VESTAS WIND ADR (OTCMKTS:VWDRY) continued trading in the short term range of $19.00-$19.50 for another day and closed at the end of the day with a minor gain of 1.30%. The volume of the day at 503,000 was much higher than the daily average of 45,000, reflecting the interest it is getting at these higher levels after registering a new 52 week high last week. The structure looks very bullish with the strength obvious. On the other hand, the bulls may take some precaution as the area around $20 represents a long term resistance line, as shown on the chart attached.
Anders Runevad, the CEO of VESTAS WIND ADR (OTCMKTS:VWDRY) stated that China is, and will remain a strong marketplace for renewable energy. Like GE, Vestas is a leading name in the wind industry. The company was the number one global supplier last year. Its dominance in the United States market is no less.
For 2Q2015, Vestas’ turbines appeared in more than 35% of the utility-scale wind assignment. Overall, the company has witnessed success in the United States market. For 1Q2015, it posted orders totaling 341 Mega Watt, and it confirmed deliveries totaling 597 Mega Watt, a 55% jump over the 385 Mega Watt it recorded in the first quarter of 2014.
Vestas is expecting the rest of FY2015 to be strong as well. It increased its projected revenue for FY2015 from a minimum of 6.5 billion euros to 7.5 billion euros. It increased estimates on its free cash flow to a minimum of 600 million euros from 400 million euros.
Providing services firms an integral part of Vestas’ operations. The company increased its service deals with contractual future sales 9% in last one year. Coming to revenue from services in 1Q2015, Vestas reported 255 million euros in service revenue, a jump of 13% over the comparable period, a year earlier.
The wind industry is one of the many segments lauding Obama’s Clean Power Plan, as an important measure in furthering U.S.’s adoption of renewable energy. Lowering the content of carbon dioxide to 32% less than the 2005 mark by 2030 will result in considerable addition of wind capacity.
Michael Goggin of AWEA stated that wind segment forms 57% of the optimal energy mix to meet with the planned Clean Power Plan. Thanks to combination of zero emissions and low cost, wind energy is going to have a significant role in cost-effectively achieving the carbon rule.