Vestas raises forecast after record order intake

Danish wind turbine maker Vestas Wind Systems on Wednesday raised its full-year guidance after posting an 18 percent revenue rise in a "historically strong first quarter" that saw orders rise to record levels.

Vestas raises forecast after record order intake
Vestas reported its highest intake of orders ever. Photo: Claus Fisker/Scanpix
Vestas's revenue rose 18 percent to 11.3 billion kroner (1.52 billion euros, $1.7 billion) in the first quarter as the group reported its highest order intake ever in the January to March period.
Together with a strengthening US dollar, the 47 percent increase in orders prompted the group to raise its yearly revenue forecast to 7.5 billion euros, up from a previous estimate of 6.5 billion.
"This has been a historically strong first quarter on revenue, margins, order intake, and return on invested capital," chief executive Anders Runevad said in a statement.
Net profit jumped to 56 million euros from two million euros, partly due to a fall in losses on financial items.
The results were "strong across the board," Sydbank analyst Jacob Pedersen told news agency Ritzau, adding that he thought the company would post "record results" for the year.
Shares in Vestas were 3.1 percent higher in midday trading on the Copenhagen bourse, where the main index was down by 0.3 percent.

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Denmark and Baltic countries plan ‘seven times more’ offshore wind energy

Denmark and other nations bordering the Baltic Sea will announce on Tuesday a plan to dramatically boost offshore wind energy by 2030. 

Denmark and Baltic countries plan 'seven times more' offshore wind energy

Today, just under 3 gigawatts are generated in the Baltic Sea, about half of which is Danish energy. An additional 1,100 to 1,700 offshore wind turbines will be needed to bring the total energy capacity to nearly 20 gigawatts in 2030.

A joint agreement to reach these levels in coming years is to be announced by participating countries on Tuesday, according to newspaper Politiken.

The newspaper reports a draft declaration it has seen in relation to the agreement, which will be presented at a summit at the Danish prime minister’s residence, Marienborg, north of Copenhagen on Tuesday.

READ ALSO: Denmark keen to join with Baltic countries on wind energy

Should the amount of additional energy reported by Politiken be produced, as many as 22 to 30 million households could see their energy needs covered by wind power.

Prime Minister Mette Frederiksen talked up the importance of wind power in comments to Politiken.

“The war in Ukraine and climate change are being met with now. We have two crises on the table at the same time. We need to speed up green energy conversion and we need to free ourselves from Russian fossil fuels,” she said.

Frederiksen is participating in the summit on behalf of Denmark. Senior officials and leaders and from Germany, Poland, Sweden, Finland, Estonia, Lithuania, Latvia and the EU Commission will also attend.

The summit was earlier scheduled to take place on Denmark’s Baltic island Bornholm but was moved due to a strike at Bornholm’s airport, which was not resolved until late on Monday.

A total of 2.8 gigawatts of wind power are currently produced in the Baltic Sea according to the Danish energy ministry.

Potentially, that could be increased to 93 gigawatts by 2050, an EU Commission assessment has found.

Earlier this year, Frederiksen hosted a green energy summit in western Danish city Esbjerg, at which the government signed an agreement with Belgium, the Netherlands and Germany for a ten-fold increase of offshore wind power capacity in the North Sea to 150 gigawatts by 2050.

On Monday, the Danish parliament voted through plans to increase production wind energy at a wind turbine park off Bornholm from 2 to 3 gigawatts. The facility will be connected to Germany.