MHI Vestas Goes Back to Black

Offshore wind turbine manufacturer MHI Vestas recorded EUR 30 million net profit in the third quarter of 2020.

The company’s revenue stood at EUR 508 million for the period, an increase of EUR 109 million compared to the same quarter last year.

The revenue in the third quarter was driven by the delivery of 42 V164-9.5 MW wind turbines for the 731.5 MW Borssele III and IV project in the Netherlands.

MHI Vestas ended the first six months of 2020 with a net loss of EUR 6 million. The first quarter ended with a net profit of EUR 6 million, and the second quarter with a net loss of EUR 12 million.

The results during this period were impacted by lower delivery activity, Vestas said in its financial report.

The company’s net profit for the first nine months thus stands at EUR 24 million, EUR 12 million less compared to the first nine months of 2019.

Revenue in the first nine months of 2020 stood at EUR 924 million, again dominated by deliveries to the Borssele III and IV project, as well as the Northwester 2 project in Belgium.

Compared to the same period last year, the revenue recorded a decrease of 31 per cent, driven by lower delivery activity.

MHI Vestas received no firm and unconditional orders in the third quarter of 2020.

Firm orders for the first nine months of 2020 totalled 1,803 MW, with expected installation in 2022 and 2023.

The orders in the first quarter included the 589 MW Changfang and Xidao in Taiwan and the 139 MW Akita Noshiro in Japan. In the second quarter, MHI Vestas received an order to deliver 114 V164-10 MW turbines for the 1,075 MW Seagreen project in Scotland.

As reported earlier, Vestas and Mitsubishi Heavy Industries (MHI) signed an agreement for Vestas to acquire MHI’s 50 per cent stake in MHI Vestas.

The closing of the transaction is expected within either the fourth quarter of 2020 or the first quarter of 2021.