Vestas – Interim financial report, second quarter 2017

Revenue, earnings, and free cash flow decreased compared to last year’s very strong second quarter of 2016. Solid order intake and combined order backlog at high level. Guidance for 2017 maintained.

In the second quarter of 2017, Vestas generated revenue of EUR 2,206m – a decrease of 14 percent compared to the year-earlier period. EBIT decreased by EUR 120m to EUR 279m. The EBIT margin was 12.6 percent compared to 15.6 percent in the second quarter of 2016 and free cash flow* amounted to EUR (158)m compared to EUR 330m in the second quarter of 2016.

The intake of firm and unconditional wind turbine orders amounted to 2,667 MW in the second quarter of 2017. The value of the wind turbine order backlog amounted to EUR 9.1bn at 30 June 2017. In addition to the wind turbine order backlog, Vestas had service agreements with an expected contractual future revenue of EUR 11.1bn at the end of June 2017. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 20.2bn – an increase of EUR 2.1bn compared to the year-earlier period.

Vestas maintains its 2017 guidance on revenue of EUR 9.25bn-10.25bn, EBIT margin before special items of 12-14 percent, total investments* of approximately EUR 350m, and free cash flow* of minimum EUR 700m.

Group President & CEO Anders Runevad said: “In a changing market, Vestas delivered another solid quarter with healthy earnings and maintained our leadership position. Our second quarter results showed improved order intake across all regions, increased order backlog, strong performance in service, and half-year revenue on par with 2016. Looking ahead, we need to continue to put all of our focus on effectively executing on our strategy.” 

 

*) Before investments in marketable securities and short-term financial investments, and incl. proceeds of EUR 99m from sale of office building facilities.

 

Key highlights

Increased order intake
Order intake in the quarter reached 2,667 MW.

Revenue of EUR 2,206m in Q2
Revenue in H1 2017 of EUR 4,091m – on par with H1 2016.

Solid earnings
Q2 2017 EBIT margin at 12.6 percent.

Strong service performance
Revenue increased 14 percent with an EBIT margin of 19.4 percent.

Share buy-back programme
EUR 600m share buy-back programme launched to adjust the capital structure.