Equinor acquires 9.8 stake in Orsted for 2.5 billion
Equinor says making longterm bet on the offshore wind sector
Orsted shares rise, Equinor39;s drop

OSLOCOPENHAGEN, Oct 7 Reuters Norway39;s Equinor has bought a 9.8 stake valued at around 2.5 billion in Danish offshore wind farm developer Orsted, it said on Monday, as it seeks to build up its renewables portfolio.

Orsted shares have dropped 69 from their 2021 alltime high as the offshore wind sector has faced surging costs and technical problems with turbines.

But Equinor said its share acquisition was a longterm bet on the sector, after the Norwegian company made slow progress on reaching its ambitious renewable energy targets.

The transaction would count towards Equinor39;s renewable energy portfolio target, adding 1.7 gigawatt GW of net generation capacity out of the company39;s goal of installing 1216 GW by 2030, CEO Anders Opedal told Reuters.

At the end of 2023, the company had less than 1 GW of installed renewable capacity.

We see this as a good counter cyclical move at this point in time to get into a very attractive portfolio, Opedal said.

Orsted39;s share price rose more than 8 on the news before paring gains to stand 5.8 higher at 1300 GMT. Equinor39;s shares fell by 3.9.

An Orsted spokesperson declined to comment.

Equinor said it did not plan to raise its stake beyond 10 and would not seek board representation.

The world39;s biggest offshore wind developer was last year hit by costs and project…