Vestas, one of the world's leading wind turbine manufacturers, has reported a return to profit in the first quarter of 2023. The company recorded earnings before interest and tax (EBIT) of €40m, a significant improvement from the €329m loss reported in the same period last year.
The turnaround is attributed to several factors, including the sale of its converter business, lower warranty provisions, and a strong performance by its service arm. Vestas also reported a rise in the number of firm and unconditional wind turbine orders, amounting to 3303MW with an average price per MW of €0.89m.
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Despite the positive start to the year, Vestas acknowledges the challenges facing the wind industry, such as political uncertainty, slow permitting processes, and high inflation. However, the company remains on track to achieve its full-year guidance, with expected revenue of €14.0bn-15.5bn, including service revenue, which is expected to grow by a minimum of 5%.
Group President and CEO Henrik Andersen credited the growth to higher value and increased volume of delivered projects, as well as a 29% increase in service revenue. He also stressed the importance of maintaining industry discipline and maturity to return Vestas and the industry to profitability and prepare for future growth.
Vestas' wind turbine order backlog was valued at €19.7bn as at 31 March 2023, with service agreements expected to generate future revenue of €31bn. The combined backlog of wind turbine orders and service agreements stood at €50.7bn – an increase of €1.8bn compared to the previous year.
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The company thanked its customers, partners, and more than 28,000 employees for their support in getting Vestas back to profitability and powering the energy transition. While there is still a long way to go for the full year, Vestas remains focused on delivering on its promises to its stakeholders and continuing to drive the wind industry forward.
