Business World of Renewable Energy

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Nordex Increases Sales and Earnings in the First Half of 2021

Hamburg, Germany - Wind turbine manufacturer Nordex is satisfied overall with its performance in fiscal 2021 in the first six months from January to June.

While the indirect effects of the COVID 19 pandemic are still being clearly felt in the raw materials and logistics markets, the direct effects are increasingly easing in the operating business. All in all, Nordex was able to increase sales by over 30 percent in the first half of the year and improve EBITDA. Although a net loss remains, this was substantially reduced compared with the same period of the previous year.

Nordex sales rise sharply to EUR 2.7 billion

Nordex's sales rose to EUR 2.7 billion (bn) from January to June 2021 as a result of the significantly higher level of activity. Compared with the same period last year, this represents growth of 31.7 percent (H1 2020: 2.0 billion). Total operating revenue, which also includes changes in inventories, increased by almost 17 per cent to 2.32 billion euros (H1 2020: 1.99 billion euros).

The positive development was only marginally affected by the impact of the COVID 19 pandemic on the operating business in the second quarter. Indirect effects of the pandemic due to distortions in the raw materials and logistics markets, on the other hand, are still clearly visible, according to Nordex. Against this backdrop, EBITDA came to EUR 68.4 million (H1 2020: EUR -70.8 million). This corresponds to an EBITDA margin of 2.5 percent (H1 2020: -3.5 percent). The bottom line is a consolidated net loss of 63.7 million euros, after a loss of 180 million euros in the first 6 months of 2020.

"Our business performance continued to gather momentum in the second quarter, with profitability in particular improving as expected compared to the first quarter. While the direct consequences of the pandemic continue to subside, due in part to the widespread vaccination of our workforce, the indirect impact of this crisis is still readily apparent from the disruption to the raw materials and logistics markets", says José Luis Blanco, Chief Executive Officer (CEO) of the Nordex Group.

Order intake up - order backlog down slightly

The Nordex Group increased its order intake in the Projects segment (excluding Service) by 9.9 percent to 2,800 megawatts (MW) in the first six months of 2021 (H1 2020: 2,500 MW). Of the order intake (in MW), 71 percent was attributable to Europe and 29 percent to Latin America. At the end of the first half of the year, the Nordex Group's order backlog totalled EUR 7.7 billion (H1 2020: EUR 8.1 billion). Of this, EUR 4.8 billion (H1 2020: EUR 5.4 billion) was attributable to the Projects segment and EUR 2.9 billion (H1 2020: EUR 2.7 billion) to the Service segment.

Forecast for 2021 as a whole confirmed

Nordex confirms its forecast of achieving consolidated sales of EUR 4.7 to 5.2 billion and an EBITDA margin of 4.0 to 5.5 percent in the current fiscal year. Capital expenditure is expected to be around EUR 180 million and the working capital ratio in relation to consolidated sales below minus 6 percent. Nordex points out that the forecast, as already emphasised when it was presented in March 2021, is subject to greater uncertainties than usual.

Capital increase successful, guarantee credit line increased and extended; RCF terminated early

The Nordex Group successfully completed the capital increase announced at the end of June 2021 in July, raising gross issue proceeds of EUR 586.2 million through the issue of around 42.7 million new shares. In parallel with the capital increase, Nordex increased the existing guarantee credit facility by EUR 171 million to a total of EUR 1.41 billion by exercising a top-up option and cancelled the state state guaranteed RCF associated with Corona ahead of initial maturity.

Share price softens

In yesterday's trading, Nordex's share price initially picked up after the publication of the financial figures and at times even led the RENIXX. At the end of the trading day, however, Nordex stock was down 3.2 percent at EUR 16.39 (closing price on 12 August 2021, Stuttgart stock exchange). In today's trading, Nordex stock is continuing to lose ground, currently down 1.7 percent at EUR 16.11 (2.21 p.m., 13.08.2021, Stuttgart Stock Exchange).

Source: IWR Online, 13 Aug 2021