Wind turbine maker Siemens Gamesa SGREN.MC said on Thursday it expected to steadily increase margins over the next three years, even though a timid return to operating profit in the fourth quarter was not enough to save it from an annual loss.

Beset by a slowdown in the Indian market, cost overruns in Northern Europe and disruptions linked to COVID-19, the German-Spanish company reported a net loss of 918 million euros ($1.08 billion) for its fiscal year ended September.

Demand for wind energy as countries and companies look to cut planet-warming carbon emissions helped propel orders 15.6% higher from the previous year to 14.7 billion euros.

The company confirmed a target to increase revenue from now on and bolster its margin on core earnings before interest, tax and some other costs to 8-10% in 2023.

 

Even before the pandemic snarled supply chains and halted manufacturing, building wind turbines had become less profitable in recent years as governments shifted to competitive auctions for power production and many phased out subsidies.

Rising steel costs – partly due to trade battles between the United States and China – had also squeezed margins.

Despite all the headwinds, Siemens Gamesa’s shares have soared 60% so far this year on the expectation it will benefit from rising demand for renewable energy.

 

Chief Executive Andreas Nauen, who took over in the top spot in June after heading up the more profitable offshore division, has pledged a turnaround and is hoping to capitalise on new technology like a new turbine with a 222-metre rotor.

On Wednesday, Danish peer Vestas VWS.CO reported a positive surprise for profits but a disappointing order intake and global uncertainty over the outcome of the U.S. presidential election dragged on its shares.