Danish wind-turbine manufacturer Vestas upgraded its annual outlook for 2016 after posting solid half-year results, the company announced Thursday.
Vestas now expects its revenue for 2016 to achieve "minimum 9.5 billion euros" (about 10.7 billion U.S. dollars) as against its previous forecast of minimum 9 billion euros.
It also raises its expected result on EBIT (Earnings before interest and tax) margin before special items from minimum 11 percent to minimum 12.5 percent, and free cash flow from minimum 600 million euros to minimum 800 million euros.
Vestas said in a statement that "the upgrade is based on better than expected performance in the first half of 2016 and visibility for the remainder of the year." Overall revenue for the first half of 2016 stood at 4.021 billion euros, up from 3.268 billion euros for the same period last year, the company's half-yearly results showed. For the second quarter alone, Vestas generated revenue of 2.557 billion euros, an increase of 46 percent from 1.749 billion euros, year-on-year. Vestas said the second-quarter revenue was primarily driven by higher level deliveries for the project segment.
In order to adjust capital structure, Vestas on Thursday also announced a share buy-back program of 400 million euros to be executed during the period Aug. 18 to Dec. 30, 2016. The share price of Vestas at the Copenhagen Stock Exchange rose more than 10 percent after the first minutes of trading on Thursday. (1 euro = 1.13 U.S. dollars)
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