|3 Yr Share Price|
Thursday, 24 October 2019
Vestas Wind - Portfolio Addition
Following on from my acquisition of Orsted earlier this year, I have decided to add another Danish-based renewable energy company to my green portfolio.
Vestas is one of the world's leading players in wind turbines - it designs, makes, installs and services both onshore and offshore turbines and holds the record of providing more turbines throughout 80 countries than any other company. The core of the business is providing sustainable, clean and affordable energy to people all around the world.
They are the global leader in onshore wind - over 100 GW installed and also onshore servicing. They are #2 in offshore wind (behind Orsted) with 5 GW installed and plans to double this by 2022.
Demand for renewable energy solutions is growing rapidly and according to a recent report from the International Energy Agency, could expand by a further 50% by 2024 due to the rapid electrification of transport, industry, heating and cooling. During the coming decade, around 1,500 GW of power from coal, oil and gas will be retired. Renewables are expected to increase capacity to fill the gap and grow from around 10% today to at least 30% of global energy by 2035.
As a global leader in wind power solutions, Vestas should be well placed to capture a fair share of this growing renewables demand.
According to the recent half year results, high demand for their product has led to a record-high order intake and a 15% growth in service revenues. The order backlog stands at an all-time high of EUR 31bn. However profits and margins are down so a bit mixed.
As can be seen from the chart, the share price can be volatile and of course there are FX considerations as the shares are listed on the Copenhagen stock exchange.
The shares have been added to my Halifax ISA and the purchase price was 535 DKK (approx. £63.00).
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation. Holding individual shares always carries more risk than collective investments - always DYOR!