COPENHAGEN, Denamark, May 10 – World wind turbine leader Vestas said Wednesday it returned to profit in the first quarter after Russia’s invasion of Ukraine impacted the Danish group’s business last year.
The company reported a net profit of 15 million euros ($16.4 million) in the first three months of the year.
The group had posted a loss of 765 million euros in the first quarter of 2022, citing the fallout from the war and supply chain disruptions.
The company announced in April last year that it was leaving Russia following its invasion of Ukraine.
“Vestas has had a good start to 2023,” said chief executive Henrik Andersen.
The first quarter got a boost from the sale of the company’s converter business, lower warranty provisions and “solid profitability” in its service division, he said.
Wind turbine orders rose by 12 percent in the first quarter and revenue was up 14 percent to 2.8 billion euros as deliveries increased.
But Andersen cautioned that there still was “a long way to go” for the full year.
“The wind industry remains challenged by political uncertainty, slow permitting processes, and high inflation, which we expect to continue throughout 2023,” he said.
The group maintained its 2023 forecast unchanged, with sales ranging between 14 billion and 15.5 billion euros with an operating margin of three percent.
