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BUSINESS

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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BUSINESS

Maersk profits plummet as Yemeni attacks close off Red Sea route

Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.

Maersk profits plummet as Yemeni attacks close off Red Sea route

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year. Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.

The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement.

“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.

“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”

Iran-backed Huthi rebels, who control the Yemeni capital Sanaa and much of the country’s Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.

The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.

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