Five-year Drax renewal and a swelling repowering pipeline lift shares in the onshore wind services specialist.
European Green Transition (AIM: EGT) saw its shares rise 2% after the wind services group reported fresh commercial momentum in the third quarter, headlined by a renewed five-year operations and maintenance contract with Drax covering 94 onshore turbines that extends its relationship with the energy giant to 2031.
The shares moved higher as investors welcomed confirmation that the Drax deal, first struck in 2021, had been extended, alongside steady progress on the company's turbine repowering programme, which it now values as a £126m revenue opportunity across roughly 280 potential projects.
EGT, which services more than 900 onshore wind turbines across the UK and Ireland, said it signed four further repowering agreements during the quarter, taking the total to 69, while three further repowers were completed, bringing the cumulative total to 11. The company's Anemos Analytics monitoring arm also grew its contracted turbine base to 136, and EGT agreed a new partnership with a battery storage provider.
Executive Chair Cathal Friel said the Drax renewal demonstrated the quality of the group's service offering and its ability to build long-term relationships with leading operators, adding that continued progress across the repowering pipeline underpinned confidence in the outlook for the business.
Management reiterated its medium-term target of £50m in group revenue, pointing to a growing orderbook and supportive market conditions as it seeks to build what it describes as a leading critical infrastructure and renewable services platform. Further updates on repowering conversions and new contract wins are likely to be the key catalysts investors watch for next.
This report is based on European Green Transition’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Wolfgang Weiser on Unsplash.
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