Shares of Vestas Wind Systems A/S, the world’s biggest wind-turbine maker, fell the most in three years as investors weighed the impact of the US election on the renewable energy sector.

Shares fell as much as 13 percent in Copenhagen before recovering some losses in early trading

The wind turbine maker posted a stronger-than-expected profit in the third quarter on Wednesday

Earnings before interest and tax before significant items fell 4 percent from a year earlier to EUR 412 million ), but came in above the consensus analyst estimate of EUR 373.8 million.

Key insights

“Vestas outperformed consensus in the third quarter and is on track toward guidance targets, but uncertainty from the US election result is driving volatility within the renewables sector right now,” said James Evans, clean energy analyst at Bloomberg Intelligence

The estimate for Vestas’s dividend payments over the next year fell 1 percent to DKK 7.90 (USD 1.24), according to Bloomberg Dividend Forecasts.

Vestas had a surge of turbine orders in the third quarter, making up for a slow start to the year after the coronavirus interrupted its supply chain. The company had its highest ever amount of deliveries in a single quarter, helping grow revenue 31 percent from a year earlier to EUR 4.8 billion. That’s without a potential future benefit from green stimulus packages, the company said.

Vestas is buying out its joint venture partner to sell turbines at sea in a move to try and dominate the growing offshore wind sector. But success might not be seen for years. Even if Vestas wins every order available in the next five years, its market share would still be smaller than that of Siemens Gamesa Renewable Energy SA, according to BloombergNEF.

Executive comment

Henrik Andersen, Vestas CEO: “Although uncertainty around COVID-19 will continue for the rest of the year, our sustained leadership in onshore wind energy and the acquisition of MHI Vestas Offshore Wind underline our progress towards becoming the global leader in sustainable energy solutions.”

Market reaction

Shares are up 55 percent this year.

Vestas supplied 6 GW in Q3 

Vestas hopes for a Biden win