Vestas is a global energy company dedicated to wind energy, operating in 76 countries around the world in fields of development, manufacturing, and sales, and service of wind turbines. Vestas employs 21,000 people globally and is the largest wind turbine company in the world.
Vestas has installed 59,909 wind turbines on six continents, which generate more than 205 million MWh of electricity per year (e.g. the supply of almost 120 million European households with electricity) and reduce carbon emissions by more than 110 million tonnes of CO2.
The operational results Vestas achieved in 2016 have again manifested themselves into strong a financial performance.
According to the Company´s Annual Report in 2016, Vestas’ revenue amounted to EUR 10.2 billion and EBIT amounted to EUR 1.4 billion, which means an increase of EUR 1.8 billion and EUR 0.6 billion, respectively, compared to 2015. Since the introduction of its profitable growth strategy, Vestas has increased EBIT from EUR 211 million in 2013 to EUR 1,421 million in 2016 – an increase of 573 percent.
The revenue growth was derived from all regions. EMEA accounted for 45 percent (2015: 52 percent) of revenue, while the Americas and Asia Pacific accounted for 47 percent (2015: 41 percent) and 8 percent (2015: 7 percent), respectively. The revenue from the project segment increased by 23 percent to EUR 8,928 million, and was driven by increased deliveries to customers. The service revenue increased by 15 percent to EUR 1,309 million.
The net profit for the year amounted to EUR 965 million in 2016, which was an increase of 41 percent compared to 2015 (EUR 685 million in 2015). The profit for the year was a result of a high level of activity and cost management throughout the year.
In 2016, the order intake was strong and amounted to 10,494 MW corresponding to EUR 9.5 billion. Compared to 2015, the order intake in MW for the year increased by 17 percent equivalent to EUR 1.3 billion.
All regions contributed to the increase in order intake. The US market displayed a strong demand especially during December 2016, while the steady growth continued across the markets in Europe, Middle East, and Africa (EMEA) and Asia Pacific, and amongst others Vestas received its largest order to date during 2016. The order, which is to be delivered in Norway [1], contributed with 1 GW to the order intake. EMEA accounted for 49 percent (2015: 43 percent), the Americas for 41 percent (2015: 46 percent), and Asia Pacific for 10 percent (2015: 11 percent) of the order intake in 2016 in MW.
Final projects delivered to customers totalled 9,654 MW, which was a 29 percent increase compared to 2015. This growth was driven in particular by increased deliveries to the US market. The Americas accounted for 50 percent (2015: 45 percent), EMEA for 41 percent (2015: 49 percent), and Asia Pacific for 9 percent (2015: 6 percent) of the deliveries in MW. By the end of the year Vestas had installed 82 GW in 76 countries. The US contributed to 3,940 MW of deliveries in 2016 compared to 941 MW in 2015.
Return on invested capital was 265.2 percent in 2016, up 148.0 percentage points from 117.2 percent in 2015 (ROI in 2014 amounted to 35 percent), primarily driven by a well-managed working capital strategy as well as an improved operating result after tax.
Research and development costs amounted to EUR 227 million, which was slightly higher compared to EUR 211 million in 2015 and EUR 190 million in 2014.
Distribution costs amounted to EUR 190 million in 2016, equivalent to the level in 2015, despite a growth in revenue of 22 percent.
Administration costs amounted to EUR 288 million, which was EUR 40 million higher than in 2015. Administration costs constituted 2.8 percent of revenue in 2016, compared to 2.9 percent in 2015.
Vestas has a strong position within its three main business areas of wind turbines, services, and offshore energy offering a solid base for continued growth and stability.
[1] In February 2016, Vestas signed a 1 GW order in Norway consisting of · 248 V117-3.45 MW turbines · 30 V112-3.45 MW turbines
