Vestas swings to 2023 profit on record orders

COPENHAGEN

Vestas, the world's number one wind turbine maker, said yesterday it returned to profit in 2023 following a record number of orders.

But Orsted, another Danish wind power giant, has ordered job losses after reporting a $3 billion loss.

Vestas's net profit for 2023 was 77 million euros ($87 million), up from a loss of 1.57 billion euros the previous year.

The value of its order backlog was 60.1 billion euros.

"We had a record year for firm and unconditional order intake in power solutions," the company said in its annual report.

It said this was "driven by strong onshore activity" in the United States and "good momentum" in Europe, the Middle East, Africa and Brazil.

Lifted by strong activity in its service sector the company's sales rose by 6.2 percent year-on-year to 15.4 billion euros, in line with analysts' expectations.

Onshore wind power remains the Danish group's core business, with sales of 10.7 billion euros, compared to 1.1 billion euro for offshore wind power.

For 2024, Vestas is forecasting revenue of between 16 and 18 billion euros.

"In 2024, continued geopolitical volatility is expected to cause uncertainty. Nonetheless, we expect a combination of higher installations and increased pricing to drive growth in revenue," the company said.

Orsted meanwhile reported an annual net loss of 21 billion kroner ($3 billion)in 2023.

"Despite a year with strong underlying business progress, 2023 marked a year with substantial challenges for Orsted," Mads Nipper, CEO of Orsted, said in a statement.