UK order for unit boosts Suzlon Energy

The company made this announcement at the fag end of trading hours on Tuesday, 20 December 2011. The stock had lost 1.39% to settle at Rs 17.75 on that day in a weak market.

Meanwhile, the BSE Sensex was up 258.89 points, or 1.71% to 15,433.97.

On BSE, 7.70 lakh shares were traded in the counter as against average daily volume of 38.10 lakh shares over the past one quarter.

The stock hit a high of Rs 18.60 and a low of Rs 18.10 so far during the day. The stock had hit a record low of Rs 17.50 on Tuesday, 20 December 2011. The stock had hit a 52-week high of Rs 58.45 on 21 April 2011.

The stock had underperformed the market over the past one month till 20 December 2011, falling 25.42% compared with Sensex's 7.31% decline. The scrip had also underperformed the market over the past one quarter, declining 56.12% as against Sensex's 11.25% fall.

The mid-cap wind turbine maker has an equity capital of Rs 355.47 crore. Face value per share is Rs 2.

Suzlon Energy said, its wholly owned subsidiary, REpower has signed a deal to supply 20.5 megawatts (MW) to Sixpenny Wood wind farm, which has been developed by Your Energy, a subsidiary of AES Wind Generation. The wind farm, located 2.5 miles east of Howden in the East Riding of Yorkshire consists of 10 MM92 REpower machines, Suzlon further added.

Suzlon Energy said this is the first contract REpower has signed with AES Wind Generation, which is a subsidiary of the AES Corporation, a global power company operating more than 1,800 MW of wind capacity around the world. The turbines at Sixpenny Wood, with a rated output of 2.05 MW each, will generate enough electricity to power the equivalent of nearly 12,000 homes annually, Suzlon said in a statement. Installation of the wind turbines will start in mid-2012 and the wind farm is expected to be complete by the end of the year, Suzlon added.

Commenting on the latest order win, Rick Eggleston, MD, REpower, UK said, "It is a pleasure to be working with AES Wind Generation for the first time. We have already installed a number of wind turbines in that area, so we know that the MM92 machine that we are supplying for Sixpenny Wood is ideal for the local wind conditions".

Commenting on the development, David Wilson, Project Director, AES said, "AES is pleased to begin working with REpower on this project and hope this contract signals the start of a successful relationship".

Since its launch in 2004, REpower UK has delivered 36 onshore wind farms in Scotland, England and Wales and one offshore wind farm named Project Beatrice in the North Sea. The company's largest offshore contract is currently underway, with the company currently commissioning the 30 REpower 5M wind turbines for Vattenfall's Ormonde wind farm in the Irish Sea, with a total output of 150 MW.

On a consolidated basis, Suzlon Energy reported a net profit of Rs 48 crore in Q2 September 2011, compared with a net loss of Rs 369.23 crore in Q2 September 2010. Net sales rose 34.5% to Rs 5071.10 crore in Q2 September 2011 over Q2 September 2010.

The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity, at the end of 2010. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with over 18,000 MW of wind energy capacity installed in 28 countries, operations across 32 countries and a workforce of over 13,000.

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