Vestas will end 2020 with a profit of DKK 6.94 billion before tax, which is an increase of just over DKK 185 million, equivalent to 2.75 percent compared to 2019. After tax, the profit is DKK 5.73 billion.
However, the operating result (EBIT) will fall by approximately 30 percent to DKK 5.2 billion compared to DKK 7.5 billion in 2019. The EBIT margin also took a serious hit, falling to 4.7 percent compared to 8.3 percent last year.
Vestas must therefore look far ahead to previous EBIT margins, as it has seen steadily declining figures for that parameter in recent years. Thus, in 2016, it experienced a profit margin of 13.9 percent and in 2017, 12.4 percent.
Growth in North and South America
On the other hand, revenue increased by 22 percent to DKK 110 billion. Behind the increase is increasing sales in, among other things, the region that includes the countries in North and South America. In this region alone, revenue has increased by 39 percent to DKK 54.2 billion.
With the progress, the North and South American region has overtaken Vestas' largest region to date in terms of revenue. It is the region that includes Europe, the Middle East and Africa. That is why this region is called the EMEA region.
Last year, revenue in the EMEA region fell by three percent to DKK 39.4 billion.
For the last of the three regions, the one that includes the Asia-Pacific area, revenue increased by a full 54 percent to DKK 16.5 billion last year. kr.
In general, Vestas experienced a large increase in the number of orders. Thus, the wind turbine manufacturer received orders for a total of 320 billion kr. against 252 billion kr. in 2019. However, the increase includes orders from MHI Vestas after Vestas annexed the offshore producer into its business last year.
A good 178.5 billion kr. of these orders are in the group's service division, while the onshore division has orders for 112 billion kr. and offshore 30 billion kr.
Satisfactory result
The annual result pleases Vestas' President and CEO, Henrik Andersen.
- Vestas played a leading role in the fight against the climate crisis in 2020, and we met our revised financial expectations on all parameters, with market-leading revenue, order intake and profitability, even though all parts of our value chain were affected by COVID-19, he says and continues:
- Under these circumstances, we reached more than 17 GW of deliveries and expanded our total order book to a record high of EUR 43 billion through strong order intake, growth in service, and the reintegration of the offshore wind turbine business.
In 2021, Vestas expects revenue of DKK 120-125 billion, including service revenue, which is expected to grow by approximately 15 percent.
Vestas expects to realize an EBIT margin before special items of 6-8 percent with an EBIT margin for service of approximately 24 percent. They are expected to account for approximately DKK 7.5 billion in 2021.
Vestas shares are currently down approximately 2 percent following the announcements about the financial statements.
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