Spain-based wind turbine maker Siemens Gamesa’s net loss stood at €2.56 billion (~$2.8 billion) during the third quarter (Q3) of the financial year (FY 2023), a year-over-year (YoY) increase in losses of 458% from a loss of €405 million (~$443.4 million).

The company recorded a revenue of €2.05 billion (~$2.2 billion), a 16% YoY decrease.

Siemens Gamesa attributed the decrease in revenue to the reversal of income and the profit before special items facing a burden of expenses amounting to €2.2 billion (~$2.4 billion), including €1.6 billion (~$1.7 billion) linked to quality problems concerning specific onshore platforms.

A surge in failure rates of wind turbine components prompted an extensive technical assessment, which revealed that the costs to achieve the desired quality standards would be substantially higher than initially projected.

The remaining expenses were primarily connected to escalated product costs and the challenges encountered in scaling up operations within the offshore business, the company said.

Orders experienced a growth of over two times when compared to the previous year’s quarter. This expansion resulted from a greater volume originating from substantial orders, among which was a solitary offshore order valued at €2.3 billion (~$2.5 billion).

The order backlog was worth €39.9 billion (~$43.6 billion).

Siemens Gamesa received the approval of a capital reduction for the remaining 2.21% of shares not held by Siemens Energy, leading to the full integration of the company.

Parent company Siemens Energy said it is still experiencing positive conditions in the market, with orders amounting to €14.9 billion, indicating a growth of 54.2%. This growth is mainly attributed to significant orders placed at Siemens Gamesa and Grid Technologies (GT).

Christian Bruch, President and CEO of Siemens Energy AG, said, “Our third-quarter results demonstrate the challenges in turning around Siemens Gamesa. The strong performance of our other business areas gives me confidence in our company’s ability to put businesses back on a strong footing.”

The company said significant difficulties in scaling up operations within the wind industry overshadow the achievements in the traditional energy business.

During the quarter, Siemens Gamesa contributed green electricity to more than one million households in Denmark. The company also set up a 1 GW offshore wind park in the country.

The wind park comprises an array of 72 wind turbines, each rated at 14 MW in power. Out of this, 40 of the 72 wind turbines were equipped with blades designed to be recyclable, aligning with sustainability goals.

Siemens Gamesa’s net loss widened to €884 million (~$971.9 million) for the first quarter of the financial year 2023 from €403 million (~$443.2 million) YoY.