Vestas has reported an interim loss of €182m before special items in the second quarter of 2022, compared to an operating profit of €94m for the same period in 2021.
After special items, which include a reversal of previously recognised impairment losses at factories in Lauchhammer and Esbjerg, the turbine manufacturer still reported a loss of €147m.
Vestas meanwhile generated revenue of €3,305m in the quarter – a decrease of 7% compared to the same period in 2021.
The quarterly intake of firm and unconditional wind turbine orders amounted to 2153MW, the directors reported, and the value of the wind turbine order backlog was €18.9bn as of 30 June 2022.
In addition to the wind turbine order backlog, at the end of the quarter, Vestas had service agreements with expected contractual future revenue of €31.3bn.
The value of the combined backlog of wind turbine orders and service agreements stood at €50.2bn – an increase of €2.1bn compared to the year-earlier period.
Group president & chief executive Henrik Andersen (pictured) blamed the results on “geo-political uncertainty and supply chain disruptions in the first half of 2022 that have caused costs to increase and an energy crisis to unfold”.
He said: “This development underlines the urgent need for a sustainable energy transition and drives stronger policy support for renewables across the globe but also creates a highly challenging business environment that negatively impacts Vestas’ financial results.
“In this environment, we achieved a revenue of €3.3bn in the second quarter of 2022, and in accordance with our guidance for the full year, profitability remained challenged with an EBIT margin of 5.5%.
“In the quarter, our Service revenue grew 12.5% year-on-year, but was negatively impacted by one-offs related to a few projects in specific geographical areas.
“We reinforced our onshore leadership with an order intake of 2.2GW and an average selling price on onshore wind turbines of EUR 0.96m/MW, a 22% increase year-on-year.
“The sustained price increases show we maintain the discipline to protect value creation and pave the way towards our profitability target.
“We continue to execute on our strategy to ensure Vestas continues to lead the energy transition and is ready to profitably grasp future growth.
“Everyone at Vestas is doing a great job in very tough circumstances, and we remain thankful for the ongoing support from our customers and partners.”