UPDATED - Vestas' Q3 revenues jump by 31%, profit down by 4%

Source: Vestas' Q3 report.

Danish turbine maker Vestas Wind Systems A/S (CPH:VWS) today announced a 31% year-on-year increase in third-quarter revenues, but a slightly lower profit.

The net result for the period was a profit of EUR 290 million (USD 338.4m), down from EUR 303 million a year ago, while revenues reached EUR 4.77 billion.

The wind energy company reported a 44% on-the-year increase in deliveries to customers in the quarter. These amounted to 5.99 GW, driven mainly by the Americas region, and marked a new quarterly record.

The table below contains more information on Vestas’ financial performance so far this year and its full-year forecast, confirmed today by the company.

Results in EUR million	Q3 2020	Q3 2019	9-mo 2020	9-mo 2019	2020 forecast
Revenue	4,770	3,646	10,546	7,497	14,000-15,000
Gross margin (in %)	12.8	16.9	9.5	15.4	N/A
EBITDA before special items	575	565	860	989	N/A
EBIT before special items	412	429	392	600	N/A
EBIT margin before special items (in %)	8.6	11.8	3.7	8.0	5-7
Profit for the period	290	303	205	418	N/A
Free cash flow	546	265	(277)	(510)	N/A

The gross margin for the period contracted by 0.8 percentage points from a year before, when one-off effects benefitting the prior-year result are excluded. This decrease was due to increased ordinary warranty provisions and logistical challenges and supply-chain bottlenecks, amplified by the COVID-19 pandemic, Vestas explained.

In the third quarter, firm and unconditional turbine orders secured by the company hit 4.23 GW. Vestas’ combined backlog of turbine orders and service agreements stood at EUR 33.9 billion at the end of September.

(EUR 1 = USD 1.17)

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