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Vestas records Q1 loss due to Covid-19

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Vestas has reported loss of €54 million, a decrease of €97 million from the previous year’s €43 million profit, as the coronavirus hit its supply chain.

The quarterly intake of firm and unconditional wind turbine orders amounted to 3,311 MW. The value of the wind turbine order backlog was €15.9 billion as of March 31, 2020.

In addition to the wind turbine order backlog, at the end of March 2020, Vestas had service agreements with expected contractual future revenue of €18.2 billion. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at €34.1 billion.

The company generated revenue of €2,23 million in the first quarter of 2020, compared to €1,73 million in the year-earlier period.

The continuing uncertainty as regards the full impact of COVID-19 makes Vestas maintain the suspension of the 2020 guidance.

“In the first quarter of 2020, the global demand for wind energy remained strong in spite of the COVID-19 pandemic’s continuing impact on societies and operations across all continents. In this environment, Vestas delivered increased revenue and order intake year on year, continued strong Service performance, and a record high order backlog of more than €34 billion that provides us with stability in the current period of high uncertainty. In line with our expectations, our EBIT margin in the first quarter was negatively impacted by the delivery of low-margin projects, while we also incurred increased execution costs from logistical challenges and supply chain bottlenecks, which were further amplified by the pandemic. Across the company, we have done well to ensure business continuity during the pandemic, but the uncertainty around the full-year impact prevails, and our guidance therefore remains suspended. As the global pandemic and economic crisis move into their next phase, Vestas continues to ensure business continuity and that renewables become a key part in restarting the global economy.”

Henrik Andersen, group president & CEO.
Anela Dokso

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