Published on August 19th, 2015 | by Joshua S Hill0
Vestas Wind Beats Expectations With Second Quarter Financials
August 19th, 2015 by Joshua S Hill
Vestas wind reported increased revenue, earnings, and free cash flow in the second quarter of 2015, including its seventh straight quarterly profit.
The Danish wind turbine manufacturer released its interim financial report for the second quarter of 2015 on Wednesday, highlighting “revenue, earnings, and free cash flow increased compared to the second quarter of 2014.” Specifically, Vestas Wind generated revenue of EUR 1,749 million, a 30% increase over Q2’14, with EBIT before special items increasing by EUR 41 million up to EUR 145 million. EBIT margin before special items was 8.3%, with free cash flow increasing by EUR 204 million, up to EUR 183 million, coming out of a 21 million deficit in Q2’14.
Vestas took in 3,018 MW worth of firm and unconditional wind turbine orders in the quarter, with the value of the company’s wind turbine order backlog amounting to an impressive EUR 8.8 billion, as of 30 June, 2015. Vestas also has service agreements with contractual future revenue of EUR 8.1 billion, bringing the combined backlog of orders and service agreements up to EUR 16.9 billion, an increase of EUR 3 billion compared to Q2’14.
“Vestas continued to execute well on our strategy in the second quarter of 2015, delivering a strong result on our key financial and operational parameters,” said Group President & CEO Anders Runevad. “Order intake was particularly strong, and with a combined order backlog of EUR 16.9bn we are well-positioned for the future. I am very pleased with our employees’ performance across the globe, which secures Vestas’ position as the wind industry leader. The profitable growth strategy is firmly on track as we leverage our key strengths – global reach, technology & service leadership, and scale.”
Bloomberg Business noted that Vestas’ Q2’15 performance beat out expectations, most likely helped by a 56% increase in orders in the second quarter.
Subsequently, Vestas maintained its full-year guidance of revenue at a minimum of EUR 7.5 billion, an EBIT margin before special items of a minimum of 8.5%, total investments of approximately EUR 350 million, and free cash flow of a minimum of EUR 600 million.