And our next question is from Casper Blom from ABG. And before we take the numbers, I just wanted to highlight here, it goes without saying that as we are in August, as some 142 days to go in the year, the important note here is that the basic assumptions does right now come with a higher uncertainty than normal because we are still in the middle of it and we talked about the epicenters of COVID-19 around the world. And free cash flow before financial investments are more or less in line with last year despite the high increase in the change – or high change in working capital, so we come down to a negative of €78 million compared to €75 million last year. So that's nothing in reality and is then positive for the quarter. Yes hi, hello. So do you have any initial comments or initial color about how we should be thinking about volumes and revenues into 2021? And as you would appreciate, both in terms of project life cycle and product life cycle, we have a longer life cycle in offshore and we are fully aware of. But so far, we've done a very good job to accommodate our global presence.
Okay. And we see extra cost, in particular, for the transportation and the logistics for the turbine operations. [Operator Instructions] Our next question is from Mark Freshney from Crédit Suisse. Yes, good morning. And therefore, that's also the message for everyone here, we're in Q3 now and we continue to push on both in terms of order intake and also deliveries. Thanks. And our next question is from Akash Gupta from JPMorgan. Are they frustrated that they can't move ahead with new projects? First of all, Jacob, and I would just suggest that this is the last questions we are taking, not your last question but you are the last person. Obviously, the guidance you've given today implies that your ability to install and recognize revenue this year isn't actually going to be impacted by the pandemic at all. On the day of the disclosure, Vestas will host an earnings call/ live audiocast with a presentation of the results by the CEO and CFO. And the question I have is that, by when do you expect that majority of these large orders that you announced will come from EnVentus? Then the second one is on – still going back to some of the warranty provisions and related to the EnVentus platform. And when it comes to the cash flow and obviously your assumption on that we're building for the high activity level that we anticipate here in the second half considering the €14 billion to €15 billion that we are guiding for is absolutely correct. Yes. I mean could it be possible by this year, let's say, maybe by Q4 based on your pipeline? I realize, of course, that the COVID-19 still is cause for some concern and uncertainty on that part. So in Q2 2020, we had strong performance in, again, a challenging environment, and we have gone through this without having any – received any state aid in any of our countries. And how much is effectively lower CapEx due to general precautionary measure? Thank you for taking my questions. Please go ahead.
Do we – shall we expect an impact on next year margin because of some delays to projects, like I don't know how it fits in your P&L, but let's say if you have a project where you account for revenues and cost at the completion of projects, and if that project has some cost overruns, then how that will hit the P&L? Okay, I think, on the guidance, as we shortly touched upon here, I think us, customers, anyone who works together with us will all have the same interest in trying to get things done as quickly as we can. And then we got a 2020 and 2021 possibility later in this year. And there, in terms of the competitive positioning of MHI Vestas versus the competitors, and we know that GEGE has a 12-megawatt, Siemens Gamesa, of course, recently launched a 15-, 16-megawatt turbine. And obviously, what we're talking about now is the full year for 2020 and the activities regarding warranty is included in that guidance.
So what is the further scope of R&D in the onshore energy? It also leads to an all-time high backlog of – in excess of €35 billion. And then my second question would be on repowering demand. And of course, we will be evaluating that also for the quarters and the years to come. That sounded very much in a couple of questions in excess, but that's okay. So that means we are simply just adjusting and saying this is the conditions we are working under. If and when we feel that there's something new to comment on, on the product road map, we will do it in a proper terms and not as an extraordinary thing under the quarterly investor here. So it is mainly the latter that is taking down the gross margin below 10% even when we exclude the provisions? And on top of it, you have the €175 million. We follow it very closely. And you would also have seen from the announcement that we have passed 100 gigawatt on the Service. But can you quantify the total cost of this specific issue then?
We have a broad-based order intake from across EMEA, and that has not yet been influenced by the Green Deal, but of course, we also take a note of that a lot of countries are now talking about green recovery program as part of also looking ahead, not only to the coming year but probably more to the coming decade of that green renewable transition.
Thanks. So we are doing – I think we have done a lot really well here. And therefore, it's nice to see that, especially in Japan and Vietnam, we can actually see that there is a traction from the local customers wanted to do more projects. And that leaves us with discussing and putting, as we said here, reinstatement of our guidance for the year. I think it's fair saying everyone are fully dedicated, fully on board, trying to do more projects. I don't think anyone has a silver bullet. And thus, in theory, the price per megawatt would also come down. Thanks a lot.
Warranty provision and the lost production factor, you see here that we make an extraordinary provision of €175 million here in the quarter and also making the 3% – or to be correct, 3.1% in the quarter. And maybe this question fits into your answer just – how you just answered, Marika, because I would like to get maybe a bit more wording on EBIT margin guidance. Okay, Mark. We also positively here have seen a – start building of a pipeline in 2021 deliveries for the U.S. We have had more than one gigawatt of order intake for the U.S. in the second quarter. And I know we will meet quite a number of each other over the virtual room, so to say, over the coming days. Thank you for taking my question. We haven't been talking too much about those this year. Okay. Vestas Wind CEO Discusses Q2 2010 Results - Earnings Call Transcript Log In Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Of course, with the usual caveat of that geography, turbine and scope, of course, influence the ASP of €0.78 million. And as you would see, we have nearly now at €19 billion in the Service. Or are you already building inventory for expectations of a strong 2021? Revenue was €3.5 billion. But as I said, in the bigger scheme of things, I think we will then end up having discussion point that we might end up having a shorter lead time to put the projects up, which then maybe come shorter than the normal 18, 24 months, so not really that. So repowering, I think, the repowering across the world is picking up. So given that onshore wind energy has been the most competitive source of renewable energy, it's highly competitive versus other sources of energy, so how do we see the R&D cost trending in the coming years? Yes. And it also leads to that when we then set out to do that, it was with business continuity as the prime driver for us when the COVID-19 broke out in February in China.