In the third quarter of 2019, Vestas generated revenue of EUR 3,646m – an increase of 30 percent compared to the year-earlier period. EBIT before special items increased by EUR 153m to EUR 429m. The EBIT margin before special items was 11.8 percent compared to 9.8 percent in the third quarter of 2018, and free cash flow* amounted to EUR 205m compared to EUR (223)m in the third quarter of 2018.
The intake of firm and unconditional wind turbine orders amounted to 4,738 MW in the third quarter of 2019.
The value of the wind turbine order backlog amounted to EUR 16.5bn as at 30 September 2019. In addition to the wind turbine order backlog, Vestas had service agreements with expected contractual future revenue of EUR 16.3bn at the end of September 2019. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 32.8bn – an increase of EUR 9.1bn compared to the year-earlier period.
Vestas maintains its 2019 guidance on revenue of EUR 11bn-12.25bn, EBIT margin before special items of 8-9 percent, and total investments* of approx. EUR 800m.
Group President & CEO Henrik Andersen said: “Vestas’ performance in the third quarter of 2019 was in line with expectations with a 30 percent increase year-over-year in revenue driven by all regions, reflecting unprecedented high activity levels. Our order backlog increased to a record-high EUR 32.8bn, which corresponds to a 38 percent increase year-over-year and underlines the continued strong global demand for Vestas’ wind energy solutions. Although our Service business continued to grow with high margins and the average selling price was stable in the quarter, our profitability remains impacted by tariffs and increased execution costs. With an order intake of more than 13 GW already in 2019 and a very busy 2020 ahead, we continue our relentless focus on execution and profitability, which enable us to sustain our competitiveness and lead the way towards a sustainable planet”.
Key highlights
Increased order intake and all-time high order backlog
4.7 GW of order intake in Q3; combined backlog up 38 percent YoY.
Total revenue of EUR 3,646m driven by all regions
30 percent increase compared to Q3 2018.
EBIT of EUR 429m
EBIT margin at 11.8 percent.
Strong service performance
Revenue growth of 8 percent, and EBIT of EUR 125m.
Share buy-back programme
EUR 200m share buy-back programme launched to adjust the capital structure
Outlook 2019
Unchanged guidance for revenue, EBIT margin, and investments; service revenue upgraded.
*) Excl. the acquisition of SoWiTec Group GmbH, any investments in marketable securities, and short-term financial investments.
The Board of Directors of Vestas Wind Systems A/S has decided to initiate a share buy-back programme of up to DKK 1,500m (approx. EUR 200m) to be executed during the period 7 November 2019 to 31 December 2019.
The share buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors by the annual general meeting in April 2019, which authorises Vestas to acquire treasury shares at a nominal value not exceeding 10 percent of the share capital at the time of the authorisation.
The share buy-back programme will be executed in accordance with Regulation No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (MAR) and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (the “Safe Harbour” rules).
Purpose
The purpose of the share buy-back programme is to adjust Vestas’ capital structure and to meet obligations arising from share-based incentive programmes to employees of Vestas.
At Vestas’ annual general meeting in 2020, a resolution will be proposed by the Board of Directors that shares acquired, which are not used for hedging purposes of share-based incentive programmes, will be cancelled.
Time frame
The share buy-back programme will run from 7 November 2019 to 31 December 2019.
Terms
Vestas has appointed SEB as lead manager for the share buy-back programme. SEB will make its own trading decisions independently of and without influence or involvement from Vestas.
Under the share buy-back programme, Vestas may repurchase shares up to a maximum amount of DKK 1,500m, and no more than 18,633,606 shares, corresponding to 9.4 percent of the share capital of Vestas Wind Systems A/S.
No shares may be bought back at a price exceeding the higher of i) the price of the last independent trade and ii) the highest current independent bid at the trading venue, on which the purchase is carried out, at the time of trading.
The maximum number of shares that may be purchased on each trading day may not exceed 25 percent of the average daily trading volume of shares on the trading venue, on which the purchase is carried out, over the last 20 trading days prior to the date of purchase.
Prior to the share buy-back, Vestas holds 1,256,590 treasury shares, equal to 0.6 percent of the share capital.
Vestas is entitled to suspend or stop the programme at any time subject to a disclosure of a company announcement.
On a weekly basis, Vestas will issue an announcement in respect of transactions made under the programme.
