By Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) – Wind turbine maker Vestas warned on Friday of a slower year ahead after reporting disappointing 2022 sales hampered by project delays and impairments.
The company said slow permitting processes in Europe and reduced activity in the US before the impact of the Reducing Inflation Act kicks in will mean fewer wind turbine installations this year.
“In 2023, we expect high levels of inflation across the supply chain and reduced wind power installations to negatively impact revenue and profitability,” it said in a statement.
Despite growing demand for renewable energy, the wind energy sector is under pressure from rising metal prices and increased competition, while at the same time being unable to pass on higher costs to customers who placed their orders two or more years ago. three years.
To mitigate the impact of higher inflation and pressure on profit margins, turbine manufacturers raised prices last year.
Vestas’ revenue in 2022 stood at 14.49 billion euros, according to preliminary results, slightly below the projected range.
The company expects revenue this year between 14.0 billion and 15.5 billion euros, with an earnings before interest and tax (EBIT) before special items of between minus 2% and plus 3%. Its Ebit margin was -8% last year.
Vestas is due to report full financial results on February 8.
(By Jacob Gronholt-Pedersen)
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