Vestas Wind Systems: Wind Is Not Going Away, Contrarian Opportunity

Keith Williams profile picture
Keith Williams
8.25K Followers

Summary

  • False narratives confusing energy investors: Russia, renewables crisis? Addressing climate off the agenda? These confuse investors about the pace of renewables today.
  • Vestas is in a strong financial position and it is disciplined about pricing issues, willing to pass up non-profitable opportunities. Two competitors (GE and Siemens Gamesa) recently announced substantial layoffs.
  • Vestas might benefit from not being Chinese as the Chinese wind industry begins to dominate the global wind industry at a time of massive expansion, especially of offshore wind.
  • Vestas management has a very Scandinavian approach to the current crises (COVID, Russia, etc), being focused on maintaining its strong position and addressing key issues (pricing, delayed orders, supply).
  • My contrarian position is that Vestas is a major corporation that is weathering a crisis in the wind industry and it will emerge stronger and more profitable.

Vestas office building in Aarhus, Denmark

ricochet64

Wind is struggling and a big picture overview is not an inaccurate summary as to how wind is perceived and likely to perform in coming years. The above view is heavily influenced by IEA's views, which in the

This article was written by

Keith Williams profile picture
8.25K Followers
Keith began his career as a research scientist (developmental biology, biochemistry, molecular biology) at the Australian National University, University of Oxford (UK), the Max Planck Institute for Biochemistry (Munich, Germany) and finally Macquarie University (Sydney) where he held a Chair in Biology and established the Centre for Analytical Biotechnology. Pioneering the area of proteomics (with Marc Wilkins in his group coining the term), Keith established the world’s first government-funded Major National Proteomics Facility (Australian Proteome Analysis Facility) which was involved with industrialising protein science. Keith left academe with his team to found Proteome Systems Ltd in 1999 to commercialise proteomics. The company had a strong focus on intellectual property, engineering/technology and bioinformatics. As CEO he led the company to ASX listing in 2004. Since 2005 Keith has been involved in new business development in biotech, e-health and other emerging technologies. Keith sees climate change and sustainable development as a major issue for humankind and also a major business disruptor/risk and opportunity. Keith holds a Bachelor Agr Science from the University of Melbourne and a PhD from the Australian National University. He is a Fellow of the Australian Academy of Technological Sciences & Engineering and received an AM (Member of the Order of Australia) for services to the Biotechnology Industry. He has received various industry awards including an Innovation Hero Medal from the Warren Centre for Advanced Engineering. With 300 scientific papers and many patents written, Keith has a clear view of innovation in the Biotechnology and Climate/Renewable Energy space. He is not a financial advisor but his perspective adds relevance to decision-making concerning feasibility and investment in technology innovation.

Disclosure: I/we have a beneficial long position in the shares of VWDRY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (107)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.