Vestas Sells Majority Stake in 3 Romanian Wind Projects

Vestas has entered into an agreement to sell 80% of its shares in the subsidiaries owning the 3 Romanian wind power plants at a price of EUR 136 million

Wind Energy Major, Vestas Wind Systems has announced that it has entered into an agreement to sell 80 percent of its shares in the subsidiaries owning the Romanian wind power plants Pantelimon, Pegasus, and Apollo to a non-disclosed buyer for a selling price of EUR 136 million.

The company further revealed that the closing of the transaction is expected to take place within eight to ten weeks. The transaction is subject to certain closing conditions, including approval by the Romanian Competition Council. And that the sale of projects are expected to be recognised as revenue and earnings within the fiscal year of 2019. 

Recently, the company has issued its financial results for the second quarter of the current financial year. The Danish firm reported that revenue and earnings decreased compared to last year’s second quarter while free cash flow had improved. It, however, also recorded its highest ever quarterly order intake and had a combined order backlog which was at an all-time high level.

In the second quarter of 2019, the company generated revenue of EUR 2,121 million – a decrease of 6 percent compared to the year-earlier period. However, intake of firm and unconditional wind turbine orders amounted to 5,696 MW in the second quarter of 2019.

Group President & CEO Henrik Andersen said “In the second quarter of 2019, continued high demand for wind energy helped Vestas achieve a record-high order intake of 5.7 GW and 15 percent growth in Service revenue. Based on these strong sales results, our order backlog soared by EUR 8.5 billion year-over-year to an all-time high of EUR 31 billion, again demonstrating our global leadership in a highly competitive market.”

More recently, we have reported that the National Company Law Tribunal (NCLT) on August 28, 2019, has cleared the sale of IL&FS’s seven wind energy assets to Japan’s Orix Corporation for Rs 4,800 crore.

The tribunal comprising of VP Singh and Rajesh Sharma allowed the government-appointed board’s plea to approve the sale of 51 percent stake in seven wind energy arms to Orix, which is already an equity partner in the group and owns a 49 percent stake in each of these seven operating wind power plants.