Nordex publishes positive order figures for 2023 - increasing demand, but still high costs and depreciation.

Nordex publishes positive order figures for 2023 - increasing demand, but still high costs and depreciation.

According to a report by www.deraktionaer.de,

The turbine manufacturer Nordex recorded a significant increase in order numbers in the fourth quarter and throughout 2023 compared to the previous year. Customers ordered a total of 1,270 wind turbines with a total output of 7.4 gigawatts, an increase of 16 percent compared to the previous year. Nevertheless, the average sales price fell from 0.89 million to 0.84 million euros per megawatt of output.

However, the positive order situation at Nordex contrasts with the company's lack of profitability. While the company managed to reach profitability operationally in the second and third quarters, it continued to record losses in day-to-day business in the first nine months. The bottom line was that Nordex was also in the red.

Lower sales prices and high costs as well as depreciation and interest payments continue to pose challenges for the company. The financial figures for the fourth quarter of 2023 and the full year will be published on February 29th.

The full order books and the lack of profitability illustrate the problems at Nordex. Only when margins rise will the share price increase significantly. The lower sales prices are a negative sign. It remains to be seen how the numbers will develop. The SHAREHOLDER currently favors the Danish competitor Vestas.

The positive order numbers could have a positive impact on the renewable energy market in the short term. However, Nordex's lack of profitability could unsettle long-term investors and lead to caution when investing in the company. Overall, however, the company's development is heavily dependent on improving margins in order to remain competitive in the long term.