Denmark

Denmark

Vestas net profit down 25% in 'competitive' market

Vestas recorded an increase in revenues for 2018, but its net profit was down year-on-year, reflecting how highly competitive wind power market has become, the Danish manufacturer stated.

Vestas received orders from 43 different counties last year
Vestas received orders from 43 different counties last year

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The turbine manufacturer’s revenue inched up from €9.9 billion in 2017 to €10.1 billion last year, with the Americas and Europe, Middle East and Africa (EMEA) accounting for the majority of this income.

However, Vestas’ €683 million net profit in 2018 was down 25% on the previous year due to lower average project margins and new product-related ramp-up costs in a competitive market, it stated.

It recorded its highest ever turbine order intake – 14,214MW – demonstrating a strong demand for wind power globally, it stated.

The manufacturer received orders from 43 different counties last year, with the Americas accounting for 44% of total order intake, EMEA 39% and Asia-Pacific 17%.

The value of Vestas’ service order backlog also increased by 18% to €14.3 billion last year.

It added that an increasing fleet of installed wind turbines positively impacted revenue in its service business.

In 2019, Vestas expects revenue to be between €10.75 billion and €12.25 billion, with service revenue growing by approximately 10% year-on-year.

It also expects to invest approximately €700 million this calendar year, but did not state where or on what this would be spent.

MHI Vestas

Vestas’ offshore wind joint venture with Japanese conglomerate Mitsubishi Heavy Industries, MHI Vestas, turned a net profit (€26 million) for the first time in 2018.

In June, the firm announced it was 'set to break even' after years of losses incurred due to establishing the manufacturer.

This was aided by a successful ramp-up of its V164 turbine, MHI Vestas stated, as the offshore specialist received 3,180MW of firm orders for its flagship platform.

It now has an order backlog of 3,838MW.

The manufacturer also installed 945MW of turbines in 2018 and signed conditional orders and preferred supplier agreements of 1.7GW.

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