Energy News Monitoring

Aenert news. Energy Companies
Last year's wind energy crisis, which has been brewing for some time now, has affected many companies, including industry leaders. In this brief review, we present data from last year's financial statements of the Chinese Goldwind, the Danish Vestas and the Vernova division of the American General Electric. Each of these companies are leaders in their local geographic markets, and they also have a strong presence outside their regions, particularly Vestas. Thus, the global installation at the end of 2023 for Vestas was approximately 177 GW, for Goldwind - 118 GW, for General Electric - more than 60 GW. At the same time, the total installed capacity of wind turbines in the world is about 1050 -1100 GW. Thus, the market share of the three above-mentioned companies is more than 30%. Starting from 2020, all high-tech industries, which include the production of wind turbines, are experiencing a whole range of business problems, including logistics, financial, technological, etc. This is due to the disruption of existing supply chains, unfavorable changes in prices for electricity, metals, fuel, and a shift in investor interests to other sectors of the economy.

Goldwind

Goldwind is one of the largest and most dynamically developing companies in the world. Over the past four years, Goldwind's wind turbine production has grown by more than 90%. More than 77% of the company's installed capacity is concentrated in China, however, it is also represented in the USA, Brazil, India and Europe. Goldwind maintained strong financial performance longer than other large companies, but 2023 was also a bad year for it. So Sale capacity amounted to 13.772 GW compared to 13.871 GW a year earlier. Despite the growth in Revenue in 2023, Profit margin decreased from 17.66% to 17.14%, and Net Profit collapsed from 2383 Million RMB to 1331 Million RMB. At the same time, the company received the main part of Net Profit in the first quarter of 2023, i.e. as a result of production activities of the previous year.

Goldwind. Revenue, net income and share price

As for quarterly indicators, in 2023Q4, they remained at a relatively low level. Profit margin is fixed below the annual average. Net Profit was only Million 70 RMB, and this low level has continued for the third quarter in a row. The company's share price has been declining for 6 quarters in a row. Some hope is given by the significant growth in Revenue in 2023Q4, reaching Million RMB 21,138, which is the highest result over the past nine quarters.

Vestas

Vestas remains the largest wind turbine manufacturer in the world. In 2022, the company experienced severe stress, accompanied by large losses. However, according to data for 2023, Vestas may be gradually emerging from this situation. The main thing is that the company received a small Net Profit of 78 mEUR against a loss of 1,572 mEUR a year earlier. Gross margin and EBITDA margin reached a convincing 8.3% and 7.1%, respectively.

Vestas. Revenue, net income and share price

In 2023Q4, stable growth of Revenue was confirmed, and Net Profit amounted to 149 mEUR. Among other things, optimism is inspired by the bullish reversal in the price of the company’s shares, which exceeded the price level at the end of 2021Q4.

GE renewable energy

GE Renewable Energy (Vernova) significantly increased its wind turbine output to 8.5 GW in 2023 compared to 7.5 GW in 2022. However, this was significantly less in the most productive year of 2021, when 11.7 GW were released. Net Loss of the Renewable Energy segment amounted to $1,437.

GE Renewable Energy. Revenue, net income and share price

Total Revenue in 2023Q4 increased by 19% compared to the same data a year earlier. Net Loss this quarter was the lowest in the last seven quarters - $347. Profit margin is fixed at 8.2%. The company's share price continued to rise for the fifth quarter in a row.

Thus, despite the subdued financial performance of the world's three largest wind energy companies, there are modestly optimistic results. We are talking primarily about the Vestas company. GE Renewable Energy remains in the red on profitability, but there is strong investor faith in the company. The last year was unsuccessful for Goldwind, however, the highest quarterly turnover was achieved in the last quarter, which could lead to stronger results in the next quarter.

By the Editorial Board