Positive spin

5 May 2022 By Ed Cropley Follow @edwardcropley

Denmark’s Vestas and rival Siemens Gamesa have failed to turn booming demand for wind farms into higher earnings. Increased prices to offset soaring raw material costs will take several years to kick in. But now wind power is cheaper than fossil fuels, price pressures are easing.

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Wind turbine maker Siemens Gamesa Renewable Energy said on May 5 its 2022 outlook remained under review due to problems with its supply chains and production of its new 5X onshore platform.

The Spanish-German company reported an adjusted operating loss for the three months to March of 304 million euros. Revenue fell 7% year-on-year to 2.2 billion euros.

For 2022, Siemens Gamesa said it was expecting revenue to decline between 2% and 9% from 2021 and an adjusted operating margin of minus 4%. However, it warned that it did not have “the usual degree of certainty” about its prospects.

Danish rival Vestas Wind Systems on May 2 reported an operating loss before special items of 329 million euros for the first quarter, and cut its margin forecast to between 0% and minus 5%, from 4% to 0%, due to raw material and freight inflation.

Siemens Gamesa shares were up 1.3% at 15.43 euros by 0809 GMT on May 5. Vestas shares were up 2.6% at 178.5 Danish crowns.

Context News

Wind turbine maker Siemens Gamesa Renewable Energy said on May 5 its 2022 outlook remained under review due to problems with its supply chains and production of its new 5X onshore platform.

The Spanish-German company reported an adjusted operating loss for the three months to March of 304 million euros. Revenue fell 7% year-on-year to 2.2 billion euros.

Siemens Gamesa shares were up 1.3% at 15.43 euros by 0809 GMT on May 5. Vestas shares were up 2.6% at 178.5 Danish crowns.

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