Nordex With a Sharp Decline in Orders in Q2 2020
Hamburg, Germany - The Hamburg-based Nordex Group was able to obtain numerous firm orders in the second quarter of 2020 despite the difficult circumstances created by the coronavirus pandemic. At the same time, however, there has been a sharp decline of more than 50 percent compared with the same quarter of the previous year.
Nordex receives orders for 888 megawatts in Q 2 2020
In the period from April to June 2020, Nordex customers ordered 217 wind turbines for projects with a combined capacity of 888.0 megawatts (MW). Compared with the second quarter of the previous year, this represents a decline of 56 percent (Q2 2019: 2,003.3 MW). In the first half of 2020, firm orders received in the projects segment (excluding service business) thus totalled 2,531.9 MW, which is a decline of 17 percent compared with the first six months of 2019 (H1 2019: 3,038.4 MW).
"The global economy continues to be severely impacted by the coronavirus pandemic – as are we, our customers and suppliers, of course", said Nordex CEO José Luis Blanco. This makes it all the more gratifying that Nordex customers are consistently moving ahead with their projects and preparing for the growing global demand for renewable energy. Accordingly, Blanco expects strong demand for Nordex turbines and services in the second half of the year.
Focus on orders in Europe - Delta 4000 series popular
Europe accounted for 83 percent of the order intake in the second quarter of 2020, with major projects in Spain and Ireland contributing to this figure. Further orders came from Brazil (Latin America region: 17 percent). With respect to the Nordex product range, Nordex customers favor turbines of the current Delta 4000 series: In the second quarter of 2020, around 65 percent of orders were for the various turbine types in this platform, with the share for the first half of 2020 as a whole standing at 79 percent, according to Nordex.
Nordex stock price gains substantial
Last week, Nordex's share price gained a substantial 6.6 percent to reach EUR 9.41. This week, Nordex stock also got off to a favorable start yesterday (2020-07-20) with a gain of 3.6 percent to EUR 9.75. According to the order figures, an analyst at the American investment bank Jefferies has left Nordex stock unchanged at Buy with a price target of EUR 12. Although the order level appears to be somewhat lower than in previous quarters, Nordex's order receipts remain robust overall.
Source: IWR Online, 21 Jul 2020