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Danish renewable energy giant Orsted has announced the departure of its chief executive Mads Nipper following a catastrophic 80% decline in the company’s share value during his leadership tenure. The state-backed enterprise has appointed deputy chief Rasmus Errboe as his successor, marking a crucial leadership transition ahead of next week’s annual results presentation.
The timing of Nipper’s appointment in early 2021 coincided with Orsted’s peak market valuation, but the company’s fortunes have since spiralled downward. The offshore wind sector has grappled with severe supply chain inflation and significant setbacks in the emerging US market, leading to multi-billion dollar write-downs for the organisation.
Board chairwoman Lene Skole emphasised the dramatic shift in market dynamics since Nipper’s appointment, citing supply chain disruptions, rising interest rates, and regulatory uncertainties as primary challenges reshaping the company’s strategic priorities.
Citi analyst Jenny Ping suggests the incoming CEO might initiate a comprehensive strategic review, with particular attention required for the troubled US offshore operations. The possibility of stabilising the balance sheet without liquidating premium assets could potentially trigger a significant share price recovery.
Orsted, which rebranded from its original identity as Dong Energy in 2017, maintains a dominant position in British waters. Its flagship projects include the record-breaking Hornsea One and Two installations, with Hornsea Three under construction and poised to claim the title of world’s largest offshore wind farm upon completion.
The new chief executive brings considerable experience to the role, having joined Orsted in 2012. Errboe’s previous positions include chief commercial officer, European markets regional head, and global offshore business CFO. He played a pivotal role in the company’s 2016 stock market debut and subsequent divestment of its hydrocarbon operations.
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