Vestas Shares Jump After Raised Revenue Forecast

COPENHAGEN, (APP - UrduPoint / Pakistan Point News - 18th Augst,2016) - Shares in Danish wind turbine maker Vestas Wind Systems rose on Thursday after the company raised its annual revenue forecast and posted strong quarterly results. "Our colleagues have executed well on a high activity level, which along with a favourable mix of projects contributed to Vestas achieving extremely solid results on revenue, EBIT margin, net profit, and free cash flow," chief executive Anders Runevad said in a statement. Order intake had been "in line with expectations," he said. Revenue was expected to reach at least 9.5 billion Euros ($10.7 billion) this year rather than a previous estimate of at least nine billion euros, according to the group.

The EBIT (earnings before interest and taxes) margin would be at least 12.5 percent this year, rather than 11 percent. Net profit in the second quarter more than doubled to 278 million euros from 125 million euros in the same period a year ago, as revenue gained 46 percent to 2.56 billion euros. The US government's decision to extend wind production tax credits, or PTCs, means "Vestas' team in the US will be extremely busy until December 31, because there is a high level of activity in the US market," Runevad told Danish news agency Ritzau. The group also said it would buy back shares worth 2.98 billion kroner (400 million euros, $453 million) starting Thursday and ending December 30.