Latest Issue
 
Windtech International July August 2024 issue

 

FOLLOW US AT

follow

 

follow


Floris Siteur 2024Returning to profitability
The last few years have been challenging for the wind energy sector, with high interest rates, cost inflation resulting in higher costs per megawatt, and supply chain issues. For the year 2022, almost all wind turbine OEMs reported negative results, but it seems that this situation is improving since some of the OEMs have returned to profitability.
 
For the year 2023, Vestas achieved a revenue of € 15,382 million with an EBIT margin before special items of 1.5%. In 2024, revenue is expected to range between € 16 billion and € 18 billion, including service revenue. Vestas expects to achieve an EBIT margin before special items of 4 to 6%.
 
Also, Nordex reported positive figures for 2023. Sales grew by 14% to € 6.5 billion (2022: € 5.7 billion). EBITDA reached the operating break-even point at € 2.0 million (2022: −€ 244.3 million). This corresponds to a margin of 0% (2022: –4.3%). For 2024, the Nordex Group expects consolidated sales of € 7.0 billion to € 7.7 billion and an EBITDA margin of 2.0 to 4.0%.
 
Although not yet profitable, GE Vernova reported better results for 2023 than for 2022. The renewable energy businesses of GE Vernova made a US$ 1.4 billion loss in 2023, an improvement from a loss of US$ 2.24 billion in 2022. Revenues increased by 16% to US$ 15 billion compared with US$ 12.9 billion in 2022. According to reporting by the company, its grid business unit was profitable for the full year of 2023, and its onshore wind business unit was profitable in the second half of 2023.
 
Siemens Gamesa is a different story. The wind business of Siemens Energy, of which Siemens Gamesa is a subsidiary, continues to face major challenges, which has led to a net loss in 2023. In the past financial year, Siemens Gamesa suffered an unexpected, serious setback. Charges for quality issues in the onshore business, increased product costs, and ramp-up challenges in the offshore business severely impacted the results for the fiscal year 2023 and will continue to impact the group’s profitability in the near to mid-term. Siemens Energy’s profitability was severely impacted by the large loss at Siemens Gamesa. Profit before special items decreased to −€ 2,776 million. Break-even at Siemens Gamesa is now expected in fiscal year 2026.
 
The total amount of newly installed capacity globally has not been published yet, but the future looks promising. Figures published by the World Wind Energy Association (WWEA) show that the world installed 41.2GW in the first half of 2023, which is 38% more than in 2022. Accordingly, and based on official statistics and the estimations of its members, WWEA expects a total new capacity addition of at least 110GW throughout the whole year 2023, reaching a total installed capacity of more than 1,000GW globally.
 
WindEurope has published its annual statistics and seven-year outlook, indicating that the wind energy target of the European Union (EU) for 2030 is attainable. In 2023, the EU added 16.2GW of new wind energy capacity, with 79% being onshore wind. Over 1GW was contributed by the repowering of old turbines. WindEurope forecasts that the EU will average 29GW of new installations annually from 2024 to 2030. This trajectory would bring the EU’s installed wind capacity to 393GW by 2030 compared with the 425GW required to meet Europe’s climate and energy targets.
 
To learn more about the (European) wind industry, visit WindEurope’s annual onshore and offshore wind energy event, which will be heading to Bilbao, Spain, again for a three-day conference and exhibition from 20 to 22 March. Over 12,000 attendees are expected, and there will be dozens of conference sessions, hundreds of speakers, and 500+ exhibitors from the whole value chain looking to showcase their innovations and seal new deals. See you there!
 
Enjoy Reading,
 
Floris Siteur
Publisher
 
Use of cookies

Windtech International wants to make your visit to our website as pleasant as possible. That is why we place cookies on your computer that remember your preferences. With anonymous information about your site use you also help us to improve the website. Of course we will ask for your permission first. Click Accept to use all functions of the Windtech International website.