Vestas has signed a framework agreement with EDF Energies Nouvelles (EDF EN), which will acquire a minimum of 50% of its European onshore wind installations and 30% of its US onshore wind installations from the Denmark-based wind turbine supplier.
The agreement, which covers deliveries for the three year period between 2012 and 2014, also involves EDF EN’s European affiliates and its US subsidiary enXco. In addition, there is scope for maintenance contracts.
There are already firm and unconditional orders for 180MW of capacity. According to Commerzbank, 100MW of this initial 180MW was already in Vestas’ order book. EDF EN has said that orders from the framework agreement could potentially exceed 1GW, and Vestas is even more optimistic.
Since the EDF EN deal Vestas has announced further orders in the Americas and Europe, which has come after a period of slower order intake.
Even so, Commerzbank believes that the second quarter figures due to be published on 17 August will be weak and believes that the current 2011 guidance of revenue of €7 billion and operating margin of 7% will be lowered. Commerzbank is already forecasting 2011 and 2012 earnings per share that are well below the current consensus expectations.