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August 11, 2021

Vestas reports second-quarter revenues of $4.1bn

As of 30 June, Vestas has service agreements with expected contractual future revenues of €26.9bn ($31.5bn) in place.

By Umesh Ellichipuram

Danish wind turbine manufacturer Vestas has reported revenues of €3.53bn ($4.1bn) in the second quarter of the year, roughly equal to its revenues in the same period of last year.

The company’s earnings before interest and taxes (EBIT) before special items increased by €67m ($78.5m) in the quarter to €101m ($118m).

Vestas witnessed a revenue growth of 23% in its Service segment in the quarter compared to the second quarter of last year, while its EBIT margin grew by 28.6%.

The company said that its total quarterly intake of firm and unconditional wind turbine orders came to 5,290MW. As of 30 June, its wind turbine order backlog was valued at €21.2bn ($24.8bn).

In light of these results, Vestas is revising its full-year guidance due to supply chain constraints, cost inflation and restrictions in key markets caused by the Covid-19 pandemic.

The company now expects revenues of €15.5bn ($18.1bn) to €16.5bn ($19.3bn), including revenues from its Service business. It had previously expected revenues of between €16bn ($18.7bn) and €17bn ($19.9bn).

It has also reduced its predicted EBIT margin before special items to between 5% and 7%, where previously it had expected a margin of between 6% and 8%.

Vestas Group president and CEO Henrik Andersen said: “In the second quarter of [the year], Vestas underlined our market-leading position, although the first half of the year has been slower than anticipated due to supply chain constraints in key markets.

“To reflect the challenges from cost inflation and the global environment we operate in, we have revised our guidance for [the year].

“We remain focused on executing our priorities for the year, which [will] enable us to deliver on our commitments, drive the energy transition and strengthen our market leadership.”

In June, Vestas secured a contract from DTEK Renewables to supply wind turbines for 372MW of the Tiligul wind project in Ukraine.

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