Denmark's Vestas announces profit but Ørsted to cut jobs
Danish company Vestas, the world's number one wind turbine
maker, said Wednesday it returned to profit in 2023 following a record number
of orders. But Ørsted, another Danish wind power giant, has ordered job losses after
reporting a $3 billion loss.
Vestas's net profit for 2023 was 77 million euros ($87 million), up from a loss of 1.57 billion euros the previous year.
The value of its order backlog was 60.1 billion euros.
"We had a record year for firm and unconditional order intake in power solutions," the company said in its annual report.
It said this was "driven by strong onshore activity" in the United States and "good momentum" in Europe, the Middle East, Africa and Brazil.
Lifted by strong activity in its service sector the company's sales rose by 6.2 percent year-on-year to 15.4 billion euros, in line with analysts' expectations.
Onshore wind power remains the Danish group's core business, with sales of 10.7 billion euros, compared to 1.1 billion euro for offshore wind power.
For 2024, Vestas is forecasting revenue of between 16 and 18 billion euros.
"In 2024, continued geopolitical volatility is expected to cause uncertainty. Nonetheless, we expect a combination of higher installations and increased pricing to drive growth in revenue," the company said.
Ørsted meanwhile reported an annual net loss of 21 billion kroner ($3 billion)in 2023.
"Despite a year with strong underlying business progress, 2023 marked a year with substantial challenges for Ørsted," Mads Nipper, CEO of Ørsted, said
in a statement.
The company also announced an updated business plan, which would include a reduction of 600 to 800 positions, to "become a leaner and more efficient organisation."
"Not all reductions will result in redundancies, but there will be redundancies throughout 2024, and today, Ørsted is announcing that approximately 250 people globally will be made redundant and leave Ørsted within the coming months," Nipper said.
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Vestas's net profit for 2023 was 77 million euros ($87 million), up from a loss of 1.57 billion euros the previous year.
The value of its order backlog was 60.1 billion euros.
"We had a record year for firm and unconditional order intake in power solutions," the company said in its annual report.
It said this was "driven by strong onshore activity" in the United States and "good momentum" in Europe, the Middle East, Africa and Brazil.
Lifted by strong activity in its service sector the company's sales rose by 6.2 percent year-on-year to 15.4 billion euros, in line with analysts' expectations.
Onshore wind power remains the Danish group's core business, with sales of 10.7 billion euros, compared to 1.1 billion euro for offshore wind power.
For 2024, Vestas is forecasting revenue of between 16 and 18 billion euros.
"In 2024, continued geopolitical volatility is expected to cause uncertainty. Nonetheless, we expect a combination of higher installations and increased pricing to drive growth in revenue," the company said.
Ørsted meanwhile reported an annual net loss of 21 billion kroner ($3 billion)in 2023.
"Despite a year with strong underlying business progress, 2023 marked a year with substantial challenges for Ørsted," Mads Nipper, CEO of Ørsted, said
in a statement.
The company also announced an updated business plan, which would include a reduction of 600 to 800 positions, to "become a leaner and more efficient organisation."
"Not all reductions will result in redundancies, but there will be redundancies throughout 2024, and today, Ørsted is announcing that approximately 250 people globally will be made redundant and leave Ørsted within the coming months," Nipper said.
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