US onshore wind tower producer Broadwind is considering potential opportunities to enter into the offshore wind sector.
Company chief executive Eric Blashford said offshore wind is viewed as a “significant, untapped opportunity” for Broadwind.
He said: “We are currently evaluating strategic alternatives that have the potential to provide an attractive entry point into offshore wind.
“As an established producer of onshore wind towers, the transition to offshore represents a natural progression for our business, one with the potential to drive sustained demand for our expertise.”
Meanwhile, increased demand for onshore towers boosted Broadwind’s sales in its heavy fabrications unit by over $14m in the second quarter of 2020, compared with the same period of last year.
Total operating income in the business unit increased $2.9m to $3.2m, when compared to the second quarter 2019.
Overall, the US company increased revenue by 33% to $54.9m in Q2 2020 on last year, while net profit was $0.5m compared with a loss of $1m in 2019.
Growth in heavy fabrications and the industrial solutions segments more than offset a decline in the gearing segment revenue during the second quarter 2020, it said.
Blashford said: “Despite continued macro uncertainty related to the Covid-19 pandemic, our business performed well during the second quarter, guided by our long-term focus on end-market diversification, lean manufacturing processes and disciplined capital management.
“Total revenue increased by more than 30% when compared to the prior-year period, resulting in our second consecutive quarter of profitability.
“This strong performance was supported by broad-based revenue growth across our core wind, industrials, steel and natural gas turbine markets during the period.”
He added that so far this year the company has booked approximately 90% of its optimal wind tower production capacity for the full-year 2020.
Blashford said: “We sold 320 wind tower sections during the second quarter, an increase of nearly 60% when compared to the year-ago period.
“For the full-year 2020, we anticipate Broadwind will generate year-over-year growth in revenue, net income and adjusted EBITDA.
“We expect our financial performance in the second half of 2020 will be largely comparable to what we achieved during the first half of the year, with our internal forecast calling for strong sequential growth between the second and third quarters of 2020.”
But, he noted, “while we are encouraged by the demand drivers for wind energy and our diversification progress, demand within our markets has begun to soften, as customer projects are postponed due to the impact of Covid-19” pandemic.
He said: “Looking ahead, we anticipate this uncertainty will impact our fourth quarter results, with expectations for a recovery during the first half of 2021.”