Areva’s Earnings Struck by Global Tech 1 Delays

Global Tech 1, 400W wind farm in the North Sea delivered a harsh blow to Areva, according to the first quarter results of 2014 issued yesterday.

The company said that additional costs were a result of “delays experienced over the winter during the offshore installation and turbine testing phase.”

These were attributable “to the supplier of electrical access to the wind farm, to the late availability of a ship, and to particularly severe weather conditions,“ says the report.

Areva has also entered negotiations with Gamesa, earlier this year, for the creation of 50/50 joint venture, which they believe will become a world leader in offshore wind industry.

The deal is expected to be sealed in the summer.

Areva’s renewable energy business reported 18 million revenue for the first quarter of 2014, which is 38% lower comparing to the same period last year.