Vestas’ Backlog Balloons with Strong Gust of Offshore Wind Projects Around Europe
Vestas Wind Systems A/S (Aarhus, Denmark) truly has the wind in its sails, as the company is increasing its full-year outlook for revenues and profits after it reported significantly higher revenue, earnings and profit in second-quarter 2016.
The company has been benefiting from government support for renewable energy, including subsidies in its home country Denmark and the extension of the U.S. Production Tax Credit; in particular, the U.S. accounted for 27% of Vestas’ quarterly order intake. The quarter’s revenues stood at 2.6 billion euros ($2.95 billion), a 46% increase from the same period last year. Industrial Info is tracking $20.54 billion in projects involving Vestas.
The company’s combined backlog of wind turbine orders and service agreements stood at 18.1 billion euros, an increase of 1.2 billion euros compared to the year-earlier period.
“Development of offshore windfarms is expected to continue to represent an importance piece of the puzzle as Europe increases its dependence on renewable energy sources,” said Britt Burt, Industrial Info's vice president of research for the global Power Industry. “While Europe is a few years ahead of the U.S., the first offshore windfarm in the U.S. soon will become operational.
“With renewable energy portfolio standards being expanded and the Production Tax Credits being extended, we will continue to see development of onshore and offshore wind energy at a fairly healthy pace in the U.S. Vestas has been a leading company to provide equipment for these projects, and I certainly expect to see this continue for years to come.”
For more information, including details on Vestas’ highest-value projects, each with an investment value of more than $1 billion, click here to see the full article at Industrial Info.