Vestas V164-10.0 MWTM Turbine : Courtesy of MHI Vestas Offshore Wind
Danish company Vestas Wind Systems (OTCPK:VWDRY) (OTCPK:VWSYF) is the world’s largest wind turbine supplier, having installed more than 108 GW of wind power. And it is very busy, with a full order book and expansion in all directions. Many things about the company indicate good health. Although the current worldwide trade issues impacted its Q2 profits somewhat, Q3 earnings showed that this temporary reversal was a buy opportunity as the share price surged 10.8% on good news from Q3. There are challenges of execution in a tighter market, but wind power, especially offshore, is just getting started. For those investors overweight on fossil fuel stocks, Vestas is worthy of a look in seeking to diversify.
I’ve written about the rise of wind power as a major contributor to the switch from fossil fuels to renewable energy production. Recently, there have been dramatic developments and cost reductions for offshore wind, which has huge potential. The International Energy Agency claimed recently that offshore wind has the potential over the next two decades to become a $1 trillion industry. Here I address these developments and indicate why I think that investment in Vestas is interesting.
For a more cautious view, readers might check out a recent article by Samu Wilhelmsson, who is cautious because he views the political environment as unfavourable for renewable energy. While there is some truth to this view, with President Trump being a noted climate denier and antagonist especially to the wind industry, other issues that I’ve explored in articles concerning decarbonization and emissions reductions would suggest much deeper currents in favour of renewable energy. Indeed, after tracking flat in 2019 until September, the Vestas share price has shown solid progress. Readers are referred to a recent
