Aeris closes a deal to sell R$1.6 billion in wind blades to Nordex Energy

The supplier of equipment for wind generation Aeris (AERI3) signed a R$ 1.6 billion contract with Nordex Energy for the manufacture of wind blades.

The agreement will remain in effect until the end of 2023, and will result in a net increase in the potential of orders covered by long-term contracts in the amount equivalent to 2.0 gigawatts (GW).

The agreement provides for the conversion of two existing and contracted production lines to a blade model that serves wind turbines with power greater than 5 megawatts (MW).

There is also the forecast to install a new production line using the same model of equipment.

According to XP, the announcement is positive, as it gives the market more comfort in relation to the expectations of high revenue growth embedded in the company’s financial projections – adding the 2 GW of potential incremental production mentioned above. Analysts estimate about 65% of expected production between the second half of 2021 and 2024 under current contracts.

“Despite strong expected profit growth of about 42% per annum over the next three years, we see limited room for equities to rise, mainly due to a longer-than-expected recovery in the company’s return levels (ROIC, or Return on Invested Capital, of 11-20% in 2021-2023, against about 21% reported in 2020)”, point out XP analysts, who reiterated a neutral recommendation for the shares.

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