Vestas receives turbine orders in Balkans

ROMANIA, BULGARIA - Danish wind turbine manufacturing company Vestas Wind Systems A/S recently received an order for 75 wind turbines with a total generating capacity of 140 megawatts (MW) from wind power company Global Wind Power A/S for use in wind power projects in Bulgaria and Romania.

The order includes 50 V100 turbines, each with a capacity of 1.8 MW, and 25 V90 turbines, with capacities of 2 MW each. The supply contract includes delivery, installation and commissioning of the 75 turbines, a VestasOnline Business SCADA solution and a 5-year service agreement. Installation of the turbines will commence before 2011. The projects are expected to be completed within 2010.

According to Henrik Amby Jensen, CEO of Global Wind Power, the company has an excellent working relationship with Vestas, having installed more than 400 MW of Vestas turbines across Europe. Global Wind Power has so far implemented four wind power projects in Bulgaria during the 2008-09 period. The total capacity of the projects is 52 MW, and Vestas turbines were used in all four projects.

Global Wind Power was founded in 2000 and specializes in the administration, development, and installation of windfarms, largely for Danish investors. In 2003, the company set up German subsidiary Global Wind Power Deutschland GmbH. Global Wind Power France and Global Wind Power Bulgaria are the company's subsidiaries in France and Bulgaria. The French subsidiary was opened when the company acquired French wind power company Vent Invest earlier this year. Since 2000, Global Wind Power has installed more than 200 wind turbines, with a combined capacity of more than 350 MW.

Vestas expects 2009 earnings before interest and taxes (EBIT) margin to range between 11% and 13%, and revenues are expected to reach 7.2 billion euros (US $10.4 billion). The company's total investments in plant and equipment, property and intangible assets are expected to remain at 1 billion euros ($1.44 billion). In 2010, the company expects the EBIT margin to range between 10% and 12%, with revenues reaching 7 billion to 8 billion euros ($10.1 billion to $11.6 billion). The company's established markets are expected to bring in most of the business opportunities.

The uncertainty about future settlement schemes prevalent in the Spanish markets is likely to affect Vestas' business in Spain. On the other hand, the U.S. market is expected to grow significantly after 2010, which is expected to be reflected in the future earnings of Vestas.

Vestas expects prices and conditions in 2010 to remain unchanged in comparison to 2009. Although 2009 brought longer order-processing times, which affected the order intake, the company expects this trend to reverse in 2010.

Vestas expects that, like most years, the majority of 2010 earnings and revenues will be generated in the second half of the year. The year will see the completion of large investment programs in China and the U.S., resulting in lower investment numbers in 2010. About 50% of Vestas' total energy consumption is expected to be procured from renewable sources.

The new order from Global Wind Power will not affect the company's outlook for 2009 and 2010.