Vestas swung to a loss in the third quarter of the year, prompting the Danish turbine manufacturer to cut its full-year outlook.
The company recorded a pre-tax loss of €171m for the last three months, compared to a €163m profit in the year-ago period.
Chief executive Henrik Andersen blamed “geo-political uncertainty and high inflation”, which impacted execution cost and activity levels in the wind industry.
The company added supply chain instability “did no wane” during the period and highlighted “delays on project deliveries”.
Revenue for the three months was 29% lower than last year at just over €3.9bn with the EBIT margin before special items turning negative to -3.2% compared to 5.7% in the third quarter of 2021.
Vestas said it was downgrading its guidance for the year following the poor third quarter.
Revenue is now expected at €14.5bn-€15.5bn during the year, down from a higher end target of €16bn.
The company has also confirmed its annual EBIT margin before special items will be negative, having previously been of the view it could be zero.
Vestas meanwhile will spend less on investments with a new goal of €850m, down from €1bn.
“It should be emphasised that there is greater uncertainty than usual around forecasts related to execution in 2022, and the outlook seeks to take into account the current situation and challenges,” added the company.
Andersen said: The energy crisis incentivises a faster transition to an energy system built on renewables and ambitious political agreements such as the Inflation Reduction Act in USA strengthen the underlying demand for wind energy solutions, but project development and order intake remain impeded by energy market uncertainties and red tape.”