Equinor Backs Ørsted's Rights Issue for Future Growth
Equinor's Strategic Support for Ørsted's Rights Issue
Equinor (OSE, NYSE: EQNR) has closely examined the proposal from the Board of Directors of Ørsted A/S regarding a Rights Issue aimed at giving pre-emptive rights to existing shareholders. This initiative was announced recently, highlighting Ørsted's approach to navigate current industry challenges.
In light of ongoing discussions with Ørsted, Equinor has made the decision to fully support this proposal, which aims to reinforce Ørsted’s financial position. As a dedicated industrial shareholder, Equinor plans to participate actively in the Rights Issue, ensuring it maintains its significant 10% ownership stake in Ørsted.
Commitment to Strengthening Relationships
Equinor’s backing of the Rights Issue signals its confidence in Ørsted’s core business and showcases the potential of offshore wind energy within the broader global energy landscape. The collaboration between these two companies is expected to yield positive outcomes for shareholders amidst the developing energy sector.
Given the ongoing challenges within the offshore wind sector, there are likely to be shifts such as consolidation and the emergence of innovative business models. Equinor sees this as an opportunity for enhanced collaboration with Ørsted, which is anticipated to produce mutual benefits for shareholders of both companies.
Continued Engagement in Offshore Wind Developments
Equinor remains vigilant regarding the latest trends and changes in the offshore wind industry, especially in the US market. As circumstances evolve, the company intends to keep an open line of communication with Ørsted to optimize strategies moving forward.
Once the final terms of the Rights Issue are established, Equinor is prepared to invest in new shares amounting to approximately DKK 6 billion, which is roughly equivalent to USD 939 million based on the current exchange rate.
Equinor's participation in this Rights Issue aligns with its financial strategy and confirms its commitment to maintaining competitive capital distributions amongst its shareholders. This strategic investment reflects a strong belief in the future of Ørsted and the offshore wind industry at large.
Equinor's Offshore Wind Portfolio and Future Projects
At present, Equinor’s offshore wind portfolio includes a net installed capacity of 0.4 GW, with an additional 3.0 GW currently under development. The primary focus remains on finishing ongoing projects located in North-West Europe and the Empire Wind 1 initiative in the US. These projects represent significant strides in Equinor’s commitment to advancing renewable energy solutions.
Contact Information for Further Inquiries
For Investor Relations:
Bård Glad Pedersen, senior vice president Investor Relations,
+47 918 01 791
For Media Relations:
Sissel Rinde, vice president Media Relations,
+47 412 60 584
Frequently Asked Questions
What is the main purpose of Ørsted's Rights Issue?
Ørsted's Rights Issue aims to strengthen its balance sheet amidst various industry challenges, allowing for continued growth and investment in offshore wind energy.
How will Equinor's participation affect its ownership in Ørsted?
Equinor intends to participate in the Rights Issue to maintain its 10% ownership stake in Ørsted, reinforcing its commitment as a long-term industrial shareholder.
What is the significance of Equinor's support for Ørsted?
Equinor’s support indicates confidence in Ørsted’s business and demonstrates a strategic partnership that can benefit shareholders of both companies in the evolving energy landscape.
How much is Equinor planning to invest in the Rights Issue?
Equinor plans to invest up to DKK 6 billion (approximately USD 939 million) under the terms of the Rights Issue.
What are Equinor's current projects in offshore wind?
Equinor's offshore wind portfolio includes 0.4 GW of net installed capacity and 3.0 GW under development, with a strong focus on completing key projects in North-West Europe and Empire Wind 1 in the U.S.
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