Vestas has suspended its guidance for 2020, citing uncertainty and limited visibility resulting from the coronavirus pandemic.
The Danish turbine manufacturer said that first quarter figures and a 3.3GW order intake in that period indicated achieving its previous 2020 outlook was realistic and showed a “limited” impact when seen in isolation.
However, it said uncertainty over the duration and extent of the pandemic meant the prognosis for the remainder of the year was unclear.
Vestas says its proposed 2019 dividend will not be affected by the decision and that as soon as the company deems that it is capable of giving new estimates for the full-year results, it will disclose updated guidance.
The company has issued a statement saying that since the COVID-19 outbreak began, Vestas has taken measures to ensure the safety of its employees and reasonably mitigate the impact on operations.
The spread of the virus globally and the national measures implemented to contain it have however, caused disruptions to Vestas’ manufacturing, supply chain, and installations.
The statement added that given uncertainty in regard to the duration of the pandemic and the full extent of its global consequences in particular, Vestas was no longer able to confidently give guidance on full-year performance.
Chief executive Henrik Andersen said: “The situation changes daily and my colleagues’ ability to adapt fast and follow our extensive safety measures have been key to keeping performance in the first quarter in line with expectations.
“Unfortunately, the pandemic continues to spread and with no clear prognosis on when key wind markets such as the USA, Brazil and India will recover, we are suspending our guidance due to the poor visibility for the remainder of the year.”
Vestas said it had taken a series of measures to ensure the health and safety of its employees all over the world and to ensure business continuity, in dialogue with suppliers, partner, and customers, and that it was following recommendations and guidelines.
It added that the company will continue to monitor the situation closely and to develop and implement contingency plans as the pandemic evolves.
The company said its factories in China have returned to normal operation and it is working to mitigate the impact of lost production time through the company’s global footprint, including using capacity in China to mitigate challenges in other parts of the world where increasing restrictions and disruptions are now being seen.
Vestas’ interim financial report for first quarter 2020 is due on 5 May.