Vestas Wind Systems decided to disclose details for Q2 2012 couple weeks ahead of schedule and also update on the financial situation. During the quarter the company produced and shipped a lofty number of 2160 MW of turbines. Revenue grew by 46% to over 1.6 billion Euros and EBIT before special items appears to be positive at around 40 million. Free cash flow was still clearly negative. The stock has climbed around 15% to trade near 30 DKK soon following the disclosure.
The company says that its lenders have agreed to defer half-year 2012 covenants testing and have allowed Vestas to continue drawings on those despite the losses since the latter part of last year up until the previous quarter. The issue is supposed to be temporary given the strong order backlog on top of the improved Q2 earnings. On the other hand, details of order intake weren't mentioned, so the backlog likely came down somewhat. Vestas says that the drawing allowed are sufficient to continue normal operations and expects to meet financial covenants soon. Of course it is still somewhat worrisome that such a situation can arise.
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