(Bloomberg) -- Vestas Wind Systems A/S has agreed to provide wind turbines for a project off the cost of Poland in the Baltic Sea.

The Danish company said that so far it has entered into a conditional agreement to deliver wind turbines for a 1.2 gigawatt offshore project with Baltic Power, according to a statement. Further details will be disclosed “if and when the agreement translates into a firm and unconditional order.”

Vestas shares, which have lost about one-sixth of their value this year, rose 0.7% as of 9:36 a.m. in Copenhagen.

The new agreement comes as the company sees some relief ahead from the backlog of wind turbine orders that have caused earnings headwinds for one of the industry’s biggest manufacturers. Vestas said it still expects increased costs from a backlog of wind turbine orders to drag down full year earnings.

“We will eat through that backlog that mainly stems from ’20 and ’21,” Chief Executive Officer Henrik Andersen said Thursday in a Bloomberg TV interview. It’ll still take “some quarters” to get through, he said.

Along with its competitors in the wind turbine industry, the company faced steep losses in recent years after costs of steel and other key materials soared and it grappled with delays due to supply chain disruptions. Vestas relies on far-flung suppliers for thousands of components that are assembled in manufacturing hubs before its turbines are shipped to customers. 

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