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

People & Company News

West Coast Port Talks Clear Hurdle

Shipping companies and the union for 20,000 dockworkers at nearly 30 U.S. West Coast ports have cleared a major hurdle in their protracted labor talks, clinching

ClassNK Releases Improved "e-Application"

ClassNK announced the release of an improved "e-Application" system. This improvement was planned based on requests from the users. Therefore, firstly we would

Wärtsilä Propulsion Solution for 3 Tugs

Three large new escort tugs contracted by Norwegian operator Østensjø Rederi, will feature Wärtsilä dual-fuel (DF) engines integrated with a customized gas storage

Contracts

NewLead Holdings Acquire 5 Vessels

NewLead Holdings Ltd. announced today that it recently added five bitumen tanker vessels to its fleet. The Company has expanded its fleet to 10 vessels in less

Russia – Turkey Gas Pipeline Approved

Ankara hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Taner Yildiz, Turkish Minister of Energy and Natural Resources.

Port of Le Havre Calls for EOI for Storage Facility

Port of Le Havre has called Expression of Interest (EOI) for Storage facility for liquid Bulks to be set up inside the port. The Grand Port Maritime du Havre (GPMH),

Offshore

Wärtsilä Propulsion Solution for 3 Tugs

Three large new escort tugs contracted by Norwegian operator Østensjø Rederi, will feature Wärtsilä dual-fuel (DF) engines integrated with a customized gas storage

Russia – Turkey Gas Pipeline Approved

Ankara hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Taner Yildiz, Turkish Minister of Energy and Natural Resources.

Greatship to Buy PSV

Greatship (India) Limited (GIL), a wholly owned subsidiary of The Great Eastern Shipping Company Limited, has signed a contract to buy a 2015-built 4000 dwt Platform Supply Vessel (PSV).

Finance

West Coast Port Talks Clear Hurdle

Shipping companies and the union for 20,000 dockworkers at nearly 30 U.S. West Coast ports have cleared a major hurdle in their protracted labor talks, clinching

NewLead Holdings Acquire 5 Vessels

NewLead Holdings Ltd. announced today that it recently added five bitumen tanker vessels to its fleet. The Company has expanded its fleet to 10 vessels in less

Greek Shipping Fears Syriza Tax Plan

Will the new government in Greece led by radical-left party Syriza levy higher taxes that the shipping industry can’t afford? A report in WSJ says that several

Wind Power

Boost for Offshore Wind Energy

As part of President Obama’s Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution, Secretary of the Interior

Infigen Energy Mulls Shedding U.S. Wind Farms

Australia under pressure to fix renewable energy target deadlock; 45 wind farm projects stalled. Australian wind farm operator Infigen Energy Ltd is exploring the sale of 18 U.

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction 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: 0.2280 sec (4 req/sec)