Vestas raises guidance as profit doubles

Danish wind turbine maker Vestas Wind Systems on Thursday raised its annual revenue and profit forecast for the second time this year as quarterly profit more than doubled.

Vestas raises guidance as profit doubles
Vestas will give one billion kroner back to shareholders. Photo: Henning Bagger/Scanpix
“I am very pleased that year-on-year for orders, Vestas is growing in all regions,” chief executive Anders Runevad said in a statement.
“With greater clarity on deliveries for the remainder of the year and a very solid financial position, we are raising our guidance.”
Net profit in the third quarter rose to 206 million euros ($224 million) from 102 million euros a year before, as revenue grew 17 percent to 2.12 billion euros.
“We generally see positive trends for renewable energy,” Runevad told Danish news agency Ritzau.
Amid a booming wind energy market, the Aarhus-based group also announced a 1.12 billion kroner (150 million euros, $163 million) share buy-back programme.
“Revenue and earnings are better than expected in the third quarter, driven by high prices for the turbines,” Alm Brand Markets analyst Michael Friis Jørgensen told Ritzau.
Vestas raised its 2015 revenue forecast to between 8.0 and 8.5 billion euros from a previous estimate of at least 7.5 billion euros. Stripping out one-off items, the profit margin before interest and taxes would be between nine and 10 percent, rather than 8.5 percent, it said.
Runevad took the helm in August 2013 after the company had posted nine quarterly losses in a row.
The Danish company was badly hit when the financial crisis prompted governments to cut subsidies for renewable energy, which combined with an ill-timed expansion plan and tough competition forced it to slash its workforce by almost a third.
Shares in Vestas were 4.9 percent higher in midday trading on the Copenhagen bourse, where the main index was up by 0.9 percent.

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Danish wind turbine giant Vestas looking offshore after strong results

Vestas, the global leader in wind turbines, posted stronger annual results Wednesday and said it was looking to expand crucial offshore operations with a giant new model.

Danish wind turbine giant Vestas looking offshore after strong results
Photo: Henning Bagger/Ritzau Scanpix

The Danish company reported a 10 percent rise in net profit to 771 million euros ($933 million) for 2020, even though its supply chain had been affected by the coronavirus pandemic.

Sales jumped 22 percent to a record 14.82 billion euros, a statement said.

One disappointing number was for orders however, which declined by eight percent to 12.7 billion euros in a sector where competition is stiff and global investment is growing.

Vestas has long been a leader in onshore turbines and must now catch up with offshore rivals such as the German/Spanish group Siemens Gamesa or the US multinational General Electric (GE).

“To lead the expansion of wind energy into becoming the dominant energy source, it is crucial for Vestas to become a leader in offshore wind,” the statement quoted president and chief executive Henrik Andersen as saying.

In October, Vestas spent 700 million euros to gain full control of the sea-based unit it launched in 2014 with the Japanese group Mitsubishi Heavy Industries.

This year, Andersen said the Danish company's focus “will be to fully integrate offshore (operations) and address executional challenges”.

Vestas unveiled a 15-megawatt offshore turbine design that it expects to begin installing in 2024.

For 2021, Vestas is targeting sales of 16-17 billion euros, which would represent a gain of eight to 15 percent.

In midday trading on the Copenhagen stock exchange, Vestas shares showed a drop of 3.9 percent to 1,227.50 kroner, while the OMX Nordic 40 index on which it is listed was 0.2-percent lower overall.