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Reported by Siemens Gamesa Renewable Energy on 7 May 2019

Siemens Gamesa increased net income in the first half to €67 million, with a record order backlog of €23.6 billion

  • Revenue increased by 6% YoY in the first half, to €4,651 million, the EBIT margin pre-PPA and integration and restructuring costs stood at 6.8%, and net profit increased from €0 million in the same period last year to €67 million this year
  • In the second quarter, revenue increased by 7%, to €2,389 million, the EBIT margin pre-PPA and integration and restructuring costs amounted to 7.5%, and net income rose 40% YoY to €49 million 
  • Solid commercial activity enabled the company to fully cover the low end of the FY 2019 revenue guidance range (€10,000-€11,000 million)
  • The company has logged orders worth €10.9 billion in the last twelve months (+8% YoY), driven by strong performance in all segments

(Courtesy of Siemens Gamesa Renewable Energy, S.A.)

Siemens Gamesa Renewable Energy today reported the results of the first half (October-March) and the second quarter (January-March) of fiscal year (FY) 2019.

Revenue increased by 6% year-on-year in the first half of FY 2019, to €4,651 million and by 7% in the second quarter, to €2,389 million, supported by strong performance in Offshore and Service.

The company ended the first half of FY 2019 with EBIT pre-PPA and integration and restructuring costs of €316 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 6.8%. In the second quarter, EBIT pre-PPA and integration and restructuring costs amounted to €178 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 7.5%. This result was reached against a background of declining prices in the order book, partly offset by improvements in productivity, synergies and fixed costs as a result of the L3AD2020 transformation program and the higher volume of activity in Offshore and Service.

Performance was in line with the guidance presented for FY 2019 (revenues of €10,000-€11,000 million and EBIT margin pre-PPA and integration and restructuring costs of 7-8.5%), considering that Onshore activity is back-end loaded, concentrated in the fourth quarter.

Net income amounted to €67 million in the first half, from €0 million in the same period last year, and to €49 million in the second quarter, an increase of 40% YoY. Net debt amounted to €118 million at 31 March.

Siemens Gamesa has become the first wind turbine manufacturer to attain an investment grade rating. The company obtained a BBB- long-term credit rating, with positive outlook, from Standard & Poor’s (S&P), and a Baa3 outlook stable rating from Moody’s. Siemens Gamesa has debuted in the public rating arena within investment grade.

Commercial activity remained strong during the period, with a record order backlog of €23.6 billion (+7% YoY), fully covering the low end of the FY 2019 revenue guidance range, providing enhanced visibility for following years.

Order intake amounted to €2.5 billion in the second quarter of FY 2019, driven by Service, where order intake increased by 11% year-on-year. In the last twelve months, order intake amounted to €10.9 billion (+8% YoY), supported by strong performance in all segments.

During the quarter, Siemens Gamesa continued to reinforce its technological leadership. After presenting a 10 MW offshore wind turbine, the SG 10.0-193 DD, the company has unveiled a new platform with the SG 5.8-155 and SG 5.8-170 wind turbine models, including the largest Onshore rotor in the market. This platform is a combination of proven and next-generation technologies, with a highly flexible design which makes it suitable for a broad range of sites. Production of the SG 5.8-155 model is scheduled to commence in Q4 2020, while the SG 5.8-170 will start in Q1 2021.

References

[1]

Siemens Gamesa Renewable Energy, S.A. Press release - Siemens Gamesa increased net income in the first half to €67 million, with a record order backlog of €23.6 billion. URL: https://www.siemensgamesa.com/en-int/newsroom/2019/05/190507-siemens-gamesa-news.... [Date Accessed: 07/05/2019].

05 Nov | Siemens Gamesa achieves record commercial activity in FY 2019 powered by energy transition

  • The company fulfils market guidance with an EBIT margin before PPA and integration and restructuring costs of 7.1% and an increase in revenues of 12.1% year-on-year to €10.23bn despite industry price pressure; net income doubled to €140m compared to FY 2018
  • Siemens Gamesa closes fiscal year 2019 with a record order book of €25.5bn (+12% YoY), as wind power is increasingly recognised as critical to the fight against climate change. The company also strengthen its balance sheet with a net cash position of €863m at the end of FY 2019, up €248m YoY

  • The company focuses on sustaining profitable growth as it aims to optimize structural costs through global white collar headcount reductions of up to 600 over the next two years

31 Oct | Giant leap forward in floating wind: Siemens Gamesa lands the world’s largest project, the first to power oil and gas offshore platforms

  • The world’s largest floating offshore wind power plant, Hywind Tampen, will be located in Norway, with a total capacity of 88 MW and equipped with 11 SG 8.0-167 DD turbines.
  • By reducing the use of gas turbines on the fields, the project helps cut CO2 emissions by more than 200,000 tonnes per year.
  • Strong collaboration between Siemens Gamesa and Norwegian company Equinor has made it possible to unlock new offshore areas and develop this innovative power generation solution.

30 Oct | Siemens Gamesa pioneers the green foreign exchange hedging market

  • In a landmark deal arranged with BNP Paribas, Siemens Gamesa has launched a notional total of €174 million in FX hedging contracts for 'sustainable' transactions .

  • This operation will help mitigate the FX exposure of selling offshore wind turbines in Taiwan and contributes to the UN’s Sustainable Development Goals.

28 Oct | Taiwanese 376 MW Formosa 2 offshore wind project set for launch 

  • Siemens Gamesa will install 47 SG 8.0-167 DD offshore wind turbines.

  • The contract includes a 20-year full-service agreement.

  • The order takes SGRE’s confirmed backlog in Taiwan’s market to close to 2 GW.