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Vestas' Q3 profit jumps 70% y/y

The Tres Mesas Phase III wind park in Mexico. Image source: Twitter, @fgcabezadevaca

November 7 (Renewables Now) - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) on Thursday posted a 70% year-on-year surge in third-quarter net profit to EUR 303 million (USD 336m) as revenue rose 30%.

Earnings before interest and tax (EBIT) before special items increased to EUR 429 million from EUR 276 million, with EBIT margin before special items climbing to 11.8% from 9.8% a year back.

Group president and CEO Henrik Andersen commented that the quarterly results align with the company’s expectations and noted that the 30% revenue growth was driven by all regions and reflects “unprecedented high activity levels.”

The following table contains more details about Vestas’ financial performance in the third quarter and first nine months of 2019.

Figures in EUR million, except percentages Q3 2019 Q3 2018 9-mo 2019 9-mo 2018
Revenue 3,646 2,811 7,497 6,765
Gross margin (%) 16.9 15.5 15.4 16.7
EBITDA before special items 565 386 989 980
EBIT before special items 429 276 600 661
EBIT 429 236 600 621
Profit for the period 303 178 418 464

In July-September 2019, Vestas’ intake of firm and unconditional wind turbine orders reached 4,738 MW, up from 3,261 MW a year earlier, and its value rose to EUR 3.5 billion from EUR 2.5 billion.

As at end-September 2019, the value of the wind turbine order backlog was EUR 16.5 billion. The company also had service agreements with expected contractual future revenue of EUR 16.3 billion, meaning that the combined backlog of wind turbine orders and service agreements was up by EUR 9.1 billion year-on-year to a record-high EUR 32.8 billion.

The company retained its forecast for full-year revenue of EUR 11 billion-12.25 billion, EBIT margin before special items of 8%-9% and total investments of about EUR 800 million.

(EUR 1.0 = USD 1.108)

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