Siemens Gamesa wins biggest contract in Egypt to date

Siemens Gamesa wins Egypt contractSiemens Gamesa

Siemens Gamesa has won a new contract to install 125 wind turbines, with a total capacity of 262 MW, in the Gulf of Suez wind park in Egypt.

The company will also handle the maintenance of the project for 15 years. The new turbines are due to become operational at end-2019.

This is the largest wind energy contract Siemens Gamesa has won in Egypt where it is already the market leader.

Renta 4 says the news is “positive, with a limited impact,” but flags the “huge growth potential” of Egypt’s wind energy market where it is estimated that 6.500 MW will be installed up to 2026. The analysts add:

“We reiterate our cautious view on the stock, ahead of expected greater visibility from its corporate strategy presentation in February.”

Siemens Gamesa is one of Alphavalue’s “hot” stocks and it has a target price of 11,5 euros/share.

“The stock price has been hit hard up to now, but the latest news has provided a more settled performance. With a bit of support, it could soon return to the 12 € level. The recovery has already begun.”