Vestas Wind Systems, a Danish manufacturer and seller of wind turbines, has recently encountered a net loss of €80 million in the 1st quarter, despite solid sales & order bookings. The company explained the setback to be the result of the adverse impacts from the execution of various narrow margin projects as well as increased logistic costs and supply chain challenges due to the coronavirus outbreak.

The Danish wind energy company had earned €25 million in the 1st quarter of 2019. The operating result went from 43 million to a 112 million loss. The turnover cost was amounted to €2,235 million, representing a Y-o-Y hike of 29%. The power generated was 4,917-MW, which is a 79% hike, and an installed energy of 2,228-MW, increased by 39%.

According to Henrik Andersen, Vestas’s chief executive officer, the demand for wind power remained high despite the negative impacts due to the coronavirus pandemic on the operations of various companies. The company also maintained stability in terms of order intake and revenue during the uncertainty. It is focusing on ensuring the business continuity and making sure that renewables become a major part in the resumption of the global economy.

Due to the pandemic, the company has recently been involved in 400 workers layoff, mostly in Denmark, as well as terminated some projects. In the 1st quarter of 2020, the company’s revenue share was €2,235 million, which is a 29% hike as compared to the 1st quarter of 2019. The quarterly intake of the unconditional and firm wind turbine orders was 3,311-MW. €15.9 Bn was the value of the order backlog for wind turbines as of 31st March 2020. Additionally, the company had service agreements with €18.2 billion as the expected contractual future revenue. The combined value has increased by €5.8 billion as compared to a year earlier. The total investments of the company are assessed to be less than €700 million currently.

Source credit: https://www.evwind.es/2020/05/05/vestas-wind-power-lost-80-million-euros-until-march/74627