Vestas issued its annual report for 2013 today, saying that its revenue, EBIT and free cash flow exceeded expectations.
An information meeting was held today in Copenhagen, Denmark, where Group President & CEO Anders Runevad and Executive Vice President & CFO Marika Fredriksson provided a deeper insight into Vestas’ financial state and its 2014 outlook.
In 2013, Vestas’ revenue amounted to EUR 6,084 million, EBIT before special items was EUR 211 million and the free cash flow amounted to EUR 1,009 million.
The higher-than-expected revenue and EBIT were primarily driven by a smooth execution in terms of installation and transfer of risk combined with favorable weather conditions in December, the company says.
Last year marked the final year of Vestas’ two-year turnaround. Runevad said that the satisfactory completion of the two-year turnaround creates a solid starting point for the future strategy for Vestas, where Vestas will continue to focus on profitable growth.
For 2014, Vestas expects revenue to amount to minimum EUR 6 billion with an EBIT margin before special items of at least 5 per cent and a free cash flow of minimum EUR 300 million.
To a remark that the company’s 2014 expectations do not look ambitious, Fredriksson explained that Vestas set a minimum guidance for 2014, but that it doesn’t mean that the company would not strive for more.
When asked about the impact of the EU’s renewables targets for 2030 on Vestas’ long-term strategy Runevad said that the important thing is the visibility of targets, because it gives a possibility to make a better business plan.
Press release, February 4, 2014; Image: Vestas