After Wind Farm Cancellation: Ørsted Terminates Contract with Cadeler – Compensation Enables Forecast Upgrade

Copenhagen, Denmark – Danish offshore wind company Cadeler has received notice of termination of a long-term contract by Ørsted.

The agreement, originally signed in April 2024 with the Danish energy group, covered the deployment of one of Cadeler’s A-class wind installation vessels from the first quarter of 2027 through the end of 2030. The termination is related to Ørsted’s May 2025 announcement to discontinue development of the 2.4 GW Hornsea 4 offshore wind project in the UK in its current form and to cease work on the site. Ørsted cited increased supply chain costs, higher interest rates, and elevated execution risk as factors that had reduced the project’s expected value creation.

As a result of the termination, Cadeler is entitled to a contractually agreed compensation payment. The company is currently evaluating alternative deployment options for the vessel and is in discussions with potential project partners. Cadeler does not expect any negative impact on its long-term financial outlook as a result of the termination.

On the contrary, the compensation will positively affect the company’s 2025 financial forecast. Expected annual revenue has been raised from the previous range of EUR 485–525 million to EUR 588–628 million. EBITDA is also expected to increase significantly, now forecast between EUR 381–421 million (previously EUR 278–318 million).

Cadeler is a global leader in offshore wind installation, operations, and maintenance. According to the company, it owns and operates the largest fleet of jack-up installation vessels in the industry. Cadeler is listed on the New York Stock Exchange and the Oslo Stock Exchange.

Source: IWR Online, 02 Jul 2025