Danish wind turbine manufacturer Vestas is now feeling the heat of coronavirus pandemic and has suspended its guidance for the year 2020 amid disruptions faced in continuing its normal business operations.
The company, recently, revealed that the spread of the virus globally and the national measures implemented to contain it have eventually, however, caused disruptions to its manufacturing, supply chain, and installations.
However, it has taken measures to ensure the safety of its employees, since the outbreak of Covid-19, and reasonably mitigate the impact of the coronavirus pandemic on its operations, the company added.
On the Q1 results, it stated that preliminary numbers indicate that the results for the first quarter are in line with expectations and an aggregate order intake stood at 3.3 GW.
But, on the annual guidance, it stated that from the limited impact on this quarter seen in isolation, achieving the outlook for 2020 is still realistic. However, there is no longer adequate visibility for the rest of the year. Hence, the company is at the moment not able to confidently give guidance on its full-year performance.
The main reasons cited for not disclosing 2020 guidance was on the back of this uncertainty, especially in regard to the duration of the pandemic and the full extent of the consequences thereof globally.
However, Vestas optimistically added that as soon as it deemed that it is capable of giving new estimates for the full-year results, it will disclose updated guidance.
Commenting on the development, Henrik Andersen, Group President & CEO of Vestas, said that “everyone at Vestas is doing a tremendous job to keep each other safe and our operations running during the pandemic. The situation changes daily and my colleagues’ ability to adapt fast and follow our extensive safety measures have been key to keeping performance in the first quarter in line with expectations.”
“Unfortunately, the pandemic continues to spread and with no clear prognosis on when key wind markets such as the USA, Brazil and India will recover, we are suspending our guidance due to the poor visibility for the remainder of the year,” Andersen added.
Though, the company has assured its investors that the proposed dividend for 2019 will not be affected by the decision to suspend guidance.
Meanwhile, the company’s China factories have returned to normal operation and it is working to mitigate the impact of lost production time via its global footprint, including using the capacity in China to mitigate challenges in other parts of the world, where restrictions and disruptions are now seen to an increasing degree.