Gamesa Expects Revenue Boost From Wind-Park Maintenance Demand

Gamesa Corp. Tecnologica SA (GAM), the Spanish wind-turbine maker that’s tripled in value this year, expects demand for its maintenance division to increase as utilities lack the funds to build new projects.

Spain’s energy reform, a package of measures announced this month that will cost power generators an estimated 2.7 billion euros ($3.6 billion) this year, may benefit Gamesa, Chief Executive Officer Ignacio Martin said today in an interview.

“This decree means new installations will come by accident, if at all, and clients are going to need to maximize revenues from the power production they have,” Martin said in Madrid. “Parks grow old, and if you don’t do anything to maintain them their capacity becomes weaker.”

Gamesa, which supplies and maintains turbines for developers including Iberdrola SA (IBE) and FCC Energia SA, said this week it returned to profit in the first half. The company hopes to boost revenue in Spain from supplying maintenance services and turbines that generate power at lower cost, Martin said.

To contact the reporter on this story: Patricia Laya in Madrid at playa2@bloomberg.net

To contact the editor responsible for this story: David Risser at drisser@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.