Danish wind energy giant Vestas has seen its shares skyrocket on the back of a solid first quarter earnings report, published Friday.
Vestas reported increases on earnings, but a decrease on revenue and free cash flow, for the first quarter. However, a strong order intake and a backlog reaching its highest level ever recorded helped the company publish a strong quarter earnings report, which investors took as a good sign, with the company’s shares jumping from DKK 445 to sit (at time of writing) at around DKK 463 (around US$70).
According to the company’s press release, Vestas generated revenue of €1,464 million in the first quarter, a decrease of 4% over the same quarter a year earlier. However, orders taken in during the first quarter sat at an impressive 2,403 MW, increasing the value of the company’s backlog to €8.6 billion as of the end of the quarter. Vestas also had service agreements providing future revenue of €9.4 billion as of the end of the quarter, thus equating to a combined backlog of turbine orders and service agreements of €18 billion — an increase of €3 billion compared to the same period a year earlier.
“Vestas delivered record-high first quarter order intake as well as our largest ever combined wind turbine and service order backlog,” said Anders Runevad , Group President & CEO. “EBIT margin also improved, while free cash flow, although at negative levels, was in line with expectations as we build up inventory preparing for a busy remainder of 2016.”
Vestas maintained its 2016 guidance, with a minimum revenue of €9 billion, EBIT margin before special items of minimum 11%, total investments of approximately €500 million, and free cash flow of a minimum of €600 million.
Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.