Ørsted, the offshore wind project developer, has announced a significant change in its upcoming ventures. The Danish company unveiled its decision to slash new project constructions, sell assets, and put a pause on dividend payments until at least 2025. This strategic move comes in the wake of substantial writedowns on delayed projects in the U.S.

The company disclosed that it aims to reduce fixed costs by 1 billion crowns (~$144 million) by 2026, which will involve initiating 600-800 job cuts worldwide. Approximately 250 roles are anticipated to be eliminated in the coming months.

Furthermore, Ørsted (OTCPK:DNNGY) declared a reduction in its target for green power project construction to 35-38 GW by 2030, down from the previous goal of 50 GW. It also plans to exit some emerging offshore wind markets while narrowing the focus of its U.S. offshore portfolio to the northeast Atlantic.

In addition to outlining these measures, the company reported Q4 EBITDA of DKK8.62 billion, surpassing the DKK6.08 billion analyst consensus, and provided guidance for FY 2024 EBITDA of DKK23 billion to DKK26 billion, before rising to DKK39 billion to DKK43 billion in 2030.

Ørsted (OTCPK:DNNGY) is on a quest to reduce costs and recuperate from the whopping DKK28.4 billion (~$4.1 billion) loss incurred last year, largely due to escalating expenses for its planned wind farms off the U.S. coast.

Emphasizing a more cautious approach, CEO Mads Nipper stated that the company will not pursue project auctions with extended delays between the awarding of a government contract and the project delivery, unless there are inflation indexing stipulations.