Vestas wind power company earned 700 million euros net in 2019, up 2.4%

The Danish company Vestas Wind Systems, dedicated to the manufacture and sale of wind turbines, earned 700 million euros net in 2019, 2.4% more than the previous year, according to the balance presented today by the company.

Operating profit improved 9% year-on-year, up to 1,004 million euros.

Revenue amounted to 12,147 million, 20% more than a year earlier.

Danish wind power achieved a record order volume of 17.9 gigawatts, 26% better, more than half from North and South America, especially from the United States and Brazil.

The power produced was 12,618 megawatts, 18% more, and the installed power, 12,884 megawatts, 19% better.

Vestas, which expects the company’s high level of activity to be maintained in 2020, proposed dividends of 7.93 Danish crowns (1.06 euros) per share.

The wind turbine order intake increased year-on-year by 3,663 MW to 17,877 MW in 2019 and the value of the service order backlog increased by EUR 3.5bn to EUR 17.8bn.

For 2020, Vestas expects revenue to range between EUR 14bn and 15bn, including service revenue, which is expected to grow by approx. 7 percent. Vestas expects to achieve an EBIT margin before special items of 7-9 percent, with a service EBIT margin of approx. 25 percent. Total investments** are expected to amount to approx. EUR 700m in 2020.

As a result of the performance during the year, the Board of Directors of Vestas Wind Systems A/S proposes to the Annual General Meeting that a dividend of DKK 7.93 per share be distributed to the shareholders, compared to DKK 7.44 last year, and equivalent to 30.0 percent of the net profit for the year.

“Wind energy manifested its position as a leading global energy source in 2019, driving Vestas’ order intake to a record 17.9 GW, 20 percent growth in revenue and expected high activity levels in the coming years. In an extraordinarily busy year, Vestas extended its industry leadership, met its guidance on all parameters and scaled the company to deliver on our highest-ever order backlog of EUR 34bn. Once again, our Service business delivered year-on-year growth and improved profitability, underlining its strategic importance in a tough market. In 2019, the industry thus faced challenges from trade wars and tariffs, causing execution costs to increase, which we expect to continue in an even busier 2020. Together with our customers and partners, everyone at Vestas worked vigorously to create the momentum to finish 2019 strongly, and we must continue this momentum to achieve our goals for 2020. As we continue to lead the transition towards a world powered by sustainable energy, we remain focused on executing our strategy and pushing the industry to higher levels on technology, profitability and sustainability,” says Henrik Andersen, Group President & CEO.