MHI Vestas Offshore Wind secured four firm and unconditional orders totalling 910MW in capacity in 2016.
The firm orders were received for the 42MW Blyth project in the UK, the 406MW Horns Rev III project in Denmark, the 370MW Norther project in Belgium, and the 92MW Aberdeen Bay project in the Scotland.
Furthermore, the joint venture between Vestas and Mitsubishi Heavy Industries also announced that it had been appointed preferred supplier for the 252MW Deutsche Bucht project in Germany and the 21MW Icebreaker demo project in Lake Erie, USA.
MHI Vestas was also named a preferred supplier for the Borssele III and IV wind farms in The Netherlands, a milestone project for the offshore industry in cost competitiveness with a reported price of EUR 54.50 per MWh, excluding transmission costs.
During 2016, MHI Vestas Offshore Wind completed installation of the first large-scale commercial project based on the V164-8.0MW wind turbine at DONG Energy’s 258MW Burbo Bank Extension project off the coast of Liverpool, UK.
The Burbo Bank Extension is the first large-scale offshore project to utilise the world’s most powerful wind turbine.
During the year, MHI Vestas Offshore Wind almost completed delivery of the 165MW Nobelwind project located in Belgium, comprising 50 V112-3.3MW turbines.
The joint venture ramped-up production of the V164- 8.0MW turbine in anticipation of delivery of the 258MW Burbo Bank Extension project, the 330MW Walney Extension project, and the 42MW Blyth project in 2017, all located in the UK.
Further, it is planned for the coming financial year that MHI Vestas will hand-over 116 V112-3.45MW turbines for the 400MW Rampion project in the UK.
Throughout 2016, MHI Vestas Offshore Wind recruited and trained over 500 employees due to increased demand.
Looking ahead, MHI Vestas expects the activity levels to continue to increase with factories ramping up for new installations of V164-8MW projects.
In the short-term, this is expected to adversely impact earnings. In addition, large amortisations of the 8MW platform will likewise impact financial performance, the company said.
Accordingly, MHI Vestas expects to double its revenue over the next three years while EBITDA is expected to reach break-even by 2018 while pre-tax profit is anticipated to reach break-even by 2019.