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By
illuminem briefings
November 9,
2023
Vestas: the wind is turning for equipment
manufacturer
illuminem
summarizes for you the essential news of the day. Read the
full piece on the Financial Times
or enjoy below:
Driving the news: Vestas, the Danish wind turbine
manufacturer, has signaled a positive shift in its financial
performance with a return to profit in the third quarter after nearly
two years of losses
• The company's shares surged by 9% following the announcement,
reflecting investor optimism
The context: Vestas has been proactive in adjusting its pricing
strategy, leading to an 11% increase in third-quarter revenues year on
year
• The company's efforts to raise prices for new turbines after 2021
are now yielding results, with stable sales volumes and improved
margins due to better pricing power and reduced supply chain issues
Why it matters for the planet: As a major player in the renewable
energy sector, Vestas's recovery is a positive indicator for the
industry's health
• With a focus on land-based turbines, Vestas has managed to navigate
through the challenges of cost inflation and supply chain disruptions,
setting a hopeful tone for the future of sustainable energy
infrastructure
What's next: The company anticipates further improvements, with an
average selling price increase of 5% over the previous quarter and
declining costs for steel and logistics
• While one profitable quarter doesn't guarantee long-term success,
there are signs that the renewable energy market is adapting to ensure
the viability of projects, which could lead to a more robust recovery
for the industry
One quote: "One breezy quarter does not a summer make. Yet Vestas’s
results should give the industry hope." (Roula Khalaf, editor at the
Financial Times)
One stat: Vestas's gross margin doubled to 8.1% in the third quarter,
a significant improvement that reflects the company's enhanced pricing
power and operational efficiencies amidst a challenging economic
environment.
Green Play Ammonia™, Yielder® NFuel Energy.
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Spokane, WA 99212
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