The comparison is relevant. Vestas began to float in Copenhagen in 1998, just as the Kyoto Protocol was raising global concerns about climate change. The direct response to BP's corporate greenery was a direct reaction.
London (Natural Energy News): Vestas Wind Systems BP showing what a missed boat looks like. The increasing demand for renewable energy has increased the Danish wind turbine manufacturer's market value 15 times to a record $ 29 billion 20 years ago. This was when the $ 78 billion UK oil giant was leaving environmental puffs for the first time about being "Beyond Petroleum".
The comparison is relevant. Vestas began to float in Copenhagen in 1998, just as the Kyoto Protocol was raising global concerns about climate change. There was a direct response to BP's corporate greenery.
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The 111-year-old multinational operates several onshore wind farms in the United States, resulting in dabbling with renovations in the 2000s. But Chief Executive Bernard Loney wants a 40 per cent reduction in oil and gas production and a 10-fold increase in renewables investment to $ 5 billion per year over the next decade. Strategic imperatives point to costly acquisitions. A modest supply of potential synergy and previous experience suggests a high risk of underperformance.
Regrets are clearly meaningless, but the lesson is clear from this particular story of the two companies. Back in 2000, BP could be cheaper by swallowing Vestas. It cost 100 times more than the Danish company. Now, the ratio is close to 2.5. And Vestas is currently trading at about 15 times its enterprise value, its highest level in five years.
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If Lonnie wants to venture into a green business on a large scale, the search for Bargain could prove costly, as people from Denmark like the $ 58 billion Orsted from Vestas and wind-power are also growing rapidly. Despite Coronavirus, Vestas' revenue in the last three months was two-thirds higher than the previous year. CEO Heinrich Andersen can place orders worth 35 billion euros on his books.
Meanwhile, Lonnie has halved BP's dividend to make room for green ventures. Investors looking back may worry about what will happen next. BP's share price is less than 50 percent since 2000, giving shareholders a total of 0.2 percent in dollar terms with a total return per year. The comparable number for Vestas is 12.1 percent. It would have been nice if only BP had overtaken Petroleum.
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Danish wind turbine-making company Vestas Wind Systems jumped 67 percent in revenue for the three months from August 11 to the end of June, with no reduction in renewable energy demand.
Vestas restored its full-year revenue guidance to raise its forecast from 14 billion euros to 15 billion euros in February due to uncertainty over coronaviruses.
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However, the company reduced its 2020 operating margin from 7 per cent to 5 per cent -7 per cent due to the effect of locking restrictions.
Chief executive Heinrich Andersen said the 175 million euro charge relates to repairing a "limited" number of turbines after lightning strikes and protecting them from future damage.
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