Vestas has recorded an operating EBIT loss of €68m for Q2 2023, an improvement on the €147m loss reported in the same period in Q2 last year.
The quarterly intake of firm and unconditional wind turbine orders amounted to 2333MW, an 8% increase from second quarter 2022, the company reported.
The onshore average price per MW (ASP) was €0.97m, while the value of the wind turbine order backlog was €20bn at 30 June 2023.
In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of €31.6bn.
This meant the value of the combined backlog of wind turbine orders and service agreements stood at €51.6bn – an increase of €3.7bn compared to the year-earlier period.
Group president and chief executive Henrik Andersen (pictured) said: “Vestas continued to improve underlying performance in the second quarter of 2023, and based on the first half of the year, we remain on track to achieve our financial outlook for 2023.
“In the second quarter, our revenue was €3.4bn, a 4% increase year-on-year, which was secured by higher value of turbine deliveries and strong growth in our service business.
“In line with expectations and the continued execution of older projects with lower margins in our backlog, we achieved an EBIT margin of minus 2%.
“We received 2.3GW of orders with an average selling price on our onshore solutions that returned to €0.97m/MW.
“The first half of the year unfortunately also highlighted that permitting and regulatory uncertainty remain a key challenge to speed up the energy transition, and although supply chain disruptions are easing off, we expect disruptions to continue throughout the second half of the year.
“Vestas remains fully focused on becoming profitable and improve industry maturity and discipline to ensure the operational efficiency, quality, and scalability the energy transition requires.
“The global business environment is expected to remain challenging for the rest of 2023, and we want to thank our customers, partners and 29,000 colleagues for their continued support and engagement in making Vestas and the industry profitable.”