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Vestas Q2 Order Intake is Highest Since 2010

Posted by July 1, 2015

Danish wind turbine maker Vestas Wind Systems (VWS.F) has reported its strongest quarter for five years in terms of order intake.

The company secured orders totalling 2,467 megawatt during the second quarter. On Tuesday alone, the last day of the quarter, it announced orders of 570 MW.

Analysts said Vestas had benefited from a wide range of products and a strong position in the U.S. market, the world's biggest.

They also said it had improved its position in the offshore market as a result of it joint venture with Mitsubishi Heavy Industries (MHVYF). The venture has developed the world's largest wind turbine, with a swept area that - at over 21 square-metres - is bigger than the London Eye Ferris wheel.

Jyske Bank (JYS1.F) analyst Janne Vincent Kjaer said Vestas had captured 37 percent of the orders announced in the industry over the last 12 months, its highest-ever share.

"Our review of orders announced in the industry confirms to us that Vestas is gaining market share," she added.

Vestas compete with companies such as Germany's Siemens (SIEMENS.NS) , U.S. firm General Electric and China's Goldwind.

The company ousted its Chief Executive Ditlev Engel two years ago after a string of profit warnings. He was replaced by Anders Runevad who has cut costs and made its turbines more price competitive. Last year, Vestas reported its first annual profit since 2010.

Nordea Markets analyst Patrik Setterberg said there was a good chance that Vestas' order intake would remain strong in coming quarters.

"Several large projects are just awaiting final details before they become firm and unconditional orders for Vestas," Setterberg wrote in a note to clients on Wednesday.

Shares in Vestas were up 4.1 percent at 1102 GMT while the Copenhagen main index was up 1.5 percent. The shares are up more than 50 percent since the start of the year.

Reporting by Ole Mikkelsen

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