Credit: Iberdrola (file image)
Spain’s renewable energy giant Iberdrola has told investors it does not need to book any impairments in its offshore business, a document seen by Reuters on Wednesday showed.
The document is designed to reassure investors after Denmark’s Orsted, the world’s largest offshore wind farm developer, said earlier on Wednesday it could face U.S. impairments of around $2.3 billion as a result of supply chain problems, soaring interest rates, and a lack of new tax credits. Shares in the Danish firm plunged after the news.
While Orsted shed around a quarter of its value in Wednesday’s trade, Iberdrola fell only 1.8%.
An Iberdrola spokesperson confirmed the document was sent to investors.
In it, Iberdrola said it had already secured all relevant supplier contracts for its upcoming projects and so far there have been no delays.
It also said the company’s final investment decisions (FIDs) on whether a project should go ahead were taken conservatively, meaning any risk should be minimal.
Iberdrola last month agreed to pay $48 million to cancel a long-term agreement to sell energy from a planned wind farm off the cost of Massachusetts in the United States.
The decision was “driven by the very significant increase in cost since the project was auctioned,” Iberdrola Executive Chairman Ignacio Sanchez Galan said in July during a call with analysts to present the second-quarter results.
(Reuters – Reporting by Pietro Lombardi and Andres Gonzalez, editing by Andrei Khalip, Inti Landauro and Barbara Lewis)