Vestas Wind books highest order intake since 2010

Reuters News
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Posted: Dec 30, 2015 5:05 AM

COPENHAGEN (Reuters) - Vestas Wind Systems has booked the highest order intake in five years in 2015, and a recent five-year extension to a U.S. tax break looks set to increase demand in a market that accounts for around one third of its business, analysts said.

The Danish company has booked orders for 7,816 megawatts (MW) of capacity year-to-date, valued at around 7.3 billion euros ($7.99 billion) according to Reuters calculations based on figures on the company's website.

It would have received a number of smaller orders in the fourth quarter, which will be announced in its quarterly earnings report in February.

U.S. Congress voted on Dec. 18 in favor of a bill to extend a tax credit for wind farm developers in the United States.

"It will help to increase demand for wind turbines in the U.S. market as the uncertainty of the extension is removed," Handelsbanken Markets wrote in a note to clients.

Earlier in December more than 190 nations signed a climate agreement in Paris, a measure for transforming the world's fossil fuel-driven economy within decades into renewable energy sources such as wind.

"Vestas has the potential to increase order intake in other markets as a result of the climate deal," Handelsbanken wrote.

The Danish wind turbine maker competes with Germany's Siemens, U.S. firm General Electric and China's Goldwind

In 2014 Vestas booked orders for a capacity of 6,544 MW, 5,964 MW in 2013 and 3,738 MW in 2012.

Three years ago Vestas reported a huge loss and was unable to meet its financial commitments.

Chief Executive Ditlev Engel was ousted after a string of profit warnings and replaced by Anders Runevad who sought to make its turbines more competitive on price.

Shares in Vestas have more than doubled in 2015, while the main Copenhagen index is up 29 percent.

(Reporting by Ole Mikkelsen, editing by Louise Heavens)