Wind energy boom helps boost revenue at Danish firm

Leading Danish wind developer Vestas has posted revenue of 2.2 billion euros in the second quarter of 2018.

The interim results released today beat forecasts and led to a 7 per cent jump in the company’s share price.

The figures also show an order intake now at 3.8 gigawatts, an increase of 43 per cent on the previous year. The all-time high backlog represents a value of 10.2 billion euros, and combined with service agreements in place pushes the value to 23 billion euros in future earnings.

Vestas’ President and CEO Anders Runevad attributed the good news to the maturity of the wind energy market: “In the first half of 2018, the wind industry strengthened its position as the cheapest form of energy generation in many markets, which drove strong global demand. This development saw Vestas’ second quarter order intake increase 43 per cent year over year, contributing to the continued growth of our order backlog to an all-time high.”

Mr Runevad has helped turn the company around since taking up the top job in 2013. At the time, Vestas was operating at a net loss of 62 million euros.

Data released by the Global Wind Energy Council earlier this year showed the technology was in rude health; worldwide installations hit a massive 52 gigawatts in 2017, fuelled by declining costs and the push for cleaner forms of electricity.

“With long-term perspectives for renewable energy getting stronger, Vestas continues to effectively manage its costs and invest in the solutions that together will help us lead the global energy transition,” he added. 

Total investments are expected to be around 500 million euros this year due to a flurry of activity. Vestas remains the world’s largest supplier of wind turbines, but faces stiff competition since the merger of Siemens and Gamesa last year.

 

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