Nordex Group, a German wind turbine manufacturer, has reported a widened loss of 9% in the first quarter of 2023. The company recorded an EBITDA loss of €114.9m, compared to a €88.9m deficit for the same period in 2022, resulting in an EBITDA margin of -9.4%, slightly better than the -9.5% in the first quarter of 2022. Despite this, the first three months of 2023 saw an increase in sales, generating €1.2bn, up from €933m in the first quarter of 2022.
This sales growth in the first three months of the year is attributable to higher installation output than at the start of the previous year, the board said. Both the average installed capacity (in MW) per turbine and the number of installed wind turbines increased, they added. The Nordex Group erected 276 wind turbines in 19 countries with an aggregate output of 1319MW in the first quarter of 2023.
In terms of installed capacity (in MW), 54% was attributable to Europe, 25% to Latin America, 14% to North America, and 7% to the rest of the world.
Despite the company's financial losses, Nordex Group CEO José Luis Blanco remains optimistic. “Overall, the year began as expected, and we increased our installation output in the first quarter,” he said. “We are still focused on processing our order book efficiently, as the high costs associated with old projects are still adversely impacting our margins. In this respect, we expect to steadily improve our profit margin over the course of the year due to our revised pricing and contract arrangements. Overall, we continue to see improving volumes in our key markets, on the back of positive political momentum.”
In May, the Nordex Group completed a shareholder loan swap with Acciona, successfully converting €347m in loans into equity at a price of €14.15 per share. This move will reduce the interest burden by approximately €46 million annually and strengthen the company's capital structure. The company also issued a convertible bond in April, raising €333m in issue proceeds, bolstering its liquidity.
See also: Nordex to Power Up Lithuania's ‘Jurbarkas II' Wind Farm with Eleven Delta4000 Series Turbines
The CEO's optimism combined with the company's recent financial moves gives reason to believe that Nordex Group will recover from its current losses and continue to grow in the coming years. As renewable energy continues to gain political momentum worldwide, Nordex Group's position in the wind turbine market looks secure.
As José Luis Blanco aptly puts it, “We believe that the green transition represents a significant opportunity for us, and we are working hard to deliver on our promise of sustainable and efficient wind energy solutions for our customers.”
