Vestas Wind Systems A/S agreed to sell wind power plants in Bulgaria and Romania to Lukerg Renew, improving the company’s cash holdings and adding to earnings.
Vestas, the wind-turbine producer with the most installed capacity, will reap 127 million euros ($168 million) from the sale in the second and third quarters, it said in a statement.
“Development and ownership of projects is not part of Vestas’ regular business model,” the Aarhus, Denmark-based company said today. They were “co-developed by Vestas, among other things, to increase Vestas’ share of green electricity.”
The company is trying to end two years of losses, saying in February it put some factories up for sale to pare fixed costs by 400 million euros in the two years through 2013.
The sales “help reinforce the impression that Vestas is working fast to get into better financial shape,” Jacob Pedersen, an analyst at Sydbank A/S in Aabenraa, Denmark, said in a note, reiterating his buy recommendation on the company.
The stock rose 2.8 percent to 74.35 kroner by 11:06 a.m. in Copenhagen, with the share price more than doubling this year.
Vestas is selling the 70-megawatt Gebeleisis wind farm in the Galati region in Romania, operational since February, and the 14-megawatt Hrabrovo plant in Bulgaria’s Dobrich region. The Hrabrovo deal, worth 17.6 million euros, is subject to approval by Bulgarian competition authorities, Vestas said.