Orsted to start selling stake in UK wind farm, Bloomberg News reports
Adds background and details throughout
Nov 25 (Reuters) -Denmark's Orsted ORSTED.CO has launched the sale of a stake in one of the world's biggest wind farms planned off the United Kingdom's coast, Bloomberg News reported on Monday, citing people familiar with the matter.
The Danish utility aims to sell about 50% of its Hornsea 3 project but it's not clear what price it is seeking for the stake sale, the report added.
A spokesperson for Orsted told Reuters that the company had previously said in February that it planned to sell down the stake in Hornsea 3 during 2025.
In October, the company sold a minority stake in four of its operational British offshore wind farms to Brookfield for 1.75 billion pounds ($2.28 billion).
The transaction, which included stakes in the Hornsea 1, Hornsea 2, Walney Extension and Burbo Bank Extension projects, is expected to close by the end of this year.
Battling to restore investor confidence, Orsted in February trimmed its investment and capacity targets and paused dividend payouts as part of a major review.
Offshore wind developers have seen their profits shrink in recent years due to rising raw material costs, high interest rates, inadequate grid connections, supply chain bottlenecks, and Chinese competition, prompting companies like BP and Equinor to scale back their ambitions.
Orsted's group operating profit fell 14% to 4.44 billion crowns in the third quarter. Profits were helped by a reversal of some of the losses it booked last year in the United States.
Reporting by Urvi Dugar and Chandni Shah; Editing by Shailesh Kuber
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