Vestas announces its first quarter 2019 results with order intake and backlog at all-time high level

Following the announcement by Vestas Wind Systems A/S, on its first quarter 2019 results, Mohit Prasad, Power Analyst at GlobalData, a leading data and analytics company, offers his view:

“Vestas Wind Systems A/S reported revenue of €1,730m, an increase of two percent on year on year basis. The order intake of firm and unconditional wind turbine orders amounted to 3,004 MW in the first quarter of 2019. As of Mar 31, 2019, the company reported an order intake of more than 3 GW in the first quarter leading to a combined order backlog of more than €28bn, up by 31% on year on year basis, which is at an all-time high level.

“With the focus growing more on multi MW segment and offshore wind market, Vestas witnessed an increase in average selling price of order intake – €0.81/MW against €0.73/MW on year-on-year basis. This was mainly driven through the turbine type and the geography and the focus on offshore market will further increase the average selling price.

“Americas contributed the most to the overall order intake for the first quarter of 2019. The US wind market, driven by Production Tax Credit (PTC), will be the major market for Vestas’ orders. The LATAM market, which is likely to witness more auctions across Brazil and Argentina, has potential to further strengthen Vestas’s presence as the preferred supplier. The European market is now shifting from Feed-in-Tariff (FiT) structure to Auction mechanism. Countries like France and Italy, which are planning for auctions through 2020s, will be important markets for Vestas in the future. The company has also been targeting the merchant wind power market in Europe and secured first contracts in the UK and Denmark.

“With the upcoming series of auctions planned in countries like Kenya, Tanzania and Ethiopia in LATAM and Saudi Arabia in Middle East, this will fuel Vestas ambitions to expand and search for strong footing in new demand centers. Vestas is likely to improve performance and will witness a surge in its order intake activity during coming quarters owing to stable demand from Americas, EU and major APAC markets, coupled with burgeoning demand from newer markets.”

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