Vestas increases revenue by 67% despite “challenging circumstances”
Vestas has increased its revenue by 67% in the second quarter to a total of EUR 3.5 billion. While the pandemic is creating some difficulties, the turbine manufacturer is confident about the remainder of 2020 and therefore the company’s outlook of EUR 14-15 billion in revenue remains unchanged.
While the company’s income increased sharply, the operating result decreased from EUR 94 million last year, to EUR 34 million this quarter. The decrease was primarily a result of extraordinary warranty provisions made in the quarter of EUR 175 million, covering a specific repair and upgrade of a confined number of blades already installed.
The quarterly intake of firm and unconditional wind turbine orders amounted to 4,148 MW. The value of the wind turbine order backlog was EUR 16.2 billion as of 30 June 2020. In addition to the wind turbine order backlog, Vestas also has service agreements with expected contractual revenue of EUR 18.9 billion, meaning Vestas’ total backlog amounts to EUR 35.1 billion, which reflects an increase of more than 10% compared to last year.
Based on the results for first half of 2020, Vestas has issued new guidance for 2020. Full-year revenue is unchanged at EUR 14-15 billion, while the EBIT margin is adjusted downwards from 7-9 to 5-7%.
“The Covid-19 pandemic continued to impact the renewable energy industry and the global economy in the second quarter of 2020. In these challenging circumstances and without state aid, Vestas’ almost 26,000 employees have performed strongly, growing our revenue by 67 percent compared to the same quarter last year”, says CEO Henrik Andersen.
He continued: “Service continued to grow with high margins in the quarter and played a key role in ensuring stable and renewable energy supply during lockdowns across the globe. The global pandemic and economic downturn will continue to create uncertainty in 2020, but we remain confident in our ability to ensure business continuity across our value chain.”