UPDATE 2-Vestas says is preferred supplier to Spain schemes

Published 11/23/2010, 11:30 AM
Updated 11/23/2010, 11:32 AM

* Vestas says is preferred supplier for Galicia turbines

* Says 70 pct of tender capacity based on Vestas technology

* Could be worth up to 1.7 bln eur if all orders confirmed

* Shows company has strong position in Spain -analyst

* Galicia to install turbines 2012-2014

(Adds details, quotes, share price)

COPENHAGEN, Nov 23 (Reuters) - Danish wind turbine manufacturer Vestas said on Tuesday it had been chosen as preferred supplier for wind projects with total capacity of 1,655 megawatts, to be installed in Spain in 2012-14.

An order of that size would be significant for Vestas, the world's largest wind turbine maker, which has forecast its 2010 order intake will reach 8,000-9,000 MW, falling to 7,000-8,000 MW the year after.

As a rule of thumb, turbine orders are considered to be worth about 1 million euros per MW, so landing all the projects for which it is preferred supplier could be worth 1.6 billion to 1.7 billion euros ($2.17-$2.31 billion) to Vestas.

Vestas Wind Systems A/S said in a statement its position as "preferred technology partner" was confirmed by the regional government of Galicia following a public tender.

More than 70 percent of tender capacity of 2,325 MW has been awarded to 20 bidding companies that submitted proposals based exclusively on its technology, Vestas said.

"Vestas will continue negotiations with the companies and orders will be announced as they become firm and unconditional and, moreover, comply with Vestas' rules of disclosure," said Vestas, which on Monday forecast no growth in profit and revenue next year.

Normally Vestas only announces firm and unconditional orders, but investor relations chief Peter Kruse said it made an exception this time because the potential orders were so large.

Kruse said the remaining 30 percent of the 2,325 MW would be delivered by a number of Vestas rivals, but did not name them.

Vestas shares, which dropped 5.3 percent on Monday when its revised 2011 guidance and restatement of historical revenue disappointed analysts, rose 0.4 percent to 169.80 crowns by 1538 GMT, outperforming a soft Copenhagen bourse.

"The Spanish market is one where Vestas is making very big efforts," Sydbank analyst Jacob Pedersen told Reuters.

"They are preferred supplier for a large part of approved projects, and that is a big sign of strength in a market where (Spanish rival) Gamesa is," Pedersen said.

"That supports my view the company is technologically and geographically very well positioned."

($1=.7360 Euro)

(Reporting by John Acher, Shida Chayesteh and Teis Jensen; Editing by David Holmes and David Hulmes)

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