With a strong contribution from the North American wind market, turbine maker Vestas has reported improved sales and earnings for 2014.
For the year ended Dec. 31, 2014, Vestas posted a net profit of EUR 392 million for the year, compared with a loss of EUR 82 million for 2013. The company also reported a 3.4% increase in revenue to EUR 6.9 billion, compared to EUR 6.1 billion for 2013.
The global market for wind power improved in 2014, says Vestas, noting that total deliveries reached nearly 6.3 GW, compared to 4.9 GW in 2013. Vestas delivered nearly 1.6 GW to the U.S., Canada and Mexico – allowing the company to reach 15 GW of installed capacity in the North American market. The manufacturer notes that it was aided by the two-week extension of the production tax credit at the end of the year. ‘Although with limited time to secure additional orders, [the extension] contributed to high activity at the end of the year,’ says Anders Runevad, VestasÂ group president and CEO.
Europe contributed double-digit growth, and the emergence of new wind markets more than offset the decrease in the Asia Pacific region.
‘2014 was the first year executing our new strategy – Profitable Growth for Vestas,’ notes Runevad. ‘We made solid progress in terms of improving profitability and improved our net cash position by around EUR 1.3 billion.’
He continues, ‘Tough competition and an ever-changing regulatory environment are some of the challenges we are facing. However, I am encouraged by the higher earnings, the significant improvement to net working capital and the continued strong cashflow.’
To read the annual report, click here.