Vestas Wind Systems A/S rose today the most among Copenhagen benchmark stocks after China’s plans to boost wind energy looked set to raise prices and creditors approved the world’s largest turbine maker’s lending facilities.
Vestas gained as much as 9.4 percent, making it the biggest winner on the Nasdaq OMX Copenhagen 20 index. The stock rose 6.2 percent to 42.09 kroner at 11:32 a.m. in the Danish capital with trading volume at 162 percent of the three-month daily average.
China will boost wind production capacity this year, adding 18 gigawatts, the National Energy Administration said this week. China had production capacity of 63.5 gigawatts at the start of last year, according to the most recent data available to Bloomberg New Energy Finance. The increase probably will tie up Chinese producers, leaving more of the global market to Vestas, Jacob Pedersen, an analyst with Sydbank A/S, said.
“With China’s market set to grow so much this year, Vestas will have less competition elsewhere in the world as Chinese producers will focus on delivering to their home market,” Pedersen said by phone. “This will limit production overcapacity and therefore have a positive impact on global turbine prices.”
Vestas also said today it had obtained approval for its credit facilities, extending share gains. The facilities consist of bank lines of 1.16 billion euros ($1.53 billion) and a 600 million-euro bond, Vestas said.
Stock in the Aarhus, Denmark-based company has jumped 32 percent so far this year, the most in the C20 index, after plunging in 2012. The share lost 49 percent last year as industry overcapacity and lower government subsidies for green energy pressured turbine prices.
Pedersen, based in Aabenraa, Denmark, has a neutral recommendation on the Vestas share.