Vestas reached orders for 5,696 megawatts of wind power

Wind turbine manufacturer Vestas Wind Systems presented a net profit in the first half of 115 million euros, 60% less year-on-year.

Net operating profit (ebit) was reduced by 56% to 171 million.

The turnover between January and June amounted to 3,851 million, which represents a 2.6% drop compared to the same period of 2018.

The power produced was 6,120 megawatts and the installed power was 3,670 megawatts, 5% more and 16% more year-on-year, respectively.

Group President & CEO Henrik Andersen said: “In the second quarter of 2019, continued high demand for wind energy helped Vestas achieve a record-high order intake of 5.7 GW and 15 percent growth in Service revenue. Based on these strong sales results, our order backlog soared by EUR 8.5bn year-over-year to an all-time high of EUR 31bn, again demonstrating our global leadership in a highly competitive market. Together with our Offshore business’ increased profits, the first half of 2019 highlights the complementarity of our business model’s three main areas, creating a great long-term outlook for Vestas. Prices remained stable in the quarter, but further increases in tariffs, raw material prices and transport costs, continue to increase execution costs, causing our gross margin to decline compared to the same period last year. To finish the year as strongly as possible and prepare for high activity levels in 2020, we remain focused on executing our strategy and delivering an extraordinarily busy second half of 2019.”

In the second quarter Vestas earned 90 million euros net, 51% less, due to the reduction of margins in its technological division and external factors such as commercial tariffs, transport and the increase in raw material prices, the company said in your balance

Ebit also fell 51% year-on-year to 128 million euros.

The turnover amounted to 2,121 million, 6% less than in the same period last year.

The wind power produced was 3,375 megawatts and the installed power was 2,069 megawatts, 0.5% more and 5% more year-on-year, respectively.

Key highlights

Highest ever quarterly order intake and all-time high order backlog
5.7 GW of order intake in Q2 including first order for the new EnVentus platform

Total revenue of EUR 2,121m
Six percent decrease compared to Q2 2018

EBIT of EUR 128m
EBIT margin at 6.0 percent impacted by competitive markets, tariffs, and back-end loaded activity level

Strong service performance
Revenue growth of 15 percent, and EBIT margin of 28.4 percent

Increasing profit in MHI Vestas Offshore Wind
Net profit of EUR 22m; an underlying improvement of EUR 49m YoY

Outlook 2019
Guidance for 2019 narrowed for revenue and EBIT margin based on performance and improved visibility