Danish wind turbine manufacturer Vestas Wind Systems A/S (CPH:VWS) remained in the red in the first quarter of 2021 as COVID-19 restrictions in strategic markets and extraordinary events hit its EBIT margin.
The loss before interest and tax before special items was EUR 71 million (USD 85.4m), widening from EUR 54 million in the first quarter of 2020, and the EBIT margin before special items was negative 3.6%, compared to negative 2.4% a year ago. Vestas saw logistical challenges and supply chain bottlenecks amplified in the quarter by measures to contain the spread of the virus and other events.
Deliveries to customers in the quarter amounted to 1,925 MW, down from 2,228 MW in the first quarter of 2020. The decrease was mainly due to significant declines in the US and Australian markets. Brazil, Germany, China, Mexico and France were the top five markets for first-quarter deliveries.
Vestas' revenues in the reporting period decreased by 12% to EUR 1.96 billion. More details are available in the table.
| Results in EUR million |
Q1 2021 |
Q1 2020 |
Full 2020 |
| Revenue |
1,962 |
2,235 |
14,819 |
| EBITDA before special items |
136 |
97 |
1,391 |
| EBIT before special items |
(71) |
(54) |
750 |
| EBITDA |
136 |
87 |
1,382 |
| EBIT |
(71) |
(112) |
698 |
| Profit for the period |
(57) |
(80) |
771 |
| Free cash flow |
(898) |
(920) |
-- |
“Following a strong end to 2020, continued impact from COVID-19 and lower activity levels affected Vestas’ results for the first quarter of 2021,” commented President & CEO Henrik Andersen.
At the end of March, Vestas’ combined backlog of wind turbine orders and service agreements stood at EUR 44.7 billion, up by EUR 10.6 billion from March 2020 and an all-time high result. The company secured over 2 GW of firm and unconditional turbine orders in the quarter.
“Although we have started the year a bit slower than expected, we remain positive we will catch up throughout the rest of the year by maintaining a strong focus on executing our 2021 goals and mid-term strategic priorities,” Andersen continued.
Vestas affirmed its full-year guidance, expecting revenues of EUR 16 billion to EUR 17 billion, an EBIT margin before special items of 6%-8% and a service EBIT margin of 24%. Total investments are seen to reach EUR 1 billion this year.
(EUR 1 = USD 1.2)
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Vestas wind turbines in Germany. Image by: Vestas Wind Systems A/S.
