* Vestas to issue 20 million new shares in private placement
* Net loss 82 million euros in 2013 vs 963 million loss in
* EBIT margin seen increasing to above 5 pct in 2014 from
3.5 pct in 2013
(Adds details, quotes, background)
By Teis Jensen
COPENHAGEN, Feb 3 After two years of
cost-cutting, Danish wind turbine maker Vestas Wind Systems
on Monday forecast improved profitability in 2014 and
used its strong share price performance to raise more than 450
million euros in new capital.
The company has shed over 5,000 jobs, closed plants and sold
unprofitable business in its turnaround after overcapacity and
cut-throat competition hammered many renewable energy companies.
Its net loss fell to 82 million euros in 2013 from 963
million euro loss in 2012. It was the company's third year in a
row of net losses.
"2013 marked the final year of Vestas' two-year turnaround.
Vestas has delivered on the main focus areas over the turnaround
period," it said in the full-year report late on Monday.
In 2014, Vestas expects operating profit margin before
special items to increase to at least 5 percent from 3.5 percent
in 2013. Revenue, which came in at 6.08 billion euros in 2013,
is expected to be at least 6 billion euros in 2014.
In a sign of a pickup in demand for wind power, it reported
a 60 percent rise in order intake in 2013 to 5,964 megawatt
(MW), above the 5,794 MW analysts expected in a Reuters poll.
"The earnings report shows that Vestas has gone successfully
through a turnaround," Sydbank analyst Jacob Pedersen said.
The company said separately it will issue 20.4 million new
shares in a private placement at market price using a
At Monday's closing share price that would correspond to
around 487.81 million euros. Vestas' share capital will increase
by almost 10 percent after the issue.
"Vestas doesn't need the money from the capital increase
right now, but it will put the company in a better position when
it comes to win large wind projects," Pedersen said.
He expects the share to open 4-7 percent lower on Tuesday as
the issuance of new shares dilutes existing ones.
After a five-fold increase in 2013, Vestas' share price has
risen by a further 13.6 percent in 2014, outperforming the
Danish benchmark index.
DNB, HSBC, Nordea and SEB
are coordinating the share issue, and
Rothschild is Vestas' financial adviser.
Vestas also said it had agreed a new five-year revolving
credit facility of 850 million euros with Nordea, DNB, HSBC and
(Additional reporting by Ole Mikkelsen, Editing by Louise
Ireland and David Evans)