3 de octubre de 2014 / 8:14 / hace 3 años

EXECUTIVE VIEW-Vestas' Brazil order cancelled due to funding rules


COPENHAGEN, Oct 3 (Reuters) - Danish wind turbine maker Vestas Wind Systems announced on Friday that delivery of a 254 MW project to the customer CPFL Renováveis in Brazil has been cancelled due to changes in local legislation.

The company said it does not expect the cancellation to impact its outlook for 2014.

Shares in Vestas traded 1.7 percent lower at 0814 GMT, underperforming a 0.4 percent rise in the Danish benchmark index.

Below are comment made by Vestas' head of external communications Michael Zarin.

On Why the Order Was Cancelled

"The changes in legislation that we are referring to have to do with the exact terms and conditions for delivery under the Brazilian FINAME code, which was changed some time ago. The code has to do with the local financing of projects from the Brazilian national development bank."

"Because the negotiations with our customer, CPFL, are ongoing regarding the final terms an conditions of the termination, we are not going to comment further on the exact nature of the contractual arrangements."

"I do want to emphasize that while unfortunate, it is of course an amicable agreement between Vestas and CPFL. We tried to come to an agreement and we weren't able to do so, and on a friendly basis we decided to terminate the contract."

"We will not comment on any further specifics."

On Whether 2015 Financial Results Will Be Impacted

"We don't comment on future expectations beyond what we have already said."


"No. There aren't any other projects where we expect this change to have an impact."

For more on the company, click on. (Reporting by Teis Jensen, editing by Terje Solsvik)

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