Wind turbine manufacturer and O&M provider Siemens Gamesa has posted a Q1 2023 net loss of roughly $964 million, noting that company performance was “severely impacted by the outcome of the evaluation of the installed fleet, mostly affecting the service business.”
“The negative development in our service business underscores that we have much work ahead of us to stabilize our business and return to profitability,” says Siemens Gamesa CEO Jochen Eickholt.
The company says it has witnessed “an upward trend in the failure rate of certain components, resulting in higher-than-expected warranty and service maintenance costs.”
On the flipside, Siemens Gamesa revenue for the quarter (October-December 2022) totaled approximately $2.18 billion, which is a nearly 10% increase year over year.
The company also signed new orders that amounted to about $1.75 billion during Q1 2023, joining an order backlog that is valued at approximately $36.8 billion.
“Despite the extremely challenging macroeconomic and geopolitical context in which we find ourselves, we have seen progress in other areas, such as with our Siemens Gamesa 5.X platform,” Eickholt says.
Moreover, the company has wrapped up a major organizational initiative that has resulted in the integration of onshore and offshore wind manufacturing and technology activities, which Siemens Gamesa says will result in cost and quality improvements.