Siemens Gamesa Increased Net Income in The First Half of FY 19 to €67 Million

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

Revenue increased by 6 percent year-on-year in the first half of FY 2019, to €4,651 million and by 7 percent 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 percent. 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 percent. According to the company 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 percent-8.5 percent), 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 percent YoY. Net debt amounted to €118 million at 31 March.

As Siemens Gamesa points out, the company 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 percent 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 percent year-on-year. In the last twelve months, order intake amounted to €10.9 billion (+8 percent YoY), supported by strong performance in all segments.

Source: IWR Online, 08 May 2019