Vestas has reported a 4% drop in operating profit for the third quarter of 2020, compared with the same period last year.
Earnings before interest and tax (EBIT) before special items was €412m, down from €429m, resulting in an EBIT margin before special items of 8.6%, compared to 11.8% in the third quarter of 2019.
In the third quarter of 2020, Vestas generated revenue of €4770m – an increase of 31% compared to the year-earlier period.
The quarterly intake of firm and unconditional wind turbine orders stood at 4232MW.
The value of the wind turbine order backlog was €14.6bn as at 30 September 2020.
In addition to the order backlog, at the end of third quarter 2020, Vestas had service agreements with expected contractual future revenue of €19.3bn.
The value of the combined backlog of wind turbine orders and service agreements stood at €33.9bn – an increase of €1.1bn compared to the year-earlier period.
Vestas is forecasting annual revenues of €14-15bn for 2020, an EBIT margin before special items of 5-7%, and total investments below €700m.
This forecast, however, is based on assumptions that are subject to greater uncertainty than under normal circumstances, due to COVID-19, according to the Vestas board.
Group president and chief executive Henrik Andersen said: “Vestas achieved its highest ever deliveries in a single quarter and grew revenue 31% year-on-year to €4.8bn, although the widespread impact of COVID-19 continued in the third quarter.
“Our momentum towards the end of the year continued to grow, which contributed to an EBIT margin before special items of 8.4%.
“With total order intake of 4.2GW from all regions and stable pricing, the demand for wind energy remained strong in the quarter, even though green stimulus packages are yet to materialise.
“Service achieved a high EBIT margin of 28.6% and grew by 14% compared to the same quarter last year, ensuring a combined order backlog of €34bn and stable energy supply in 75 countries.
“Although uncertainty around COVID-19 will continue for the rest of the year, our sustained leadership in onshore wind energy and the acquisition of MHI Vestas Offshore Wind underline our progress towards becoming the global leader in sustainable energy solutions.”