Siemens Gamesa Renewable Energy (Siemens Gamesa) has reported its financial
results for the first quarter of the fiscal year 2020. The Spanish-headquartered
turbine supplier swung to a loss in Q1 FY 2020, lowering its full-year
guidance accordingly. However, commercial performance was extremely strong.
Revenue fell from € 2.6 billion last year to €2 billion, and the company
reported a quarterly loss of €174 in the quarter, as opposed to the previous
year’s €18 million profit in the same period.
The company’s unforeseen costs have been attributed to five onshore projects
in north Europe, where adverse weather and road conditions hit Siemens
Gamesa to the tune of €150 million.
“This was not an easy quarter for Siemens Gamesa,” said Siemens
Gamesa’s CEO, Markus Tacke. “The company's financial performance fell
short of the expectations we had when we set our targets for the year.
However, this was a one-off impact and we do not expect it to recur in
future quarters as we are taking the necessary measures as we are taking
the necessary measures. We have stepped up risk analysis to ensure project
execution is on track and we will also strengthen our internal control
system to avoid a recurrence.
“The results also underlined the long-term opportunities for wind energy
and Siemens Gamesa. We are in an industry with huge potential and we are
taking advantage of this with intense commercial activity that resulted
in a record order book.”
Offshore commercial activity increased significantly, with the company’s
order doubling to over 2.2 GW, of which 1.3 GW were signed in the first
quarter. Siemens Gamesa’s pipeline now totals 9.6 GW. The company also
reported strong onshore commercial activity, with orders up 8.1%, and “an
extraordinary level of commercial activity” in service. The company has
credited the change in global conversation towards renewable energy with
its strong commercial intake. Sales stood at €2,0001 million, while the
company has reported a net cash position of €175 million.
Siemens Gamesa has reported that it is “focused on retaining a sound
balance sheet” and it “has introduced sustainability criteria
throughout its funding chain.” It will report more fully its strategy
for coming years on its Capital Markets Day, on 6th May 2020.
Q1 FY 2020 key results are outlined below:
Revenue: €2,001 million (Q1 FY 2019 result €2,262 million)
EBIT before PPA and integration and restructuring costs: -€136
million (Q1 FY 2019 €138)
Reported EBIT: -€229 million (Q1 FY 2019 €40 million)
EBIT margin before PPA and integration and restructuring costs: -6.8%
(Q1 FY 2019 6.1%)
Reported net profit: -€174 million (Q1 FY 2019 €18 million).
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