Nordex SE (ETR:NDX1) saw its first-quarter net loss expand as a 30% increase in sales was not enough to offset high costs associated with old projects.
At EUR 214.8 million (USD 234.7m), the consolidated net loss was 42.7% bigger than a year earlier, while the operating loss (EBITDA loss) expanded 29.2% to EUR 114.9 million, the German wind turbine manufacturer said on Friday.
The worse earnings performance is a result of a 12% increase in the cost of materials, which comprise expenses for construction components, to EUR 1.13 billion and a 29% rise in structural costs to EUR 222.7 million.
Sales grew 30.5% year-on-year driven by an increase in both the average installed capacity (in MW) per turbine and the number of installed wind turbines.
The table below provides details about Nordex’s financial results in the first quarter of 2023.
|in EUR million||Q1 2023||Q1 2022||Change (%)|
|— thereof Service segment||151.8||115.7||31.3|
|EBITDA margin||(9.4)||(9.5)||(0.1 PP)|
|Net profit (loss)||(214.8)||(150.5)||(42.7)|
|Order book (Projects)||6,458||6,299||2.5|
|Order book (Service)||3,405||3,041||12|
In the first three months of 2023, Nordex installed 276 wind turbines with an aggregate capacity of 1,319 MW compared with 197 machines of a combined 867 MW that were set up a year back.
The higher installation figures boosted sales in the Projects segment by 30.3% to EUR 1.07 billion.
The group manufactured a total of 217 turbines with a nominal capacity of 1,078 MW, which represents a decline from the first quarter of 2022 when turbine output was 304 units with a combined capacity of 1,495 MW.
Order intake in the Project segment grew slightly to EUR 917 million from EUR 903 million a year earlier with most orders coming from Estonia, Germany and Lithuania.
“Overall, the year began as expected and we increased our installation output in the first quarter. We are still focused on processing our order book efficiently, as the high costs associated with old projects are still adversely impacting our margins. In this respect, we expect to steadily improve our profit margin over the course of the year due to our revised pricing and contract arrangements. Overall, we continue to see improving volumes in our key markets, on the back of positive political momentum,” said chief executive Jose Luis Blanco.
The outlook for 2023 was reiterated.
(EUR 1 = USD 1.093)