The world's largest wind turbine manufacturer, the Danish company Vestas Wind Systems, recorded heavy losses in the first quarter and lowered its profit forecast for 2022 due to the war in Ukraine.
Vestas management has warned that the Russian invasion of Ukraine will exacerbate the slowdown in the wind industry, the publication reported The Financial Times.
The company said its first-quarter profit rose 27% to €2.5bn, but it reversed an operating loss to special items of €329m from a profit of €251m a year ago.
So the wind industry suffered from severe cost inflation and disrupted supply chains as soon as it managed to become price-competitive with fossil fuel energy sources.
Vestas chief executive Henrik Andersen called it "a very challenging business environment and the unfolding of an energy crisis" as Western countries grapple with how to end their dependence on Russian oil and gas while keeping electricity prices relatively low.
“However, the growing energy crisis has also led to increased political support for renewables to increase energy independence and keep energy prices low, and we are strengthening our foundation to support governments and clients in achieving these goals,” he added.
Vestas warned that it now expects its operating income before special items to be between 0% and -5% this year, compared to the previous range of 0% to 4%. Revenue should now be between €14.5bn and €16bn, compared to the previous forecast of €15bn and €16.5bn.
They also added that Vestas shares on Monday, May 2, fell by 8% to 168.82 Danish kroner, which is the lowest level in the day before Russia's invasion of Ukraine in February.
Recall that Vestas left the Russian market due to the full-scale invasion of the Russian Federation into Ukraine. In Russia, the Danish company had two factories and developed four wind farm projects.
Before EcoPolitica wrote that by 2030, the Kingdom of Denmark intends to completely abandon the use of natural gas and quadruple the production of solar and wind energy.
