Feb 8 (Renewables Now) - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) on Wednesday posted a 2016 net profit of EUR 965 million (USD 1.03bn), up 40.9% year-on-year.
“I am extremely pleased with Vestas’ 2016 performance, delivering a record year on revenue, EBIT margin, net profit, free cash flow, order intake, and combined order backlog,” group president and CEO Anders Runevad said, adding that all regions contributed to the solid results.
The improved performance was driven by the stable execution of order books for wind turbines and service. Both continued to grow in 2016.
Revenue in 2016 rose by 22% to EUR 10.2 billion, landing within the updated guidance range from November 2016. This year, Vestas expects to generate between EUR 9.25 billion and EUR 10.25 billion in revenue, including service revenue, which is seen to grow.
The table gives details about other key figures from 2016.
|EBITDA before special items (in EUR)||1.83 billion||1.21 billion|
|EBIT before special items (in EUR)||1.42 billion||860 million|
|EBIT margin before special items||13.9%||10.2%|
Free cash flow before investments in marketable securities and short-term financial investments improved by EUR 517 million to EUR 1.56 billion. Total net investments amounted to EUR 617 million.
For 2017, Vestas forecasts EBIT margin before special items of 12% to 14%, total investments of about EUR 350 million and free cash flow of at least EUR 700 million.
Vestas’ wind turbine order intake jumped to 10,494 MW in 2016 from 8,943 MW in 2015, while the value of the service order backlog increased by EUR 1.8 billion to EUR 10.7 billion. In terms of value, the order intake amounted to EUR 9.5 billion, up from EUR 8.2 billion.
The Europe, Middle East, and Africa (EMEA) region accounted for 49% of wind turbine orders, up from 43% in 2015. The Americas had a 41% share, down from 46%, with strong demand from the US market especially during December 2016.
At the end of the year, the order backlog stood at 9,530 MW, or EUR 8.5 billion, for a 9% year-on-year increase in terms of MW.
In view of the strong annual performance, Vestas’ board proposes an increase in the annual dividend to DKK 9.71 (USD 1.39/EUR 1.31) per share from DKK 6.82 apiece. This is equal to 30% of the net profit for 2016.
(EUR 1.0 = USD 1.065)
(DKK 10 = USD 1.432/EUR 1.345)