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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].

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