Vestas Profit Beats Forecast

Posted by George Backwell
Wednesday, August 20, 2014
Offshore windfarm: Photo credit Hans Hillewaert

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling its turnaround from the brink of collapse has taken hold.

* Q2 earnings before special items 104 mln eur vs f'cast 63 mln
* Orders rise to 1,932 megawatt vs forecast 1,648
* Sees op profit margin pre special items at minimum 6 pct
* Shares up 2.7 pct, hit two-month high

Its shares opened up more than 5 percent on Wednesday, touching a two-month high of 290 Danish crowns, and were trading 2.7 percent higher at 282.6 crowns by 0715 GMT.

Vestas said earnings before special items jumped to 104 million euros ($138 million) from 12 million a year ago, compared to analysts' expectations of 63 million.

Orders rose to 1,932 megawatt (MW) against a forecast 1,648.

"The result is a lot better than expected and it is due to a gross margin of 19 percent," said Jacob Pedersen, analyst at Sydbank. "A gross margin of 19 is unusual for Vestas ... This is exactly what we want to see from Vestas."

The group said it now expects its operating profit margin before special items to increase to a minimum of 6 percent from its previous guidance of at least 5 percent and from 3.5 percent in 2013.

Revenue, which reached 6.1 billion euros in 2013, is still expected to be at least 6 billion euros in 2014, the company said.

Vestas has had to shed a quarter of its workforce, closed plants and sold unprofitable businesses in a far-reaching restructuring since 2011, after overcapacity and cut-throat competition hammered many renewable energy companies.

After a five-fold increase in 2013, Vestas shares have risen more than 70 percent this year.

By Shida Chayesteh

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Drydocks World & Maritime World Win IMC Excellence Awards

Drydocks World and Maritime World have won the Excellence Award given by the International Maritime Club at the Golden Bells Awards 2015 - Middle East where

Ocean 3 launched at the AGCT, Rijeka

China Shipping Container Line’s (CSCL) Xin Qin Huang Dao recently made its maiden call at the Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.

Rolls-Royce Propulsion Package for Polar Ship

Rolls-Royce has been awarded a contract by ship builder Fincantieri to supply a fully integrated propulsion system for Norway’s new Polar Research Vessel, which

Contracts

Rolls-Royce Propulsion Package for Polar Ship

Rolls-Royce has been awarded a contract by ship builder Fincantieri to supply a fully integrated propulsion system for Norway’s new Polar Research Vessel, which

Germany Fights for Indian Submarine Contract

German giant ThyssenKrupp Marine Systems (TKMS), the parent company of leading submarine builder HDW, will offer India its HDW Class 214 vessel, with an eye to

USA Urged Not to Delay Arctic Drilling

The U.S. should immediately begin a push to exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil in the future, reports AP.

Offshore

China Unveils Action Plan on Maritime Silk Road

China has unveiled the principles, framework, and cooperation priorities and mechanisms in its Maritime Silk Road initiative in a bid to enhance regional connectivity

JV Wins $2bln Freeport LNG Contract in US

A joint venture (JV) between CB&I, Chiyoda International and Zachry Industrial has won a contract worth over $2bn from FLNG Liquefaction 3 for a liquefied natural

Feds Delay LNG’s Port Ambrose Application

The US Coast Guard and the US Maritime Administration (MARAD) have temporarily suspended their review of the proposed Port Ambrose deep-water LNG import terminal.

Finance

Poland's LNG Terminal - Unfinished Agenda for Saipem

Poland's liquefied natural gas (LNG) terminal at the Baltic port of Świnoujście will be completed only if Italian firm Saipem receives further payment, reports Reuters.

Emission Control to Cost Additional $100 bln for Shipping Lines

The implementation of a global sulfur cap slated for 2020 is estimated to add an additional $50-100 billion to the shipping industry's annual fuel bills, Lloyd's List reports.

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Wind Power

Lack of Ship Definition is a Threat to Investors

AKD says the lack of an unambiguous term to describe a ‘ship’ in several jurisdictions represents a potential threat to asset security for financiers, particularly

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

BOEM Issues Offshore Wind Energy Research Lease

BOEM issues first wind energy research lease in Federal offshore waters   The U.S. Bureau of Ocean Energy Management (BOEM) has executed a wind energy research

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2923 sec (3 req/sec)