Vestas has upgraded its outlook for 2016 following a 46% rise in second quarter revenues to €2.56bn.
The Danish manufacturer said EBIT before special items increase to €399m compared with €145m in the year-ago period, while net profit was €278m, up from €125m in the same quarter of 2015.
The company now expects minimum revenues this year to be €9.5bn, up from previous guidance of €9bn, with the EBIT margin rising to 12.5% rather than 11%. “This upgrade is based on better than expected performance in the first half of 2016 and visibility for the remainder of the year,” said Vestas.
Orders in the period were 1790MW and the value of the backlog was £8.2bn. Service agreements in place total €9.9bn.
Group chief executive Anders Runevad (pictured) said: “Our colleagues have executed well on a high activity level which along with a favourable mix of projects contributed to Vestas achieving extremely solid results on revenue, EBIT margin, net profit, and free cash flow and with an order intake in line with expectations.”
The company is also launching a €400m share buyback “to adjust the capital structure”.
Image: Vestas
