| Wind Watch is a registered educational charity, founded in 2005. |
World’s biggest wind turbine maker sinks after Trump victory
Credit: World’s Biggest Wind Turbine Maker Sinks After Trump Victory (2) | Christian Wienberg and Anna Hirtenstein | Bloomberg | Nov 09, 2016 | bloomberg.com ~~
Translate: FROM English | TO English
Translate: FROM English | TO English
Shares in Vestas Wind Systems A/S plunged after U.S. voters unexpectedly propelled Republican nominee Donald Trump to the presidency, sparking concern that the renewable- energy industry will face future political headwinds.
The world’s biggest maker of wind turbines fell as much as 14 percent and traded 6.6 percent lower at 440.10 kroner as of 12:50 p.m. in Copenhagen. Stock of the Danish company already lost ground last week after U.S. polls tightened, bringing this year’s declines to about 10 percent.
“The U.S. is not the only market in the world, but it’s important for us,” said Chairman Bert Nordberg by phone. “It doesn’t have with us to do that the stock is jumping up and down – we have reported growth and profit.”
Trump has been vocal about his climate skeptic views, tweeting that he believes that global warming is a hoax created by China. He also tried to get an offshore wind project canceled near a golf course he owns in Scotland, losing a two-year legal battle in July.
Nordberg expects the incentive for wind power known as the production tax credit, or PTC, to stay in place for the next five years. The renewable energy may also play into the politician’s protectionist agenda, as the electricity will be produced within the country’s borders, he said.
“I think Trump has a lot of other things to deal with right now rather than wind energy,” the chairman said.
Analysts had already guided investors in Vestas to expect price shocks depending on the outcome of the Nov. 8 election. Bloomberg Intelligence estimates that about 41.3 percent of Vestas’s revenue last year came from the Americas.
“The Vestas share reaction is a result of concerns that Trump will focus more on fossil fuels,” Otto Friedrichsen, equity strategist at Formuepleje, said by phone after the result was clear. “Now there’s concern how Vestas will perform in the U.S. under a president who’ll be more interested in looking out for the country’s coal industry.”
According to an Ernst & Young LLP survey published last month, the U.S. stands to lose its position as the top-ranked renewable-energy market for investors under a Trump administration.
Trump has made clear “he hates wind turbines and will do what he can to fight them,” Jacob Pedersen, head of equity analysis at Sydbank, said earlier this month.
(Updates with chairman comment from the third paragraph.)
This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.
The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.
| Wind Watch relies entirely on User Contributions |
 (via Stripe) |
 (via Paypal) |
Share:
[ Short URL: https://wind-watch.org/news/?p=80192 ]
