Vestas Quarterly Figures 02/2021: Revenue Flat - EBIT Up - Outlook Adjusted
Aarhus, Denmark - Vestas has presented its figures for the second quarter of 2021 (Q2 2021). Revenue is stable, EBIT increases significantly and the combined order backlog reaches a new record high as of 30 June 2021. The share nevertheless gets under selling pressure.
Lower onshore activities, supply chain bottlenecks and cost inflation weigh. Danish wind energy giant Vestas reported Q2 2021 revenue of 3.536 bn euros (bn euros), almost exactly the same as last year (Q2 2020: 3.541 bn euros). According to Vestas, revenue is impacted by lower onshore activities and ongoing supply chain constraints.
EBIT before special items climbed almost 200 per cent to EUR 101 million (Q2 2020: EUR 34 million). However, analysts had expected a significantly higher EBIT of EUR 170 million. The EBIT margin before special items was 2.9 per cent, compared to 1.0 per cent in Q2 2020. "This increase was primarily driven by underlying improved operations and execution, but hampered by the continued cost inflation impacting global industrials," said Vestas Group President and CEO Henrik Andersen.
Free cash flow excluding acquisitions of subsidiaries, joint ventures, associates and financial investments was EUR 183 million, compared to a negative EUR 106 million in Q2 2020, leaving a profit for the period of EUR 90 million for Vestas (Q2 2020: negative EUR 5 million).
The quarterly order intake of firm and unconditional orders for wind turbines was 5,290 MW, significantly above the previous year (Q2 2020: 4,148 MW). The value of the wind turbine order backlog as at 30 June 2021 was EUR 21.2 bn (30 June 2020: EUR 16.2 bn). In addition to the wind turbine order backlog, Vestas had service agreements with expected future contractual revenues of EUR 26.9 bn at the end of June 2021 (30.06.2020: EUR 18.9 bn). As a result, the value of the combined wind turbine and service contract order backlog reached a new record high of EUR 48.1 bn (30.06.2020: EUR 35.1 bn), an increase of EUR 13.0 bn compared to the same period last year.
Full-year forecast to be adjusted. Due to supply chain constraints, cost inflation and restrictions in key markets due to COVID-19, which Vestas believes will continue to have an impact in the second half of the year, the wind turbine manufacturer is revising its full-year guidance. The expectations are now a revenue of EUR 15.5-16.5bn (previously EUR 16-17bn), including Service, with an overall EBIT margin before special items of 5-7 percent (previously 6-8 percent).
Vestas share under pressure.
The Vestas figures do not go down well with investors. The Vestas share loses significantly this morning. Currently, the share price of the RENIXX group is down 6.08 per cent at 31.66 euros (09:26 a.m., 11.08.2021, Stuttgart Stock Exchange). Over the year, the Vestas share price is currently down by around 20 percent.
Source: IWR Online, 11 Aug 2021