Nordex Nine-Month Figures 2022: Sales At Previous Year's Level - Losses Widened - Stock Climbs
Hamburg, Germany - Nordex has published its figures for the first three quarters of 2022. Sales almost reached the same level as in the same period of the previous year, while consolidated net income slipped further into negative territory. Nevertheless, the stock is able to make significant gains.
Inflationary environment and supply chain issues weigh on business performance
Nordex generated total sales of EUR 3.9 billion in the period from January to September 2022. This means that Nordex is almost on a par with the previous year (Jan-Sep 21: 4.0 billion). Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to minus EUR 200 million (Jan-Sep 21: EUR 101 million), corresponding to an EBITDA margin of minus 5.2 percent (Jan-Sep 21: 2.5 percent). The consolidated result slipped further into the red with a loss of 372 million euros (Jan-Sep 21: - 104 million euros).
According to Nordex, the main negative factors are the persistently strong inflationary environment and supply chain disruption in particular. In addition, the current increase in order intake will only have a positive effect with a time lag. Looking at the year as a whole, Nordex now expects to achieve an EBIT margin at the lower end of the guidance range of around minus 4 percent issued on 24 May 2022.
Order value climbs to EUR 3.6 billion - Nordex raises selling prices by 32 percent
In the first three quarters of 2022, order intake in the Projects segment (excluding Service) came to 4,400 MW (Jan-Sep 21: 4,600 MW), equivalent to an order value of EUR 3.6 billion (Jan-Sep 21: EUR 3.2 billion). At the same time, the average sales price in euros per megawatt of capacity (ASP) reached 0.91 million euros/MW in the third quarter, an increase of 32 percent compared to the same period last year. "In a challenging market environment, we managed to achieve higher selling prices for new orders that will compensate for the massive cost increases triggered by external factors and boost our profitability in the medium term", says Nordex CEO José Luis Blanco.
In terms of regional differentiation, Europe accounts for most of the orders with 69 percent. Latin America follows in second place with 26 percent, followed by North America with 5 percent.
As of the end of September 2022, Nordex continues to have a high order backlog with a value of almost EUR 9.7 billion (Jan-Sep 21: EUR 8.0 billion). Of this, EUR 6.5 billion (Jan-Sep 21: EUR 5.0 billion) is attributable to the Projects segment and EUR 3.1 billion (Jan-Sep 21: EUR 3.0 billion) to the Service segment.
The Nordex Group increased its turbine production slightly from 4.8 GW in the previous year to 4.9 GW in the first nine months of 2022. Rotor blade production output totalled 3,357 units (Jan-Sep 21: 3,120 rotor blades).
"Focusing on the future, we presented our new N175/6.X turbine. In doing so, we are adding a highly efficient turbine to our product range that will enable us to meet the anticipated increase in demand from our customers over the next few years even more effectively. We remain confident about the promising medium-term global outlook for our industry", says Blanco optimistically about Nordex's further corporate development.
Stock makes strong gains after initial losses
After a weak start to the trading day, Nordex stock made strong gains yesterday. At the end of the day, it was the best-performing stock in the RENIXX index with a gain of 13.3 percent to EUR 11.16 (15.11.2022, closing price, Stuttgart stock exchange). The share price development is supported by a positive analyst comment by Guido Hoymann from Bankhaus Metzler, who, in view of the global efforts in climate protection and the transformation of the energy system, assumes a sustainable and long growth of the wind industry. He also states that suppliers such as Nordex have recognised the need to enforce cost-covering prices. He is hopeful that the second half of 2022 will be a turning point.
Source: IWR Online, 16 Nov 2022