UPDATED: Chief executive Mads Nipper leaves company as Ørsted’s problems deepen

Ørsted’s board of directors has appointed Rasmus Errboe, current deputy chief executive and chief commercial officer as group president and chief executive. Mr Errboe will now lead the effort to turn around the company, which announced a further series of write-downs last week.

The company’s chair, Lene Skole, said “The renewable energy market has fundamentally changed since January 2021. The impacts on our business of the increasingly challenging situation in the offshore wind industry, ranging from supply chain bottlenecks, interest rate increases, to a changing regulatory landscape, mean that our focus has shifted. Therefore, the board has today agreed with Mads Nipper that it’s the right time for him to step down and the board has appointed Rasmus Errboe to take over as chief executive.”  

She continued, “Rasmus Errboe has been a valued colleague since 2012. He has a deep understanding of our business and an extensive knowledge of the energy industry. I am convinced that Rasmus is the right person to lead the company through the challenges facing the industry.”

Mr Errboe said, “I am honoured and humbled to step into the role of chief executive of a company I’ve served for the past 13 years. I will work relentlessly to create value for our customers, shareholders, and stakeholders at large. 

“Ørsted has a strong foundation with unique capabilities, and I am looking forward to taking the lead on the transformation necessary to navigate the headwinds that Ørsted and our industry currently face. Offshore wind remains crucial for the green transition, and we’re deeply committed to pursuing our vision of a world that runs entirely on green energy.”

Ms Skole noted that under Mr Nipper, the company had increased Ørsted’s installed renewable capacity from 11.3 GW in 2021 to 18.2 GW in 2025 while navigating a portfolio of legacy projects and consistently delivering EBITDA guidance.”

Mr Nipper said, “Leading Ørsted through four challenging yet rewarding years has been a great privilege. Despite the obstacles we’ve faced, we’ve achieved many significant milestones, and I am immensely proud of our colleagues’ efforts and dedication. I extend my gratitude to everyone who has supported and believed in our vision, and I wish Rasmus and the team all the best of luck.”

On 20 January 2025, Ørsted announced impairments relating to US interest rate increases, the value of seabed leases in the US and execution of the Sunrise Wind offshore wind project. The impairments were the latest in a series of such developments at the company in the last 18 months. 

Morningstar senior equity analyst Tancrede Fulop said, “The chairman of the board of directors vindicated Mr Nipper’s departure by the fundamental changes in the renewables space, including supply chain bottlenecks and interest rate increases. Those changes certainly played a key role in the 80% drop in Ørsted shares since January 2021.

“There were also some missteps in which Mr Nipper was involved, including Ørsted’s attempt to reassure the market about US offshore wind projects in June 2023, followed by large impairments and cancellation costs in November. 

“Other impairments were driven by additional costs and delays on Sunrise Wind, despite previous assurances. This impairment may have been the last straw for Nipper, though he wasn’t responsible for the US offshore wind bets, as only Ocean Wind 2 was awarded during his tenure. 

“The Ocean Wind 1 project, that was cancelled and led to the highest impairment, was awarded under the tenure of his predecessor, Henrik Poulsen. The absence of indexation of the guaranteed electricity price turned out to be disastrous with high inflation.”

The company will publish its annual report for 2024 on 6 February 2025.