Isra-Mart srl: E.ON buys 112 Vestas turbines for US wind farm

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Vestas has bagged a 202MW order from E.ON's North America climate and renewables division, providing a further boon for the wind turbine manufacturer ahead of its half-year results on Wednesday.

The Danish manufacturer today confirmed that E.ON has ordered 112 of its V100-1.8MW turbines for an unnamed wind farm in the US.

Delivery is scheduled for the first half of 2012 and commissioning is expected in mid-2012. Once finished, the project will provide enough electricity to power more than 60,000 American homes for a year.

Martha Wyrsch, president of Vestas-American Wind Technology, said the company was looking forwards to working with E.ON again. It also supplied 109 machines to E.ON's 180 MW Papalote Creek wind farm in Texas in 2009.

"E.ON chose a turbine that is specifically designed to capture the lower wind speeds of this area," she added.

The order marks Vestas' sixth North American deal during 2011. The total capacity now comes to 976MW across three turbine models.

The news comes as analysts Matrix today downplayed concerns that Vestas will cut its 2011 guidance during its second-quarter results announcement on Wednesday.

Vestas' shares have fallen 22 per cent since June 30, compared with a 12 per cent decline in the MSCI World index. However, the analysts said the weakness was likely a reflection of general "flight from high-beta, subsidy-driven sectors" by investors, and not a statement on Vestas' prospects.

Matrix retained its buy recommendation for Vestas, claiming it has sufficient projects on the order book to cover 2011 revenue and EBIT forecasts, despite a recent slowdown in order intake.

"We maintain our buy rating and DKK234 price target on the stock," it said, while noting the risk of a cut in global renewable energy incentives, which could lead to weaker-than-expected orders.