The US Bureau of Ocean Energy Management issued a stop-work order for Orsted’s Revolution Wind project, impacting its planned rights issue. The project is 80% complete and set for commission in 2026. If the order isn’t lifted, it could result in a 13% reduction in net income estimates and a 9% drop in fair value estimate.

In the worst-case scenario, Sunrise Wind would also be ordered to stop, leading to a decrease in long-term net income estimates and fair value estimate for Orsted. Despite potential setbacks, there is confidence that the fair value estimate will remain at DKK 283. Morningstar has downgraded the Capital Allocation Rating to Poor due to recent setbacks and rights issue timing.

The stop-work order on Empire Wind was lifted by the BOEM, possibly due to New York Gov. Kathy Hochul’s openness to additional gas pipeline capacity. Speculation arises about the order’s relation to the spat between the US and Denmark over Greenland. The Empire Wind case suggests political pressure tactics by the Trump administration on East Coast Democratic governors.

Read more at Morningstar: Stop-Work Order for Revolution Wind Adds Up to Perfect Storm