Vestas profits up 75% in 2015

DENMARK: Vestas pre-tax profits increased to €925 million in the 2015 financial year on the back of a strong order intake totalling almost 9GW.

Vestas orders reached almost 9GW in 2015
Vestas orders reached almost 9GW in 2015

Google Translate

Group revenue also increased from €6.9 billion in 2014 to more than €8.4 billion.

"In 2015, we executed well on our profitable growth strategy, delivering strong financial and operational results across the board and across the globe. Vestas met or exceeded its full-year 2015 guidance on revenue, EBIT margin, and free cash flow; and delivered double-digit margins and its highest ever net profit," said Vestas CEO Anders Runevad.

Runevad was particularly pleased with the company's performance in Finland and Poland in the last year.

For the second consecutive year, the board of directors has also recommended a dividend be paid to stakeholders. This year it is for DKK 6.82 (€0.91) per share, an increase from DKK 3.90 (€0.52) paid last year.

Focus on servicing

Vestas' investments for the year totalled €425 million and included the acquistion of servicing firm UpWind Solutions in the US.

For 2016, investments are expected to increase to €500 million, including the €88 million deal to buy German servicing specialist Availon, announced in January.

Both firms will help Vestas increase its servicing order backlog, which stood at €8.9 billion at the end of 2015. The acquisitions will also give the manufacturer the expertise to service turbines from other manufacturers.

Servicing is becoming an increasingly important part of Vestas' business, "a natural trend" in the market, said Runevad. The expansion in to servicing third-party turbines is also driven in part by a demand from its customers, he added.

In its outlook for 2016, Vestas is targeting revenue of €9 billion on the back of growth in servicing.


Runevad is unsurprised by the potential for continued market consolidation following the rumours Siemens is in discussions with acquiring or merging with Spanish OEM Gamesa. 

However, he is unmoved by the potential, deal which analysts suggest could form a manufacturer with up to 15% of the market share. Vestas has a "broad" and flexible portfolio of turbines with a global reach to compete with any potential merger, he said. 

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in