GE Vernova’s wind turbine business is expected to record a $300m loss in the third quarter 2024.
In its full year 2024 financial guidance, the company stated the reason is due to ongoing offshore wind costs, despite onshore wind delivering a fifth straight quarter of profitability.
GE Vernova expects “incremental strength” in its power and electrification segments, with both trending towards the higher end of EBITDA margin guidance, “to offset additional costs in its wind segment, due to the recent offshore wind blade events”.
CEO Scott Strazik blamed costs related to construction delays in two projects where GE Vernova is currently installing turbines, the 1.2GW Dogger Bank A in the UK and the 804MW Vineyard Wind in the US.
“We didn’t get anywhere near as much work done over the course of the summer as we anticipated,” Strazik said, adding that installation has resumed at Dogger Bank while work at Vineyard Wind is still restricted to towers and nacelles.
Strazik said that while the company had hoped its wind division would be profitable in the third quarter, the profitability is likely delayed until the fourth quarter.
“We do expect to see modest profitability in the wind segment in Q4 24,” the CEO said.
“We need the next 90 days to start to reaccelerate installation and commissioning.”
The $300m loss in the company’s wind division comes despite five straight quarters of profitability in the wind division’s onshore segment.