Vestas lowers guidance on revenue and investment

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Vestas has reported revenue of EUR 3.536 billion in the second quarter of 2021 – in line with the year-earlier period.

Vestas said EBIT before special items increased by EUR 67 million to EUR 101 million. This resulted in an EBIT margin before special items of 2.9 percent, compared to 1.0 percent in the second quarter of 2020, Vestas said.

The quarterly intake of firm wind turbine orders amounted to 5,290 MW. The value of the wind turbine order backlog was EUR 21.2 billion as at 30 June 2021.

In addition to the wind turbine order backlog, Vestas had service agreements with contractual future revenue of EUR 26.9 billion at the end of June 2021. The value of the combined backlog of wind turbine orders and service agreements stood at EUR 48.1 billion – an increase of EUR 13 billion compared to the year-earlier period.

Vestas is revising its full-year guidance. The expectations are a revenue of EUR 15.5-16.5 billion against the previous guidance of EUR 16-17 billion, including Service, with an overall EBIT margin before special items of 5-7 percent (previously 6-8 percent).

Total investments are now expected to be below EUR 1 billion in 2021 against the previous guidance of approx. EUR 1 billion.

Vestas President and CEO Henrik Andersen said: “Vestas underlined our leading position though the first half of the year has been slower than anticipated due to supply chain constraints in key markets.”

Vestas said service business and wind turbine order intake grew 23 percent and 28 percent respectively year-over-year, which resulted in an all-time high order backlog of more than EUR 48 billion.

Vestas said revenue dropped to EUR 5.498 billion for the first half of the year from EUR 5.776 billion in H1 2020. Vestas revenue from offshore business was EUR 892 million (–5 percent) primarily due to lower onshore wind turbine deliveries mainly in the USA and as well impacted by supply chain constraints.

Wind turbine order intake amounted to 5,290 MW worth EUR 4.5 billion in the second quarter of 2021 against 4,148 MW worth EUR 3.2 billion in Q2 2020, an increase of 28 percent mainly contributed by the EMEA (Europe, the Middle East, and Africa) region.

The average price per MW was EUR 0.84 million in the second quarter of 2021 vs EUR 0.78 million in Q2 2020, a positive development impacted by the two offshore orders which represented an average price of EUR 1.18 million.

Vestas said the average selling price was 0.79 EUR/MW for onshore.

Deliveries to customers amounted to 3,767 MW in the second quarter of 2021 (Q2 2020: 4,020 MW), a decrease driven mainly by the US market with a high level of deliveries in the second quarter of 2020. The offshore business contributed with 589 MW in the second quarter of 2021 from deliveries in the United Kingdom

Wind turbine order backlog at the end of the second quarter of 2021 amounted to 26,334 MW worth EUR 21.2 billion against 22,183 MW worth EUR 16.2 billion for 30 June 2020, an increase of 31 percent in value. Of the backlog end of June 2021, EUR 4.2 billion relates to offshore wind power projects mainly in Europe, but also in Asia Pacific.

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