Signs of wind sector recovery fuel stock rally - IWR

Aug 15, 2013 - Shares in European wind turbine producers are gradually advancing on the stock exchange as the companies are improving their performance amid signs of market recovery, German renewable energy institute IWR said in an analysis published on Wednesday.

Shares in German Nordex (ETR:NDX1) are currently trading at little below EUR 7.50 (USD 9.96), up from EUR 3 at the beginning of the year. The company expects to reach a breakeven point in 2013 and the new orders announced over the last weeks only serve to bolster optimism.

But Nordex is not alone in its success. Spanish Gamesa (MCE:GAM) has managed to return to profitability, reporting a first-half profit of EUR 22 million. Its share price has climbed to EUR 6 from EUR 1.60 at the start of 2013.

Meanwhile, shares in Danish Vestas (CPH:VWS), which is to announce quarterly figures next week, are trading at about EUR 15, compared with EUR 4.40 last year.

HSBC analysts recently predicted that the market is about to pick up, with Vestas being best positioned to benefit from the future growth. At the same time, the Global Wind Energy Council (GWEC) expects annual installed wind capacity to grow by 39.6 gigawatt (GW) to 322.4 GW in 2013.

(EUR 1 = USD 1.328)

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