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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Vestas reports 41% increase for 2016 profit
Reviewed by Trade12 Reviews
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Reviewed by Trade12 Reviews
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