Let’s see how Vestas stock is doing?

Vestas Wind Systems A/S, based in Denmark, the world’s #1 turbine manufacturer, has fallen on hard times.  In the past 12 months, its stock has dropped by 81% from USD 8.44 to USD 1.64.

Following are some excerpts from a report published by Bloomberg News (see full report here).

“The company is clearly in severe distress,” according to Martin Prozesky, an analyst at Sanford C. Bernstein & Co, said.

“Wind turbine developers are having trouble raising funds to finance projects from banks that traditionally underwrite the biggest projects,” Heinz Steffen, an analyst at Fairesearch GmbH& Co, said today by phone from Kronberg.

“The whole industry is doing badly,” he said. Banks are no longer willing to finance large projects constrained by their own financial issues while delays in grid connection and legal reasons in promising offshore wind markets inhibit growth, he said. “Also, the market is in overcapacity and there is price pressure from China.”

The only good news for wind turbine manufacturers is that the Ontario government continues to push ahead, fighting its way up the down escalator.

 

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Posted on July 4, 2012, in Provincial energy policy, Wind turbines. Bookmark the permalink. Leave a comment.

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