Balfour Beatty Reaches 3-Month High on Offshore Wind Farm Link

July 29, 2013 by  
Filed under Green Energy News

Balfour Beatty Plc (BBY), the U.K.’s
largest construction group, reached its highest in three months
after being appointed preferred bidder for power links at an RWE
AG (RWE)
wind farm off the U.K. coast.

The London-based company rose as much as 3.2 percent to
250.10 pence, its highest intraday price since April 24. It
traded 2.4 percent higher at 250 pence at 11:40 a.m. in London,
giving the company a market value of 1.7 billion pounds ($2.6
billion).

Balfour and investor Equitix Ltd. will own and operate the
transmission assets for the 576-megawatt Gwynt y Mor wind farm
being built by RWE Npower Renewables Ltd. off the North Wales
coast, energy regulator Ofgem said today in a statement. They
were selected after a tender process by the U.K. Department of
Energy and Climate Change and Ofgem.

“This is positive news as it seems that the pipeline is
improving, and they are diversifying from social and
transportation public-private partnerships further into
utilities infrastructure,” Olivia Peters, an analyst at RBC
Capital Markets
, said in a telephone interview.

The U.K. has more installed offshore wind power than the
rest of the world put together, with 3,321 megawatts of
capacity, according to trade association RenewableUK.

The energy regulator Ofgem estimates about 15 billion
pounds of investments are needed in the transmission networks to
connect all currently planned offshore wind power projects to
the mainland.

The government on July 17 outlined an investment plan into
low-carbon infrastructure that envisaged 18 gigawatts of
offshore capacity by 2030.

Balfour received more orders in the U.S. and predicted
rising profitability at its U.K. unit earlier this month. The
company, which has more than 50,000 employees and generates half
of its revenue in Britain, issued a profit warning in April amid
sluggish U.K. demand.

To contact the reporter on this story:
Alex Pashley in London at
apashley@bloomberg.net

To contact the editor responsible for this story:
Simon Thiel at
sthiel1@bloomberg.net

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