In the third quarter of 2015 (Q3'15), Vestas says it generated revenue of EUR 2.12 billion – an increase of 17% compared to the year-earlier period. EBIT before special items increased by EUR 69 million to EUR 232 million. The EBIT margin before special items was 10.9%, and the free cashflow increased by EUR 53 million to EUR 158 million compared to the third quarter of 2014.
The intake of firm and unconditional wind turbine orders amounted to 1,508 MW in Q3'15, and the value of the wind turbine order backlog amounted to EUR 8.2 billion at Sept. 30. Furthermore, Vestas says it had service agreements with contractual future revenue of EUR 8.2 billion at the end of September. Thus, the value of the combined backlog of wind turbine orders and service agreements stood at EUR 16.4 billion – an increase of EUR 3 billion compared to the year-earlier period.
Vestas says it is upgrading the 2015 guidance of revenue from a minimum of EUR 7.5 billion to between EUR 8 billion and EUR 8.5 billion; EBIT margin before special items from a minimum 8.5% to 9-10%, and free cashflow from a minimum EUR 600 million to between EUR 800 million and EUR 1 billion. The company says the upgrades are based mainly on improved delivery visibility for the remainder of the year.
In addition, Vestas' board of directors has initiated a share program, under which Vestas may repurchase shares up to a maximum amount of approximately EUR 150 million, and no more than 19,268,107 shares, corresponding to 8.6% of the share capital of Vestas. Prior to the share buy-back program, Vestas holds 3,139,344 treasury shares, equal to 1.4% of the share capital.
The company says the purpose of the program is to adjust Vestas' capital structure and to meet the obligations arising from employee share option programs or other allocations of shares to employees of Vestas. The share buy-back program will run until Dec. 31.
"Vestas has delivered another quarter with strong results on key financial and operational parameters. With greater clarity on deliveries for the remainder of the year and a very solid financial position, we are raising our guidance on revenue, EBIT margin, and free cash flow and initiating a share buy-back program," says Vestas President and CEO Anders Runevad. "I am very pleased that year-on-year for orders, Vestas is growing in all regions, consistent with our profitable growth strategy."