Business World of Renewable Energy

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Nordex In Line With Expectations In The First Quarter Of 2020

Hamburg, Germany - The Nordex Group has confirmed the preliminary figures for the first quarter of 2020 (Q1/20) published on May 5, 2020. Revenues, earnings before interest, taxes, depreciation and amortization (EBITDA) and the EBITDA margin all increased substantially, with the net loss rising slightly over the same quarter of the previous year.

Current performance is being weighed down by the effects of the COVID 19 pandemic, which have led in part to interruptions in the supply chain and in production, a situation which is still continuing. Nordex has withdrawn the guidance for the current fiscal year and postponed it for an indefinite period.

Nordex sales approaching the EUR 1 billion mark in the first quarter

On Monday (May 11, 2020), Hamburg-based wind turbine manufacturer Nordex presented its figures for the first quarter of 2020. According to these figures, sales in Q1 2020 rose by 141.8 percent to EUR 964.6 million (Q1/19: EUR 398.9 million). Earnings before interest, depreciation and taxes (EBITDA) rose by 297 percent to 13.1 million euros (Q1/19: 3.3 million euros). This results in an EBITDA margin of 1.4 percent (Q1/19: 0.8 percent). The bottom line is a negative consolidated net income of minus 38.0 million euros, which is 3 million euros more than in the prior-year quarter (Q1/19: -35 million euros). Compared to the end of the year, total assets increased only slightly. The equity ratio stood at 17.3 percent (December 31, 2019: 18.6 percent). Net debt amounted to EUR 156.4 million (31 March 2019: EUR 110.3 million) and the working capital ratio as a percentage of consolidated sales was at minus 7.5 percent (31 March 2019: minus 1.5 percent).

Project installations pick up significantly in Q1/20, order backlog climbs further

The increase in sales is primarily due to the significant rise in construction figures in the Projects segment. In the first quarter of 2020, the Nordex Group installed 269 wind turbines in 21 countries, around 220 percent more than in the previous year (Q1/2019: 84). The output of installed wind power systems rose by 245 percent to a total of 899.2 megawatts (MW) (Q1/19: 260.9 MW).

In the first three months of 2020, the Nordex Group increased its order intake in the Projects segment (excluding Service) to 1,643.9 MW (Q1/19: 1,035.1 MW) worth EUR 1,184.6 million (Q1/19: EUR 810.2 million). The order volume in Europe was particularly high at 1,292 MW, making up nearly 79 percent overall. Latin America accounted for 352 MW or 21 percent. Norway, Chile, the UK, Turkey and Finland were the strongest individual markets. At the end of the first quarter of 2020, the Nordex Group had order books of EUR 5.8 billion in the Projects segment (March 31, 2019: EUR 4.4 billion) and EUR 2.6 billion in the Services segment (March 31, 2019: EUR 2.2 billion), resulting in total order volumes of EUR 8.4 billion.

Forecast 2020 reduced due to COVID-19

Given the current situation in the wake of the COVID 19 pandemic and the uncertainty surrounding its continued existence, Nordex downgraded its guidance for the current year on May 5, 2020. According to the wind turbine manufacturer, it is currently impossible to predict when a new guidance for the current fiscal year 2020 will be available.

Source: IWR Online, 14 May 2020