Ørsted (ORSTED) share price will be in the spotlight on Wednesday as the company publishes its financial results and holds its capital markets day. The stock was trading at DKK 377 on Tuesday, where it has been in the past few days. It has risen by over 50% from its lowest point in 2023.
Ørsted capital markets day aheadOrsted, the giant Danish wind energy company has been under pressure in the past few months amid a sustained period of high interest rates and inflation. These woes pushed it to abandon a highly subsidized wind project in New Jersey.
It is against this backdrop that Ørsted will publish its financial results and hold its capital markets day meeting on Wednesday. The company will also get a chance to share its vision about the future since inflation and high interest rates are still going on.
According to Bloomberg, some investors are putting pressure on the company to slash its dividend in a bid to preserve cash. While a dividend cut is always seen as a bad thing, these investors believe that it is a better option than selling shares to raise cash.
Besides, many investors still view Ørsted as a growth company that is in its investment stage. As such, a cut in its payouts will help it to preserve cash at a time when the industry is going through a period of turmoil.
Ørsted will also publish its quarterly and full-year results on Wednesday. Data shown in its website shows that analysts expect its full-year EBITDA will be Ørsted 25,477MDKK while its loss for the year will be DKK2.77 billion because of rising depreciation and write-off.
These analysts also expect that the company’s profit after tax will rise to DKK 8.25 billion in 2024 and DKK 9.8 billion in 2025. While these results will have an impact on the stock, the key catalyst will be the company’s guidance on how to repair its balance sheet. Besides, Ørsted has a long track record of being on budget and on time.
Ørsted share price forecast
Orsted, a company that was once well-loved by ESG investors has come under pressure in the past few months. While the stock has jumped by more than 50% from its lowest level in December, it remains 71% below its all-time high. The shares have found a major resistance at DKK 401 and is consolidating at the 50-day and 100-day Exponential Moving Averages (EMA).
The Average Directional Index (ADX) has plunged to its lowest level since August last year. Further, the Average True Range (ATR) remains under pressure. Therefore, the outlook for the Ørsted stock price is neutral but I suspect that it will be highly volatile on Wednesday. The key support and resistance levels to watch will be at DKK 300 and DKK 450.
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