Vestas reports 41% increase for 2016 profit

Vestas Wind System, a wind turbine company, released it full year report for 2016, showing a 41% rise for their full year net profit of €2.13 billion from previous year €1.51 billion.

According to the report, Vestas order intake for the year reached a record high of 10,494 megawatts, which was worth €9.5 billion ($10.2 billion). This boost came from the December strong demand in the US, as well as continued growth from Europe, Middle East, Africa, and Asia Pacific areas.

“The market environment continues to be very supportive for the wind power industry with regulatory policies generally providing a favorable backdrop for industry stability. Combined with the continuously improving economics of wind energy, the future looks bright for increasing wind energy’ share of the energy mix,” said Vestas CEO Anders Runevad.

Revenues of the company climbed 22% from 2015 report of €8.43 billion to a new high of €10.23 billion for fiscal 2016. Earnings before interest and taxes (EBIT) before special items rose 65% to €1.42 billion.

For the fourth quarter results, revenue grew 9% to €3.31 billion, gross profit rose 16% to €667 million, and EBIT before special items increased 25% to €504 million.

The board of directors suggested a divided of 9.71 Danish Kroner per share, which higher from last year’s 6.82 Kroner per share.

After its earnings data, Vestas provided its guidance for 2017, stating a softer outlook for sales of between €9.25 billion and €10.25 billion, compared to the recent €10.24 billion outlook the company posted for 2016.

Upon the posting of its fourth quarter and full year earnings results, Vestas shares experienced a sharp surge in the market by 4% on Wednesday closing at 504.00.

The company previously mentioned its plans to initiate a share buyback programme that would cost around 705 million Danish Kroner (€95 million). Vestas board of directors mentioned that they are planning to execute this programme during the period from February 8, 2017 to May 4, 2017.

The share buy-back programme will be structured in accordance with Article 5 of Regulation No. 569/2014 of the European Parliament and Council of April 2014.

Meanwhile, due to the agreement made by Siemens and Gamesa to combine their assets in the sector, Vestas is believed to lose its status as the world’s biggest wind turbine manufacturer.

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