Vestas Falls as Suzlon Takes Gode Wind Order

Vestas Wind Systems A/S (VWS), the world’s largest wind turbine maker, was the biggest loser on Copenhagen’s benchmark index today after Suzlon Energy Ltd. (SUEL) won an order some investors had expected the Danish firm to get.

Vestas fell as much as 2.6 percent, today’s biggest decline in the Copenhagen 20 Index. The stock retreated 1.25 kroner, or 2.1 percent, to 59.70 kroner at 10:01 a.m. in the Danish capital. The Aarhus, Denmark-based company lost 65 percent of its market value last year.

“I had expected Vestas would have landed this project, so it’s a shame for the company,” Jacob Pedersen, an analyst with Aabenraa, Denmark-based Sydbank A/S, said by phone.

Suzlon’s Repower unit will deliver 54 of its 6-megawatt turbines to PNE Wind AG’s Gode Wind I project, the Pune, India- based company said today. Vestas said last year it signed a conditional agreement to supply turbines to the Gode Wind II project, also to be managed by PNE.

“This shows that Vestas is lacking something when it comes to off-shore, where it can’t offer customers the same size of turbines that Repower can,” said Pedersen, who has an overweight recommendation on Vestas shares, meaning he advises investors to own more compared with other stocks.

Vestas’ biggest off-shore turbine has a capacity of 3 megawatts, Pedersen said. It has a 7-megawatt turbine, the V164, under development, which it will start building in 2015.

“Until Vestas gets its big turbine to the market, there’s a risk the company will lose more orders, because ‘big is beautiful,’ in the off-shore market,” said Pedersen.

The Gode Wind I project will be located in the German North Sea.

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tim Quinson at

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