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Orsted’s transition results in shareholder wealth, but can it be replicated?

September 17, 2021

The Hindu Business Line:

The transition of Orsted, the once Danish state-owned utility, from being one of the most coal-intensive utilities in Europe to a global leader in offshore wind energy provides interesting insights and learning for Indian utilities.

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) charts Orsted’s energy transition journey. “During Orsted’s transition journey of more than a decade, it has created immense shareholder wealth, as its market capitalisation zoomed by 314 per cent since its listing in 2016,” said the report’s author, IEEFA Energy Finance Analyst, Shantanu Srivastava.

“This feat can be attributed to its successfully planned transition strategy, along with transparent sustainability-related disclosures. This is an example where an enterprise has been able to fulfil its goal of dramatic shareholder wealth creation while radically transforming its business model, something which many energy companies around the world are trying to emulate,” he said.

More:  ‘Orsted’s transition provides key insights for India’s energy firms’

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