Spanish Iberdrola has on Wednesday denied that the energy group will also be forced to write down the value of its energy projects in the US, as Danish competitor Ørsted did late Tuesday night.

This is according to a letter from Iberdrola’s offshore business to its investors.

”In summary, Iberdrola does not need to make any impairments to its offshore business,” it states.

In the letter, the Spanish company states that it has signed 100% of all relevant agreements with the subcontractors for its projects and so far there have been no delays.

In terms of financing, Iberdrola also points out that all projects 100% owned by the company itsel are financed through the balance sheet, where 85% of the debt is at fixed interest rates. For other projects, Iberdrola has already secured full financing.

Finally, Iberdrola emphasizes that the group has a conservative approach to obtaining possible tax credits for its investments and that it does not assume that it will be able to obtain additional rebates once a final investment decision is made.

”We would also like to highlight our decision, taken in recent months, to stop certain offshore projects where the expected returns did not meet the necessary rates to commence construction of these projects.”

On Wednesday evening, Ørsted announced impairments of up to DKK 16bn (EUR 2.14bn) on the value of its US portfolio.

The first DKK 5bn has already been booked due to supply chain delays related to three offshore wind projects, Ocean Wind 1, Sunrise Wind and Revolution Wind.

In addition, Ørsted is preparing for a further impairment of DKK 6bn because it has not yet succeeded in getting the US federal authorities to approve an increase in the tax credit on the investments in Ocean Wind 1 and Sunrise Wind to 40% from 30% based on the build-up of local production.

Finally, Ørsted flagged an additional DKK 5bn in impairment charges in its third-quarter results for onshore wind and solar projects in the US because higher interest rates have made the projects less profitable.

(Translated using DeepL with additional editing by Simon Øst Vejbæk)