Vestas back in profit as turbine shipments surge

Shares in Danish wind turbine manufacturer Vestas surged today after the company revealed it is back in the black after a loss-making first quarter.

The company, which is still the market leader despite a deeply troubled past year, decided to release preliminary financial figures ahead of its full interim report, which is not due until 22 August.

In the second quarter (Q2) of 2012, Vestas produced and shipped 2160 MW of turbines, a 132 per cent rise on the Q1 figure of 931 MW and a 52 per cent increase on the 1417 MW of Q2 2011.

Revenue in Q2 2012 was €1611m compared to €1105m in Q1 and €1401m a year earlier.

Earnings before interest and tax before special items were €40m in Q2, against a loss of €204m in the first quarter.

The company said in a statement that it had “experienced a strong improvement in earnings and activity level in the second quarter of 2012 compared to the first quarter of the year”.

However it added that its financial covenants are affected by "disappointing results realised in the second half year of 2011 and the first quarter of 2012”.

“Vestas has therefore agreed with its lenders to defer the half-year 2012 testing of the financial covenants contained in Vestas’ banking facilities, and the lenders have allowed drawings, which in the opinion of Vestas are sufficient for the continued operation of Vestas,” the company said, adding that it “expects to test on normal terms in the future”.

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