Vestas ups outlook but sees US market blowing colder

Danish wind turbine maker Vestas Wind Systems on Tuesday raised its annual revenue and profit forecast but disappointed investors by saying some US projects could take longer than expected.

Vestas ups outlook but sees US market blowing colder
Photo: Malte Kristiansen/Scanpix
“The upgrades are based mainly on improved delivery visibility for the remainder of the year,” the company said in a statement.
Vestas upgraded its revenue guidance for this year to between €10 and €10.5 billion ($11 billion to $11.6 billion) from a minimum of €9.5 billion.
The company said it now believes the margin on earnings before interest and taxes (EBIT) before special items will be between 13 and 14 percent, rather than at least 12.5 percent.
The group had already raised its forecasts in August.
Net profit jumped 50 percent in the third quarter to 309 million euros, as revenue climbed 37 percent to €2.9 billion.
“Revenue and earnings are up strongly, as are deliveries across all regions,” chief executive Anders Runevad said in a statement. “Order intake is up 17 percent, while combined turbine and service order
backlog declined this quarter, largely due to high turbine delivery activity.” 
But after gaining in early trading, shares in Vestas slipped into the red as chief financial officer Marika Fredriksson suggested business in the US could slow after Washington lawmakers in December last year decided to extend a wind power production tax credit.
The move gave US lawmakers more time to place their orders, Fredriksson said on a conference call.
The stock was down by six percent in early afternoon trading on the Copenhagen bourse, where the main index was 0.5 percent lower.

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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.