General Electric Co. (NYSE: GE) expects its offshore-wind operations to post annual losses of about $1 billion (£822 million) for this year and next as the industry struggles with rising costs.
“Offshore Wind remains difficult this year with losses of roughly $1 billion,” Chief Executive Officer Larry Culp said during a conference call with analysts Tuesday.
“Next year, we expect offshore will have similar losses but substantially improved cash performance.”
Culp’s comments come as offshore-wind developers face increasing challenges including supply-chain disruptions, rising costs for components and higher interest rates.
That’s likely to delay some projects and push out demand for turbines.
Still, there are bright spots for GE, including the installation this month of its first Haliade-X model at a project under construction south of Massachusetts.
“We are staring at some challenges that we need to address,” Culp said. “We know the industry is ready for a reset.”
The company expects to spin off its power and renewable energy operations next year, to become GE Vernova.
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