Wind turbine manufacturer Vestas has received an order on the Australian market that could have a value of ”the good side of DKK 5 bn,” says Jacob Pedersen, head of equity research at Sydbank, who expects a positive price reaction in the Vestas share from the opening on Wednesday.

”All things being equal, it should have a positive impact on the share today,” he tells MarketWire.

It’s not as if the order has come completely out of the blue, as Vestas’ management had already stated in connection with the annual report that there were orders in the pipeline in the Australian market.

”So it’s not that this order comes as a complete surprise to us, but it’s clear that the size of this order is important,” says Pedersen.

The contract is for 577 megawatts and is a comprehensive EPC contract (Engineering, Procurement, and Construction).

”It’s an order on the good side of DKK 5bn [EUR 670m, ed-]. - and it’s probably closer to DKK 6bn,” says Pedersen.

The agreement also includes a 30-year service agreement.

”This is the full monty,” says the analyst about the total scope of the order.

The Australian order also boosts te company’s overall order intake in the second quarter - especially considering that the company usually announces a string of orders in the final days leading up to the end of the quarter.

”I don’t think we will be talking about a subdued order intake - I think the overall picture will be that it has been a good order intake. At least a good order intake in this quarter,” says Pedersen.

So far in the second quarter, Vestas has now announced orders for 1867 megawatts, which already exceeds the first quarter level of 1503 megawatts.

The first quarter also saw a relatively high level of unannounced orders, which amounted to almost 800 megawatts.

According to Pedersen, there may also have been a number of unannounced orders in the second quarter, and he partially attributes this to the fact that the German market has picked up, which is typically smaller contracts that ”fly under the radar” but are included in the figure for unannounced orders.

”I think we’ll see an unannounced order intake around the same level as in the first quarter - maybe even slightly higher, but certainly 800 megawatts. So it looks like a quarter that will end on a high note,” says Pedersen.

English edit: Catherine Brett