Vestas FY21 Profit Declines, Maintains FY22 View; Cuts Dividend; Stock Down

Danish wind turbines maker Vestas Wind Systems A/S (VWDRY.PK) reported Thursday that its fiscal 2021 profit fell to 176 million euros from last year's 771 million euros. Earnings per share fell to 0.2 euro from 0.8 euro a year ago.

Operating profit of EBIT declined to 322 million euros from 698 million euros last year, hampered by supply chain disruptions, causing cost inflation, delays, and high warranty provisions. EBIT margin was 3 percent.

EBITDA dropped to 1.31 billion euros from last year's 1.38 billion euros,.

For the year 2021, Vestas' revenue amounted to 15.59 billion euros, up from 14.82 billion euros last year, despite increasing supply chain challenges. The company recorded high level of deliveries at 16.6 GW.

Total order intake was 13.9 GW and the company reported increasing pricing throughout the year.

As announced on January 26, Vestas expects fiscal 2022 revenue to range between 15 billion euros and 16.5 billion euros, including Service revenue. Vestas expects to achieve an EBIT margin before special items of 0-4 percent.

Revenue in the Service segment is expected to grow by around 5 percent in 2022, with a service EBIT margin of around 25 percent.

The Board of Directors proposes to the Annual General Meeting that a total dividend payment of 50 million euros, corresponding to DKK 0.37 per share, be distributed to the shareholders in 2022, compared to a total of 230 million euros last year.

Henrik Andersen, Group President & CEO said, "With supply chain disruptions expected to continue throughout the year, 2022 will be challenging for the industry."

In Denmark, Vestas shares were trading at 162.25 Danish kroner, down 3.71 percent.

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