Vestas recorded an operating loss of €54m in the first quarter of 2020, down 226% from the previous year’s €43m profit, due in part to the impact of COVID-19.
The Danish turbine manufacturer’s chief executive Henrik Andersen (pictured) said EBIT before special items was impacted by “increased execution costs from logistical challenges and supply chain bottlenecks, which were further amplified by the pandemic”.
The loss was also hit by delivery of low-margin projects, he added.
“Across the company, we have done well to ensure business continuity during the pandemic, but the uncertainty around the full-year impact prevails, and our guidance therefore remains suspended,” he said.
However, Vestas said meeting guidance on revenue and EBIT margin is still possible, with its service operation to grow and a focus on cost savings.
“As the global pandemic and economic crisis move into their next phase, Vestas continues to ensure business continuity and that renewables become a key part in restarting the global economy,” added Andersen.
First quarter results meanwhile showed revenue at €2.2bn, up 29% year on year, while quarterly order intake was 3.3GW
The value of the wind turbine order backlog was €15.9bn as at 31 March 2020.