Page 4 - AsiaElec Week 44 2022

AsiaElec COMMENTARY AsiaElec

Vestas reins in outlook

as inflation and the

energy crisis continue

COMMENTARY WIND giant Vestas has reduced its financial down from a previous estimate of €1,000mn.
expectations for the year because of pressures The company recorded a bigger-than-ex-
from inflation and the energy crisis that followed pected operating loss for the Q3 period of
Russia’s invasion of Ukraine. Vestas wind tur- €127mn despite turbine price increases. That
bines accounted for the most installed capacity was down from €318mn in the same quarter in
globally in 2021, according to the Global Wind 2021. Vestas reported a net loss of €147mn for
Energy Council. Q3, compared with a year-ago profit of €116mn.
The Denmark-based manufacturer said that Group president & CEO Henrik Andersen
in Q3 of 2022, “the business environment with said: “In the third quarter of 2022, Vestas con-
supply chain instability and cost inflation did not tinued to increase the average selling price of
wane. Additionally, delays on project deliveries our wind energy solutions and build further
led to higher costs related to executing on cus- momentum within offshore wind, although
tomer commitments.” geo-political uncertainty and high inflation
It is now anticipating an operating loss for impacted execution cost and activity levels in
2022, with revenue expected to range between the wind industry.”
€14.5bn ($14.3bn) and €15.5bn compared with a He noted that despite the headwinds, the
previous projection of €14.5bn-16.0bn. Its EBIT company achieved revenue of €3.9bn despite
margin before special items – a measure of prof- project delays, while its service business grew
itability – has been adjusted to approximately more than 30% with a “solid” EBIT margin of
-5%, down from a range of -5% to 0%. 24.5%, providing stability during a very chal-
The company said that total investments – lenging period. Its revenue decreased by 29%
excluding acquisitions of subsidiaries, joint ven- year on year, driven by project delays, the com-
tures, associates and financial investments – are pany said.
now anticipated to amount to some €850mn, Andersen highlighted the company’s growing

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