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Danish wind turbine manufacturer Vestas expected to sign $2.3bn Egypt agreement

Posted: August 24, 2016 at 7:10 pm   /   by   /   comments (0)

VestasShares in Danish wind-turbine maker Vestas 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 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.

(Source: Reuters)

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