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Vestas shares rise on expected turbine deal with Egypt
August 22, 2016 / 4:20 PM / a year ago

Vestas shares rise on expected turbine deal with Egypt

COPENHAGEN (Reuters) - Shares in Danish wind-turbine maker Vestas (VWS.CO) rose almost 5 percent on Monday after a minister said it expects to sign a cooperation agreement with the Egyptian government worth up to 2 billion euros ($2.3 billion).

The rotor blade of a wind turbine is displayed at the "Hannover Messe" industrial trade fair in Hanover April 19, 2010. REUTERS/Christian Charisius/File Photo

The agreement could lead to as much as 2.2 gigawatt (GW) of orders, the Danish ministry of energy, utilities and climate said in a statement.

Energy Minister Lars Lilleholt is visiting Egypt on Aug. 22 and 23 to lobby for the deal.

“Vestas is continuing discussions with the authorities and we expect ...to sign the cooperation agreement, some time shortly after the trip, maybe during,” Vestas’ Chief Press Officer, Michael Zarin told Reuters.

He underlined that the agreement could amount to up to 2.2 gigawatts through multiple orders, rather than a single order.

Vestas shares closed 4.8 percent higher at 565 Danish crowns each.

Vestas erected its first turbine in Egypt in 1995 and currently provides turbines for 10 percent of Egypt’s wind power.

Its second-quarter results showed 46 percent revenue growth and an increase in operating profit before special items of 175 percent, sending its shares up 9 percent. It said orders in the second quarter totalled 1,790 MW.

Reporting by Nikolaj Skydsgaard; Editing by Ruth Pitchford

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