The Danish wind turbine producer Vestas has released an interim financial report for the first quarter of 2016 revealing improved earnings, but decreased revenue and cash flow compared to the same period in 2015.
Vestas generated revenue of about 10.9 billion kroner in the first three months of 2016, a 4 percent decline compared to last year, while EBIT before special items increased by about 45 million kroner to around 633 million kroner.
“Vestas delivered a record-high first quarter order intake as well as our largest ever combined wind turbine and service order backlog,” said the group president and CEO, Anders Runevad.
“The EBIT margin also improved, while free cash flow, although at negative levels, was in line with expectations as we build up inventory preparing for a busy remainder of 2016. Full-year guidance remains unchanged.”
Vestas’s total intake of orders amounted to 2,403 MW over the first quarter of 2016, while the value of backlog orders increased by over 22 billion kroner to about 134 billion kroner compared to the first quarter last year.
Mixed bag for Novo
Meanwhile, Danish biotech giant Novo Nordisk increased its adjusted operating profit by 10 percent in local currencies during the first quarter of 2016.
Sales increased by 9 percent in local currencies while its net profit decreased by 4 percent to 9.5 billion kroner and turnover rose to 27.2 billion kroner compared to 25.2 billion kroner during the same period in 2015.
The results came a day after the company announced its long-acting diabetes product Semaglutide can reduce the number of cardiovascular cases among its users.
Excellent for DONG
Finally, DONG Energy described itself as making a “highly satisfactory” start to the year by increasing the EBITDA by 35 percent compared to the first quarter of 2015 from 6 billion kroner to 8.1 billion kroner.
According to the energy company, the improvement was driven by a 53 percent increase in wind power, partly offset by lower gas, oil and power prices.
Its net profit rose considerably from 3.5 billion kroner in Q1 2015 to 5.2 billion kroner this year.