Vestas, the Danish corporation that operates in wind energy, closes 2016 with record turnover and profits. The turnover recorded in 2016 amounted to 10,2 billion euros. The margin before financial charges was 13,9 percent, total net investments equal to 617 million euros and free cash flow at 1.564 million euros, in line with expectations. The company communicates this by specifying that “the level of activity and profits for the period were driven by the stable execution of a solid order portfolio of wind turbines and services. There question of both has been in steady growth during the year, the result of solid execution and favorable market conditions.”
The orders of wind turbines increased from 8.943 MW in 2015 to 10.494 MW in 2016 and the value of recorded service demand increased from EUR 1,8 billion to EUR 10,7 billion.
For 2017, Vestas expects an increase in turnover estimated at between 9,25 billion euros and 10,25 billion euros, including revenue from the services sector, which is also expected to grow. Vestas expects to achieve a result before financial charges of 12-14 percent, considering a stable trend for the gross operating margin of services.
The amount of total investments is estimated at approximately 350 million euros, with free cash flow expected to be a minimum of 700 million euros in 2017. By virtue of the strong performance of the year just ended, the Board of Directors has proposed a dividend equal to 9,71 Danish crowns, compared to 6,82 in the previous financial year, and an equivalent of 30 percent of the net profit for the year to be distributed to shareholders.
The net revenue generated by sale of properties of the Vestas headquarters, news announced on Wednesday, will be distributed to shareholders through a buy-back program worth 705 million Danish crowns (approximately 95 million euros) which will begin on Thursday.
“I am extremely satisfied with Vestas' performance for 2016: it is a record year for us in terms of turnover, EBIT, profit, free cash flow, order portfolio and delivery. Results were up more than 29 percent compared to the previous year, while operating costs remained under tight control. All regions contributed to this remarkable achievement, demonstrating once again the effectiveness of Vestas globally,” he said Anders Runevad, President and CEO of the Group.
