Vestas - Interim financial report, second quarter 2018
15 Agosto 2018 - 1:30AM
Vestas - Interim financial report, second quarter 2018
Summary: Revenue on par with last year’s second
quarter while earnings and free cash flow decreased. Solid order
intake and combined order backlog at high level. Guidance for 2018
narrowed.
In the second quarter of 2018, Vestas generated
revenue of EUR 2,260m – an increase of 2 percent compared to the
year-earlier period. EBIT decreased by EUR 20m to EUR 259m. The
EBIT margin was 11.5 percent compared to 12.6 percent in the second
quarter of 2017 and free cash flow* amounted to EUR (173)m compared
to EUR (158)m in the second quarter of 2017.
The intake of firm and unconditional wind
turbine orders amounted to 3,807 MW in the second quarter of 2018.
The value of the wind turbine order backlog amounted to EUR 10.2bn
as at 30 June 2018. In addition to the wind turbine order backlog,
Vestas had service agreements with expected contractual future
revenue of EUR 12.8bn at the end of June 2018. Thus, the value of
the combined backlog of wind turbine orders and service agreements
stood at EUR 23.0bn – an increase of EUR 2.8bn compared to the
year-earlier period.
Vestas narrows the 2018 guidance on revenue to
range between EUR 10.0bn and EUR 10.5bn (compared to previously EUR
10.0bn-11.0bn), and on EBIT margin to 9.5-10.5 percent (compared to
previously 9-11 percent). Total investments* are still expected to
amount to approx. EUR 500m, and free cash flow* is expected to be
minimum EUR 400m in 2018. The adjustments are based on improved
visibility for the remainder of the year.
Group President & CEO Anders Runevad said:
“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 percent year over year,
contributing to the continued growth of our order backlog to an
all-time high. In the second quarter, price per MW stabilised
around the levels in recent quarters, but continues to impact
short-term results. External factors such as existing and potential
tariffs, however, are creating some uncertainty in the industry. In
this environment, I am very pleased that Vestas continues to
deliver best-in-class margins and achieved a 17 percent organic
growth in service, while free cash flow is negative because
activity levels in 2018 will be back-end loaded. 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.”
Key highlights
Strong order intakeOrder intake of 3.8 GW; an
increase of 43 percent year over year, leading to all-time high
order backlog.
EBIT of EUR 259mEBIT margin at 11.5
percent.
Good service performance Organic revenue growth
of 17 percent, and EBIT margin of 25 percent.
Free cash flowFree cash flow negative as a
result of a back-end loaded activity level in the year.
Share buy-back programme New EUR 200m share
buy-back programme launched.
Outlook 2018Guidance for 2018 narrowed for
revenue and EBIT margin based on improved visibility.
*) Excl. the acquisition of Utopus Insights, Inc., any
investments in marketable securities, and short-term financial
investments.
Information meeting (audiocast)
Today, Wednesday 15 August 2018 at 10 a.m. CEST
(9 a.m. BST), Vestas will host an information meeting via an
audiocast. The audiocast will be accessible via
vestas.com/investor.
The meeting will be held in English and
questions may be asked through a conference call.
The telephone numbers for the conference call
are:
Europe: +44 203 008
9806USA: +1 855 83159
44Denmark: +45 3544 5579
Presentation material for the information
meeting will be available at vestas.com/investor approximately one
hour before the meeting.
Contact details
Vestas Wind Systems A/S, Denmark Patrik Setterberg, Vice
President, Investor RelationsTel: +45 6122 1913
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