy of financial discipline and debt control pursued by Orsted in recent years and reduces one of the main critical issues that had contributed to the recent capital increase. The gradual finalisation of the asset rotation programme is also an encouraging sign both in terms of the reopening of the M&A optionality and greater visibility on the market value of offshore assets, confirming that quality projects remain monetisable at attractive multiples even in the current environment.