A Billion Dollar Wind Turbine Bust

"Global leader" in offshore power posts $974 mln net loss in 3 months

Global green energy company Siemens Gamesa reported Thursday that it had lost a staggering $967 million during the three-month period from between October to December from turbines quality issues and market conditions.

It said that a broad mix of components had exposed quality flaws during an in-depth analysis, requiring the company to pay for potential future failures. The company last month flagged increased failure rates of unspecified components of its installed onshore and offshore wind turbines, triggering higher warranty provisions that have also plagued Danish rival Vestas (VWS.CO).

The Germany-based company, which dubs itself as "the global leader in offshore power generation," noted the wind industry has faced various unfavorable pressures leading to negative growth in recent months and years, in its earnings report for the first quarter of fiscal year 2023 released Thursday morning. The company added that governments would need to further assist the industry to ensure future positive growth.