Vestas Revenues At $4.1 Bn in Q2 FY21, Orsted Reports $2.68 Bn

Danish wind turbines manufacturer, Vestas Wind Systems, has released its financial results for the second quarter of the fiscal year 2021 (Q2FY21), and it has reported a revenue of EUR 3.53 billion (USD 4.15 billion).

Fellow Danish utility and developer, Orsted also reported its financial results for the same quarter today, coming out with a revenue of DKK 13.1 billion (USD 2.68 billion) a sharp increase of over the DDK 3.3 billion for the same period in 2020.

The topline at Vestas didn’t grow too much over its 2020 corresponding number, though earnings before interest and taxes (EBIT) before special items increased by EUR 67 million to EUR 101 million. This resulted in an EBIT margin before special items of 2.9% compared to 1.0% in the second quarter of 2020.

Vestas has reported that the cash flow accounted for EUR 183 million compared to EUR 106 million in the same period of 2020.

The quarterly intake of firm and unconditional wind turbine orders amounted to 5,290 MW. The value of the wind turbine order backlog was recorded at EUR 21.2 billion as of 30 June 2021. In addition to the wind turbine order backlog, at the end of June 2021, Vestas had service agreements with expected contractual future revenue of EUR 26.9 billion. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 48.1 billion – an increase of EUR 13.0 billion compared to the year-earlier period.

Also, Vestas is expecting a revenue of EUR 15.5-16.5 billion, including Service, with an overall EBIT margin before special items of 5-7 %, in the third quarter. “We achieved revenue of EUR 3.5 billion and an EBIT margin of 2.9 percent, which is an improvement of 1.9 percentage points year-over-year. In this environment, our Service business and wind turbine order intake grew 23 percent and 28 percent respectively year-over-year, which resulted in an all-time high order backlog of more than EUR 48bn, said Henrik Andersen, CEO & President at Vestas.

He added, “Combined with an average selling price of 0.79 EUR/MW for onshore, new offshore orders and our first preferred supplier agreement for our V236-15.0 MW turbine, the quarter was commercially very strong.”

Comparatively, Orsted reports that earnings from its offshore and onshore wind farms in operation were DKK 0.3 billion lower compared to the same period last year. The increased generation capacity from new wind farms in operation was more than offset by significantly lower wind speeds across the portfolio. Earnings from existing partnerships decreased by DKK 1.8 billion compared with the same period last year.

Orsted has reported a net profit amounted to DKK 7.1 billion and return on capital employed (ROCE) came in at 12.5 %. It has projected an increase in its full-year gross investment guidance from DKK 32-34 billion to DKK 39-41 billion.

Speaking of the results, Orsted’s President & CEO, Mads Nipper stated, “In the first half of 2021, we’ve delivered good operational performance. Within our Offshore business, Ocean Wind 2 was awarded a 1,148 MW contract in New Jersey. Our total awarded US portfolio now exceeds 4 GW. We also entered into several new strategic partnerships in Norway, Korea, Scotland, and Japan.”

“At our Capital Markets Day in June, we updated our long-term financial guidance and raised our strategic ambition for renewable capacity to approx. 50 GW in 2030,” he added.