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Danish renewable energy company Vestas has announced its financial results for 2018 this morning.

Vestas’ revenue for the year stood at $11.5 billion (€10.1bn) in 2018, an increase from just under €10bn in 2017. Service revenue stood at €1.7bn in the year, a 10% increase from €1.5bn in the previous year.

However, gross profit decreased from just under €2bn in 2017 to €1.6bn in 2018, driven by lower average margins in power solutions. Net profit is also down by 24%, from €894 million in 2017 to €683m.

Vestas’ order intake increased from 11,176MW in 2017 to 14,214MW in 2018, increasing across all regions. Of the 14,214MW installed in 2018, the Americas accounted for 6,271GW, a 25% increase from 2017. Europe, the Middle East and Africa (EMEA) increased by 25% to 5,599MW and Asia Pacific stood at 2,344MW, a 38% increase.

The total order backlog from the year was €26bn, with €11.9bn from wind turbines and €14.3bn from services.

Vestas Group president and CEO Anders Runevad said: “In 2018, wind energy manifested its position as the cheapest source of electricity in many parts of the world, creating a tremendous long-term growth outlook for the industry and a highly competitive environment short-term.

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“As the industry continued to mature and became mainstream, Vestas met its 2018 guidance and clearly led the industry on all key parameters, including highest ever order intake of 14.2 GW across 43 countries, all-time high order backlog of more than €26bn, and record-high service revenue and margins.

“Together with the continued underlying stabilisation in pricing and our strong focus on efficiency and cost management, we sustained and strengthened the foundation that enables us to execute a very busy 2019 as well as develop the sustainable energy solutions of the future.”

Vestas expect its profits to rise to between €10.8 and €12.3bn in 2019, with investments rising to €700m in the year.