US climate package puts wind in sales of Danish turbine maker

Vestas, the Danish wind turbine maker with production internationally and in Denmark, has seen its market value increase by around 26 billion Danish kroner (3.5 billion euros).

US climate package puts wind in sales of Danish turbine maker
Vestas could be given a boost by a US green energy package should it pass through Congress. File photo: Henning Bagger/Ritzau Scanpix

The value of the company’s shares increased by 15.9 percent on Thursday, giving 26 billion kroner in additional value.

The market value of Vestas has increased by 25.8 billion kroner to 188.4 billion kroner according to media Marketwire.

Vestas has about 29,000 people on its payroll globally, with around 5,900 of those based in Denmark.

The value of Vestas’ shares shot up after a 369-billion-dollar climate package moved through the United States Congress.

Vestas’ stock price leapt after Democrats in the US agreed to the package Wednesday. 

Orders from the United States have accounted for more than a third of Vestas’ business in some years.

The US climate deal could become incredibly important for the Danish company, according to Jacob Pedersen, senior stock market analyst with Sydbank.

“There has been a market in the United States which, in its best years, has comprised more than a third of Vestas’ total business,” Pedersen told news wire Ritzau.

“That’s a market that is currently running on fumes a little. Not because green financing schemes aren’t there, but because of uncertainty over whether a better arrangement is on the way,” he said.

Should the US plan become reality, the American wind turbine market will get a significant boost in coming years. That could prove highly valuable for the Danish manufacturer, he said.

The plan has not yet been passed in the US, so the 16 percent increase in share price might not be an accurate reflection of how the situation will play out.

“It’s clear that you can look at 15 percent as an over-reaction to a plan that hasn’t been adopted yet,” he said.

“But the reality is that a strong American market is worth a lot more for Vestas than 16 percent more in share prices, because the market could go on to comprise between 30 and 40 percent of their activities,” he said.

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SAS strike affected 380,000 passengers in July

More than 3,700 flights where cancelled and 380,000 passengers where affected by the 15-day strike which hit Scandinavia's SAS airline last month, the company has revealed.

SAS strike affected 380,000 passengers in July

“We sincerely apologize to our customers who were affected by the July strike,” Anko van der Werff, the company’s chief executive, said in a press release. “We are happy operations returned to normality again allowing us to start regaining our customers’ trust.”

According to the release, 1.3 million passengers travelled with the airline in July, which was still a 23 percent increase on the same month last year, when Covid-19 restrictions were still reducing tourism levels.

“In comparison with last month, the total number of passengers decreased with 32 percent and capacity was decreased by 23 percent, which was a result from the 15-day pilot strike,” the release read. 

Pilot unions in Sweden, Denmark and Norway, went on strike for 15 days last month over pay, conditions, and the company’s refusal to rehire pilots laid off during the Covid-19 pandemic on the same terms as before. 

The strike, which cost the airline between €9m and €12m a day, was ended on July 19th, after which it took several days to get flights back to normal

Van der Werff said company said it would now continue putting in place its restructuring plan, SAS FORWARD, and push ahead with restructuring in the US, where the company has filed for Chapter 11. 

He said these would both “accelerate the transformation process that will lead to a financially stable airline, that will be able to deliver the service our customers are expecting”.