Vestas Posts Negative Adj. EBIT In 2022

Vestas Wind Systems A/S (VWDRY.PK) reported fiscal 2022 EBIT margin before special items of negative 8 percent. The company said its EBIT was hampered by supply chain disruptions, inflation, higher warranty provisions and offshore impairments. Operating result before special items was negative at 1.15 billion euros compared to EBIT before special items of 428 million euros, prior year.

Fiscal 2022 revenue was 14.49 billion euros, down from 15.59 billion euros, prior year, driven by Russia/Ukraine exit as well as project delays. Total investments was 758 million euros, for the year.

"Throughout 2022, increasing costs, product impairments and increased warranty provisions heavily impacted our profitability and resulted in an EBIT margin of minus 8 percent," Henrik Andersen, Group President & CEO said.

For 2023, Vestas expects: revenue to range between 14.0 billion euros and 15.5 billion euros, including Service revenue. Vestas expects to achieve a EBIT margin before special items in a range between negative 2% and positive 3 percent, and total investments to amount to approximately 1 billion euros in 2023. Revenue in the Service segment is expected to grow by minimum 5 percent in 2023, with a service EBIT margin of approximately 22 percent.

The Board of Vestas proposed to the AGM that no dividend payment will be distributed to the shareholders in 2023.

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