Wind farm manufacturer Orsted has experienced an 8.5% drop in its share price following the assassination attempt on former President Donald Trump. The decline reflects market speculation that Trump's potential re-election could negatively impact the renewable energy sector.

Market analysts suggest that Trump's pledge to ban offshore wind projects on his first day in office is driving these market movements. Other wind developers, including American-based Nextera Energy and Danish manufacturer Vestas, also saw significant drops in their stock prices.

Tancrede Fulop, a senior equity analyst at Morningstar, noted that offshore wind developers like Orsted faced delays during Trump's previous term due to complications with the Bureau of Ocean Energy Management (BOEM). These delays, along with rising costs and interest rates, resulted in project impairments and cancellations in 2023.

Despite these concerns, some analysts believe the market may be overreacting. Jacob Pedersen, head of equity research at Sydbank, stated that existing onshore wind projects, already approved by Congress, are unlikely to be impacted by Trump's executive orders. Orsted's ongoing projects, totaling 1.6 gigawatts, are secure, having received approval last year.

Additionally, potential withdrawals from current bids in states like Massachusetts, Connecticut, and Rhode Island would have minimal financial impact on Orsted, according to Fulop.

Source: cityam.com