Vestas: Strong Performance Despite Pandemic

Vestas delivered a strong performance in a challenging environment without state aid: In the second quarter of 2020, Vestas generated revenue of EUR 3,541m – an increase of 67 percent compared to the year-earlier period. The order intake continues at high level with stable prices: Vestas has a firm order intake of 4.1 GW and an all-time high combined order backlog of more than EUR 35bn.

The quarterly intake of firm and unconditional wind turbine orders amounted to 4,148 MW. The value of the wind turbine order backlog was EUR 16.2bn as at 30 June 2020. In addition to the wind turbine order backlog, at the end of June 2020, Vestas had service agreements with expected contractual future revenue of EUR 18.9bn. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 35.1bn – an increase of EUR 3.6bn compared to the year-earlier period.

Based on the results for first half of 2020, Vestas now provides the market with new guidance. The outlook for full-year revenue is unchanged at EUR 14-15bn. The EBIT margin before special items is updated to range between 5 and 7 percent (initially 7-9 percent), including extraordinary warranty provisions of EUR 175m. Vestas’ total investments^*) are expected to be below EUR 700m in 2020 (initially approx. EUR 700m). This guidance, it should be emphasised, is based on assumptions that are subject to greater uncertainty than under normal circumstances, due to COVID-19.

Group President & CEO Henrik Andersen said: “The COVID-19 pandemic continued to impact the renewable energy industry and the global economy in the second quarter of 2020. In these challenging circumstances and without state aid, Vestas’ almost 26,000 employees have performed strongly, growing our revenue by 67 percent compared to the same quarter last year and achieving an order intake of 4.1 GW as well as a record high total order backlog of more than EUR 35bn. Service continued to grow with high margins in the quarter and played a key role in ensuring stable and renewable energy supply during lockdowns across the globe. The global pandemic and economic downturn will continue to create uncertainty in 2020, but we remain confident in our ability to ensure business continuity across our value chain and are therefore reintroducing guidance for 2020 with unchanged outlook for revenue of EUR 14-15bn, while the EBIT margin is updated to range between 5 and 7 percent.”