Still loss-making wind turbine producer Nordex on the back of a massive order backlog in principle expects higher sales and earnings this year, but cautioned its guidance depends on the economic impact of Covid-19 and how quickly the coronavirus can be contained.
The German-Spanish OEM began 2020 with a well-filled order book for new wind turbines of €5.5bn ($5.96bn) (up 43% from the previous year), and had another €2.54bn in service orders (up 14.4%).
“Subject to the unforeseeable extent and duration of the measures taken worldwide to contain COVID-19 and their economic impact, the Nordex Group anticipates consolidated sales of €4.2-4.8bn for the current financial year in which sales in the second half of the year will exceed those of the first half,” the company said in its earnings statement.
Nordex also gave a guidance for earnings before interest, taxes, depreciation and amortisation (Ebitda) of €160-240m.
Against the backdrop of Covid-19, this year’s business performance is subject to significant uncertainty, which primarily result from action that has already been and has yet to be taken in many countries to contain the virus, and from the spread of the disease itself, the manufacturer said.
The guidance is therefore based on the expectation that Nordex will be able to process its strong order book efficiently and without any material interruptions despite the current and possible future measures taken to contain Covid-19.
As of early Tuesday, none of the company’s manufacturing plants were affected by virus-related closures, the company told Recharge. Other OEMs, such as Siemens Gamesa and Vestas, already had to close plants in Spain temporarily.
Should significant disruptions occur in the wake of the pandemic, a correction to its guidance may be necessary, Nordex cautioned.
The company last year registered a 33.6% jump in consolidated sales to €3.28bn, while its Ebitda rose by 21.7% to €123.8m.
Nordex in 2019 still had a consolidated net loss of €72.6m, after a net loss of €83.9m a year earlier.
The company saw 3.1GW of its turbines installed last year, up from 2.5GW in 2018.
The OEM in 2019 added three new models of its Delta4000 platform in the 4 and 5MW class, the N149/5X and N163/5X for weak and moderate wind speeds, as well as the N155/4.5 for markets with limited grid availability.
“We used the past year to further expand our product portfolio based on the Delta4000 platform and steadily enhance the efficiency of our products,” said chief executive said José Luis Blanco.
“By doing this, we are addressing the different requirements of our customers and international markets around the world. We are also aligning and further developing our global supply chain.”
