Higher Pricing of Deliverables Takes Vestas Revenue Up 4% YoY in Q2 2023
The company narrowed its loss by 3% YoY during the quarter
Vestas Wind Systems, a wind turbine manufacturer, has recorded a net loss of €115 million (~$124 million) during the second quarter (Q2) of the financial year (FY) 2023, a marginal year-over-year (YoY) improvement of 3% from a loss of €119 million (~$128.5 million).
The company recorded a revenue of €3.4 billion (~$3.6 billion), a YoY growth of 4%. This was driven by 29% service growth and higher average pricing on deliverables, partly offset by lower volume.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) were recorded at €132 million, an improvement of 221% YoY.
During the quarter, wind turbine orders in GW grew by 8%, with an order intake of 2.3 GW. The value of the wind turbine order backlog was €20 billion (~$21.6 billion) as of June 30, 2023.
In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of €31.6 billion (~$34.1 billion).
This led to a cumulative value of the combined orders for wind turbines and service agreements, which reached €51.6 billion (~$55.7 billion), marking an increase of €3.7 billion (~$3.9 billion) in comparison to the same period in the previous year.
President and CEO Henrik Andersen said, “Vestas continued to improve underlying performance in the second quarter of 2023…the first half of the year unfortunately also highlighted that permitting and regulatory uncertainty remain a key challenge to speed up the energy transition, and although supply chain disruptions are easing off, we expect disruptions to continue throughout the second half of the year.”
Andersen concluded that the global business environment is expected to remain challenging for the rest of 2023; however, the company will make attempts to become profitable and ensure operational efficiency.
During the first half (1H) of the year, Vestas recorded a net loss of €99 million (~$107 million), a massive improvement of 89% YoY as compared to a loss of €884 million (~$955.8 million) in 1H 2022.
During the January-June period, the company recorded revenue of €6.26 billion (~$6.7 billion), an 8.6% growth YoY.
EBITDA was recorded at €368 million (~$397 million), an improvement of 1652% YoY from a loss of €21 million (~$22.7 million).
Recently, Vestas announced that it had dispatched one of India’s largest 3.6 MW nacelle from its factory in Chennai for Vibrant Energy’s 54 MW wind project in Maharashtra. Vestas would move closer to completing the installation of its first 3.6 MW turbine in India by the end of this month.
In March, the company said it would supply wind turbines for two projects with a combined capacity of 1.3 GW to renewable energy developer Casa dos Ventos in Brazil.