Vestas Wind Systems Q1 Loss Narrows, Orders Down; Maintains FY21 View - Quick Facts

Danish wind turbines manufacturer Vestas Wind Systems A/S (VWDRY.PK) reported Wednesday that its first-quarter loss narrowed to 57 million euros from last year's loss of 80 million euros.

Operating profit or EBIT was negative 71 million euros, narrower than prior year's negative 112 million euros.

Operating profit before amortisation, depreciation and impairment or EBITDA, however, climbed to 136 million euros from 87 million euros a year ago. EBITDA margin was 6.9 percent, up from 3.9 percent a year ago.

Vestas generated revenue of 1.96 billion euros, a decrease of 12 percent from 2.24 billion euros last year, due to lower activity levels and impact from supply chain constraints.

The quarterly intake of firm and unconditional wind turbine orders amounted to 2,016 MW, down from 3,311 MW a year ago. In euro terms, order intake was 1.6 billion euros, down from 2.4 billion euros last year.

The combined backlog of wind turbine orders and service agreements stood at 44.7 billion euros at the end of the quarter, an increase of 10.6 billion euros compared to the year-earlier period.

The value of the wind turbine order backlog was 19.4 billion euros as of March 31, and the company had service agreements with expected contractual future revenue of 25.3 billion euros.

Further, Vestas maintained its full-year guidance for 2021, with revenue expected to range between 16 billion euros and 17 billion euros, including service revenue, which is expected to grow by around 15 percent.

Vestas expects to achieve an EBIT margin before special items of 6-8 percent, with a service EBIT margin of approximately 24 percent.

Group President & CEO Henrik Andersen said, "Although we have started the year a bit slower than expected, we remain positive we will catch up throughout the rest of the year by maintaining a strong focus on executing our 2021 goals and mid-term strategic priorities."

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