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Denmark

Denmark

Vestas boosts 2014 revenues

DENMARK: Vestas has posted strong financial figures for 2014 with revenue increasing 13.5% to €6.9 billion.

Vestas' revenues increased 13.5% in 2014
Vestas' revenues increased 13.5% in 2014

Europe and Africa provided 60% of the manufacturer's revenue and the Americas contributed 31%. The remaining 9% came from Asia.

Overall profit was reported at €392 million last year, compared to a loss of €82 million in 2013. Higher gross profits and lower fixed capacity costs were the main reasons for the improved earnings.

As a result of the strong results, the Vestas board will recommend a €0.52/share dividend to be paid to shareholders. It is the first time in over a decade that Vestas has recommended a dividend payout.

Its order intake also increased by 10% to 6.5GW and production and shipping increased by 36% to 6.1GW.

Vestas said its strong order intake was as a result of a strong performance in America and "double-digit" growth in Europe.

CEO Anders Runevad said, "We will continue to scale production up and down in accordance with the level of demand in the different regions.

"Building on our long-standing global presence, we will continue to pursue opportunities in markets where wind energy is set to expand."

Outlook

Outlook for 2015 was left a little reserved. Vestas is targeting a minimum €6.5 billion in revenue with an EBIT margin of 7% (8.1% in 2014). It is also planning to invest approximately €300 million in 2015 - in line with the €285 million in investments made this year.

When questioned by analysts about the conservative projections, Runevad said the figures were a "minimum guidance" as it was still very early in the year and events may cause the estimates to change.

He added the company was beholden to "normal business risks" such as market development, the ramp up of production and political uncertainty.

"We all depend on political decisions in this industry. They are hard to predict," he said.

Vestas senior vice president for communications and marketing Morten Albaek said: "We provided a minimum guidance which is based on what we know. And what we know today is we stand in the midst of February and there is still ten and a half months to go in the year.

"Vestas have always been heavy loaded in the second half of the year, especially in the fourth quarter. That means lots of our financial performances are dependent on how the second half, not least Q4, is playing out," Albaek added.

Runevad also praised the V164-8MW being developed as part of its offshore joint venture with MHI.

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