One of the world’s largest wind energy manufacturers, Vestas Wind, reported healthy second quarter earnings for 2014, and is now waiting on DONG Energy’s final investment in a UK offshore wind project which would require the Vestas 8 MW turbines.
Vestas reported a strong turnaround from their second quarter earnings a year previously with a 13% increase to €1.34 billion. The company reported a net profit in the second quarter of €94 million ($125 million), compared to a €62 loss a year earlier
“With another solid quarter showing improvements in most areas, we remain focused on executing on our strategy, Profitable Growth for Vestas,” said Group President & CEO Anders Runevad. “Based on the improved cost base and the expected delivery plan for the second half of the year, we raise our 2014 EBIT margin target to minimum 6 per cent.”
The news came just a day before Vestas confirmed that they had entered into a conditional agreement with DONG Energy for the upcoming Burbo Bank Extension in Liverpool Bay off northwest England.
Vestas would provide 32 8 MW V164 turbines for the extension project, and are awaiting DONG Energy’s commitment to the project before the deal is sealed.
“Larger and more cost-efficient wind turbines are key elements in the realization of Dong Energy’s strategy towards reducing the cost of electricity from offshore wind,” said Samuel Leupold via Bloomberg, an executive vice president at Dong. “Competition among the offshore wind turbine manufacturers will increase.”
Offshore construction of the Extension is expected to begin in 2016, and upon completion it is expected the project will be able to provide electricity for more than 230,000 UK homes.
The move will help Vestas continue making inroads into a Siemens AG-dominated market — the company walking away with 83% of European sales in 2013. And as can be seen in their second quarter earnings, the move will continue to see Vestas turning around their 2013 slump.
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