TRENTON, NJ – The company behind New Jersey’s most high-profile offshore wind farm project, 0rsted, a Danish wind energy company is having serious financial problems.
On Thursday, the company’s stock hit an all-time low following a September crash. 0rsted stocks peaked in 2021 at $74. After the closing bell on Wednesday, the company’s shares traded at $16.04 after another major one-day tumble, this time 19.72.%
The renewable energy sector has recently faced setbacks in the stock market, lagging behind its fossil fuel counterparts. This trend has been reflected in the performance of prominent energy indices.
The S&P Global Clean Energy Index, an index representing major companies involved in solar, wind, and other renewable sectors, has seen a decrease of 20.2% in its value over the past sixty days. Such a decline indicates the potential for its poorest annual performance since the year 2013.
In stark contrast, the fossil fuel-dominated S&P 500 Energy Index has reported a growth of 6% during the same period.
This disparity suggests shifting investor sentiments, potentially influenced by rising interest rates and other economic variables, which appear to have adversely impacted renewable energy stocks more than their fossil fuel counterparts.