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Ørsted chief vows to fight ‘with everything I’ve got’ to revive fortunes

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Ørsted chief vows to fight ‘with everything I’ve got’ to revive fortunes

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The chief executive of Ørsted has vowed to “fight with everything I’ve got” to restore investor confidence in the world’s largest offshore wind developer after its decision to walk away from two key US projects triggered multibillion-dollar impairments.

Speaking to the Financial Times days after the company decided to cut up to 800 jobs, suspend its dividend and slash growth targets for renewables, Mads Nipper said he took “full accountability” for the Danish group’s woes. It was “for the board to decide” whether he was the right person to lead the company, he added.

The company’s former finance chief, Daniel Lerup, and chief operating officer Richard Hunter stepped down in November with immediate effect, while chair Thomas Thune Andersen will step down in March after almost a decade in the job, the company added last week.

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The group recorded DKr28.4bn ($4bn) of impairments in November after saying it was stopping work on two projects off the New Jersey coast of the US.

Nipper, who joined Ørsted as chief executive at the start of 2021, said that while there had been “tough external circumstances”, the company had under his leadership made “some decisions which at the time seemed right to continue the developments, but with the knowledge we have now, were wrong”.

He added: “So I take full accountability that we have ended in this situation [ . . . ] Most importantly is what are we learning from it . . . we are taking appropriate actions to ensure we won’t get into a situation like that again.”

Ørsted’s problems come as rising interest rates and supply chain strains have pushed up costs across the offshore wind industry, threatening to slow down growth just as countries around the world set more stringent targets to decarbonise their economies.

Ørsted’s shares, listed in Copenhagen, have fallen more than 70 per cent since peaking at the start of 2021. They closed up 2.3 per cent to DKr398 on Monday, valuing the company, which is 50.1 per cent owned by the Danish state, at roughly DKr167bn.

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Rising interest rates have a stark impact on offshore wind projects, which typically have high upfront costs.

Nipper warned that the sector’s growth would slow down “dramatically” unless the price that developers are paid for their electricity reflects the higher costs. Authorities in the US and the UK have recently increased the rates they are prepared to pay to support forthcoming projects.

“The fuel of renewable energy is capital,” Nipper said. “Financing £8.5bn — 25 basis points matter and 100 matter a whole lot more. 

“For a company like ours — if interest rates go up by 3 per cent, that more than eliminates all the profit of a huge investment.”

Ørsted last week also said it would exit offshore markets in Norway, Spain and Portugal, and slow down its development of floating offshore wind.  

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That emerging technology involves positioning turbines on platforms rather than fixing them individually to the seabed, so they can be moved further out to sea where they can harness the greater wind speeds. 

Nipper said he now believed floating wind would “advance slower than anticipated” due to high costs and technological challenges. “We still don’t have mature floating platform concepts,” he said. “I think there are quite a few indicators that, at least at scale, floating will be on a somewhat later time[frame].”

He said the company had “generally had positive feedback” on its new strategy adding, “by far the majority of investors seem to think it is the right one”. 

But he continued: “We are also very aware that what matters is not the plan, it is the execution of the plan.”

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

Trump says US stockpiles mean “wars can be fought ‘forever’”

In a late night post on Truth Social, Donald Trump said that the US munitions stockpiles “at the medium and upper medium grade, never been higher or better”.

He added that the US has a “virtually unlimited supply of these weapons”, meaning that “wars can be fought ‘forever’”.

This comes after Trump said that the US-Israel war on Iran could go beyond the four-five weeks that the administration initially predicted. The president also did not rule out the possibility of US boots on the ground in Iran during an interview with the New York Post on Monday.

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“I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!!,” he wrote.

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Key events

During his opening remarks, Senate judicicary committee chairman, Chuck Grassley, blamed Democrats for the ongoing shutdown Department of Homeland Security (DHS) but highlighted four agencies: the Secret Service, Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

Democrats are demanding tighter guardrails for federal immigration enforcement, but a sweeping tax bill signed into law last year conferred $75bn for Immigration and Customs Enforcement (ICE), which means the agency is still functional amid the wider department shuttering.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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