Vestas Scraps Dividend After Confirming Challenging 2022

By Dominic Chopping

Vestas Wind Systems AS on Wednesday confirmed pre-announced earnings and said it won't pay a dividend after supply-chain disruptions, inflation, provisions and impairments all hampered profitability in 2022.

The Danish wind-turbine maker had pre-announced 2022 results with revenue of 14.49 billion euros ($15.55 billion), versus its previously guided EUR14.5 billion-EUR15.5 billion, with a negative earnings before interest and tax margin before special items of 8.0% versus the guided minus 5%.

The company previously said that project delays, an impairment and provisions all weighed in the fourth quarter. Additional warranty provisions of EUR210 million were booked in the fourth quarter related to repair and upgrade costs, and a EUR95 million impairment was booked due to challenged profitability and lower orders of its V174 turbine.

Vestas reported fourth order intake of EUR4.8 billion from EUR2.5 billion, while the total turbine and service order backlog rose to EUR49.5 billion from EUR45.9 billion.

Service revenue is expected to grow by at least 5% in 2023, with a service EBIT margin of around 22%.

The company said it still sees full-year 2023 revenue at EUR14.0 billion-EUR15.5 billion, an EBIT margin before special items of minus 2% to 3% with total investments of around EUR1 billion.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

February 08, 2023 03:23 ET (08:23 GMT)

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