April 26 (Renewables Now) – The renewable energy business of General Electric (NYSE:GE) saw its loss widen significantly in the first quarter of 2022, hit by lower onshore wind sales in the US and materials cost inflation.
The division suffered a loss of USD 434 million, compared to USD 234 million a year ago, with its margins continuing to deteriorate, contracting by 790 basis points reported and 820 bps organically to negative 15.1%.
Revenues fell 12% reported and 10% organically to USD 2.9 billion, reflecting lower onshore wind equipment deliveries in North America and selectivity at the segment’s grid operations, while services showed growth. Wind turbine sales dropped to 502 units representing 1.7 GW from 778 units totalling 2.4 GW a year ago.
Orders recorded a steeper decline of 21% reported and 19%, down to USD 2.8 billion, as onshore equipment orders shrank due to inflation-driven customer delays and the US market decline.
GE expects to start shipping Haliade-X offshore turbines for commercial projects in the second half of the year.
The company said the renewable energy segment is navigating through the market challenges with a focus on decentralisation, selectivity, price and cost actions.
In 2021, the business made a loss of USD 795 million.
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