US blade manufacturer TPI Composites reported blade net sales up 12% in the last three months of 2020, compared with the same period of 2019, helping to push the company’s net income back into the black.
Sales increased by $47.7m to $445.5m, compared with $397.8m in the same period in 2019.
The increase was primarily driven by a higher average sales price due to the mix of wind blade models produced during the three months ended 31 December 2020, as compared with the same period in 2019.
There was also a 4% increase in the number of blades produced during the three months to the end of the year as a result of increased production at the company’s Mexico, India and Iowa facilities.
The fluctuating US dollar against the euro and the Chinese Renminbi also had a favourable impact of 1.2%.
However, TPI said that, despite the increase, net sales were adversely impacted by approximately $6m, based on several wind blade sets, which we had forecasted to produce in the period under non-cancellable purchase orders associated with our long-term contracts but were unable to do so as a result of the Covid-19 pandemic.
Increased sales help boost net income for the three months ended 31 December 2020 to $5.2m, up from a net loss of $0.9m in the same period in 2019.
Adjusted EBITDA for the last quarter of 2020 increased to $40.8m, compared with $32.0m during the same period in 2019.
TPI Composites president and chief executive Bill Siwek said: “Strong long-term demand prospects for wind in the US and globally, driven by economics as well as the acceleration of decarbonization initiatives, give us confidence in our global wind strategy as we continue to serve our customers in an efficient and cost-effective manner across our global manufacturing footprint.”