Vestas Sees Revenue of €12.1 Bn in 2019, Projects Over €14 Bn for 2020

Vestas has issued its financial results for the year 2019 reporting that for the full year revenue amounted to EUR 12.1 billion

Vestas has issued its financial results for the year 2019. For the full year 2019, revenue amounted to EUR 12.1 billion, with the EBIT margin before special items were 8.3 percent, and total investments were EUR 729 million, all in line with the expectations.

The firm has stated that compared to 2018, revenue and earnings increased while free cash flow decreased. Whereas, order intake increased in 2019 compared to 2018, which saw the value of the combined order backlog increased to EUR 34 billion.  

Furthermore, the wind turbine order intake increased year-on-year by 3,663 MW to 17,877 MW in 2019 and the value of the service order backlog increased by EUR 3.5 billion to EUR 17.8 billion.

For 2020, the company expects revenue to range between EUR 14 billion and 15 billion, including service revenue, which is expected to grow by approximately 7 percent. Vestas expects to achieve an EBIT margin before special items of 7-9 percent, with a service EBIT margin of approximately 25 percent. Total investments are expected to amount to nearly EUR 700 million in 2020.

As a result of the performance during the year, the Board of Directors of Vestas Wind Systems A/S have proposed to the Annual General Meeting that a dividend of DKK 7.93 per share be distributed to the shareholders, compared to DKK 7.44 last year, and equivalent to 30 percent of the net profit for the year.

Henrik Andersen, Group President & CEO said that wind energy manifested its position as a leading global energy source in 2019, driving the firms’ order intake to a record 17.9 GW, 20 percent growth in revenue and expected high activity levels in the coming years. In an extraordinarily busy year, Vestas extended its industry leadership, met its guidance on all parameters and scaled the company to deliver on our highest-ever order backlog of EUR 34 billion.

“Once again, our Service business delivered year-on-year growth and improved profitability, underlining its strategic importance in a tough market. In 2019, the industry thus faced challenges from trade wars and tariffs, causing execution costs to increase, which we expect to continue in an even busier 2020. As we continue to lead the transition towards a world powered by sustainable energy, we remain focused on executing our strategy and pushing the industry to higher levels on technology, profitability and sustainability,” he added.