Higher Wind Turbines Sales Drive Nordex’ 1H 2023 Revenue Up 27%
The company recorded ~$3 billion in sales during the period
Germany-based wind turbine manufacturer Nordex Group reported revenue of €2.8 billion (~$3 billion) in the first half (1H) of 2023, a year-over-year (YoY) increase of 27.2% compared to €2.2 billion (~$2.4 billion) in 1H 2022.
The company’s net loss during the period was of €298.8 million (~$327.5 million), a 5.5% year-over-year (YoY) decrease compared to €283.1 million (~$310.3 million).
The improvement in revenue and net loss can be attributed to the significant increase in sales, reaching around €2.8 billion (~$3 billion) during the January to June period, a 33% increase compared to €2.1 billion (~$2.3 billion) during the corresponding period in 2022.
The order intake for 1H 2023 was recorded at over 2.6 GW, compared to the previous year’s 3 GW, with an improved average selling price of €890,000 (~$979,880)/MW compared to 1H 2022, where it was €790,000 (~$ 869,766)/MW.
This was primarily due to the increase in installation activities, which resulted in higher consolidated sales.
The company said that despite the higher number of installations during the year’s first half, Nordex built up a small number of inventories to account for future business volumes.
During January-June of 2023, turbine assembly production slightly decreased to 2,886 MW compared to the previous year’s 2,935 MW.
The company manufactured 506 rotor blades while sourcing 1,718 rotor blades from external suppliers.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at a loss of €114.31 million (~$125.4 million), a YoY improvement of 34% compared to €173.27 million (~$190 million).
During the second quarter (Q2) of 2023, the company’s EBITDA managed to break even, recording €600,000 (~$657,467). The sales during Q2 were recorded at €1.54 billion (~$ 1.6 billion), and the service order backlog was at over €3.4 billion (~$3.7 billion).
José Luis Blanco, CEO of the Nordex Group, said, “The second quarter performance was in line with our expectations. We have improved our installation run rate compared with the previous year and further strengthened our balance sheet through a couple of transactions. Our order intake momentum continues to be healthy as we enter the second half of the year. The aim is to continue this path and process our orders efficiently and successfully.”
The company said its balance sheet was strengthened by issuing the €333 million ($365.3 million) convertible bonds in April and converting the €347 million (~$380.8 million) shareholder loans into equity in May 2023.
The wind turbine manufacturer placed €333 million worth of new green convertible bonds due in 2030. The bonds, with a denomination of €100,000 (~$109,043), will be convertible into new or existing ordinary bearer shares of Nordex.
Earlier in January, the company received an order from the UK-based renewable energy developer SSE Renewables to supply 29 N117/3600 turbines for the Yellow River wind farm in Ireland. The contract also comprises service for the turbines after they are commissioned.