Denmark

Orsted’s losing US bets need rethink of UK plans

1 Nov 2023

The Danish wind giant lost a fifth of its value after a surprising $4 bln impairment in the States. That erases most of the capex spent there. Yet it still wants to invest in the world’s biggest economy to meet its lofty targets, a risky gamble that requires restraint in Britain.

Macquarie’s Norse saga sends telco breakup warning

17 Oct 2023

The Australian firm is mulling options for Danish operator TDC. A lengthy plan to separate its network from its consumer business left both units burdened by debt amid intense competition, which could deter buyers. Others looking to split, like Telecom Italia, may think twice.

Obesity revolution gorges on dialysis maker

11 Oct 2023

Shares of Fresenius Medical Care fell 20% after a trial showed a Novo Nordisk drug reduced the risk of kidney failure. It highlights how fast-growing weight-loss treatments will pummel other areas of medicine. The blow may push Fresenius and its parent into corporate surgery.

Anti-obesity drugs can shrink more than patients

20 Sep 2023

Wegovy and other weight-loss treatments could transform public health. That may hurt medical, food and fitness companies, while potentially affecting activities from drinking to gambling. This shrinking revenue demands a new investment concept: total unaddressable markets.

Novo Nordisk heft worsens Danish surplus disease

8 Sep 2023

Sales of the pharma group equal 8% of Danish GDP and its $440 bln market value is Europe’s highest. Hosting corporate behemoths can be a problem for small countries, as shown by Finland’s Nokia. But Copenhagen can use the drug bounty to spend more on the rest of the economy.

The obesity drug boom is just getting started

5 Sep 2023

Over 1 bln people are obese, the WHO reckons. Denmark’s Novo Nordisk is ahead of the pharma pack with its Wegovy weight-loss drug. In this Exchange podcast, recorded in August as a Reuters Newsmaker, CEO Lars Jorgensen says the market will be big enough for other players too.

Orsted’s issues fan way beyond the United States

30 Aug 2023

Denmark’s $27 bln wind giant saw shares plunge over 20% after it said it may need to write down $2 bln of US projects. Yet Orsted’s supply chain and subsidy problems may also upend progress in the UK. And by recently implying all was well, management has lost credibility.

Novo Nordisk’s chunky valuation risks crash diet

4 May 2023

The $274 bln pharma group trades at a big premium to peers. Investors are buoyed by hopes Novo can take a large share of an obesity market that could be worth $100 bln by 2031. But competition and questions about its drug’s effectiveness could slim down its valuation.

Deutsche Boerse data pivot comes at a price

27 Apr 2023

Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.

Orsted increasingly merits its investor blowback

20 Jan 2023

The $38 bln Danish wind farm group flagged lower-than-expected 2023 targets as its key offshore arm struggled. Shareholders always granted Orsted a premium valuation, due to growth expected from new projects. Construction delays and rising rates are putting that in question.

Danish $22 bln enzyme M&A is costly bet on growth

12 Dec 2022

Novozymes will absorb smaller domestic rival Chr. Hansen. The 38% premium dwarfs expected synergies from the deal. And Novo Holdings, the biggest shareholder in both groups, will retain majority voting rights. Novozymes investors look to be paying too much for future growth.

Big Pharma will muscle in on obesity gold rush

28 Nov 2022

Novo Nordisk and Eli Lilly’s weight loss drugs are swelling their valuations, and give them a lead in a potentially $50 bln market. Yet rivals like Pfizer are not far behind, and others can snap up biotechs like Altimmune. An increasingly crowded sector may lead to lower returns.

Maersk’s cash machine is economic storm warning

2 Aug 2022

The Danish shipping giant reckons sky-high freight rates will help it land $37 bln of EBITDA this year. The trouble is its $50 bln enterprise value gives little credit to what lies over the horizon. The likely explanation is a sharp collapse in container demand due to recession.

Windmill makers’ vicious cost cycle has an ending

5 May 2022

Denmark’s Vestas and rival Siemens Gamesa have failed to turn booming demand for wind farms into higher earnings. Increased prices to offset soaring raw material costs will take several years to kick in. But now wind power is cheaper than fossil fuels, price pressures are easing.

Rwanda’s economic refit gets net-positive free ads

22 Apr 2022

Britain and Denmark want to outsource asylum processing to the East African nation infamous for its 1994 genocide. Regardless of their motives, it chimes with leader Paul Kagame’s plan to build an offshore services hub. Handling refugees looks mercenary but supports his goal.

Wind turbine makers are victims of own success

3 Nov 2021

Soaring demand for renewable energy has inflated Vestas and Siemens Gamesa into multibillion-dollar firms. Yet the pair are struggling to turn a profit because of steep rises in raw materials costs. Passing those on will end wind power’s long-term trend of falling prices.

Road to COP: Denmark’s green giant

21 Sep 2021

Orsted is one of the most highly valued players in the global energy transition. Chief Executive Mads Nipper’s main job is to ensure things stay that way as demand for its wind power intensifies. Ahead of Glasgow’s critical COP26 conference in November, he chatted to George Hay.

Maersk’s green ships have first-mover disadvantage

26 Aug 2021

The $53 bln container giant is buying eight vessels powered by carbon-neutral methanol. Maersk gets a green halo, and customers could shoulder its increase in costs. The catch is that clean fuel alternatives currently in development are likely to be cheaper, and greener.

Novo Nordisk diet drug may finally be the big one

4 Aug 2021

Obesity costs America over $1 trln a year, but therapies have proved ineffective or worse. The $215 bln Danish group’s new injection works, and a fast start means annual sales may one day near $10 bln. If U.S. insurers play along, it could be one of the best-selling drugs ever.

Danish hydrogen adds hygge to market green malaise

7 Jun 2021

Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.