Orsted CEO Nipper Steps Down Amid Industry Headwinds
COPENHAGEN - Ørsted has announced the departure of Chief Executive Mads Nipper, with company insider Rasmus Errboe taking the reins. The move comes as the renewable energy giant grapples with an 83% decline in its share price since its 2021 peak.
The company's challenges reflect the broader malaise in the global wind power industry, where rising costs, project delays, and supply chain constraints have dampened investor optimism.
"The increasingly challenging situation in the offshore wind industry... has shifted our focus," said Orsted Chair Lene Skole. "As a result, the board has agreed with Mads Nipper that it's time for him to step down."
Ørsted, formerly an oil and gas company, has faced significant write-downs in recent years due to rising costs and delays. Once a darling of green investors, its market value has plummeted from $93.9 billion in January 2021 to $15.1 billion as of Thursday's close, according to LSEG data.
Errboe, who currently serves as Deputy CEO and Chief Commercial Officer, will assume the top role on February 1st. He has previously held positions as interim finance chief and head of Orsted's Europe region. His appointment follows the implementation of a new business plan aimed at trimming investment and capacity targets.
Despite its European roots, Ørsted has expanded into the U.S. offshore wind market. However, a lack of established supply chains has led to several impairment charges. Further complicating its U.S. ambitions, President Donald Trump suspended federal offshore wind leasing pending a review.