Vestas upgrades forecast on 50% profit increase

DENMARK: Vestas' gross profit increased to €591 million in Q3, up 52% year-on-year, causing the turbine maker to up its 2016 forecast for the second consecutive quarter.

Vestas order intake was up 17% in the third quarter
Vestas order intake was up 17% in the third quarter

Revenue at the Danish manufacturer increased 37% to €2.9 billion in the three months to the end of September, compared with the same period in 2015.

As a result, Vestas has increase its revenue forecast for 2016 to €10-10.5 billion — up from €9 billion at the start of the year.

Vestas experienced a better-than-expected first half of the year, resulting in the company enacting a €400 million share buy-back programme and upgrading the forecast for the first time this year.

The third quarter has continued in the same vein, as order intake increased to 1.8GW — from 1.5GW a year ago.

"Order intake is up 17%, while the combined turbine and service order backlog declined this quarter, largely due to high turbine delivery activity. With better visibility toward the end of the year, we are also upgrading the full-year guidance," said Vestas CEO Anders Runevad.

However, across the first nine months of the 2016, Vestas' order intake is down.

Over the first three quarters of 2015, Vestas received 6.28GW of orders, totalling €5.8 billion. In comparison, in the same period of 2016, orders totalled 5.96GW and €5.2 billion.

This is despite Vestas winning a 1GW order in Norway in February. In Q3, Vestas also received the first instalment of its 2GW framework deal to supply MidAmerican Energy's Wind XI project in Iowa, US.

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