Nordex Stock Going Through the Roof According to Figures
Hamburg, Germany - The wind turbine manufacturer Nordex, listed in the RENIXX World regenerative stock index, has released its figures for 2019. Sales have risen by around one-third and EBITDA has also improved substantially.
Sales up 33.6 percent in 2019, EBITDA up 22 percent
With the financial statements presented yesterday (March 24, 2020), the Nordex Group confirms the preliminary results published on March 9, 2020. Consolidated sales increased significantly by 33.6 percent to EUR 3.28 billion (2018: EUR 2.46 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 22 percent to EUR 123.8 million (2018: EUR 101.7 million). The company’s EBITDA margin was 3.8 percent (2018: 4.1 percent). The working capital ratio improved significantly from minus 3.8 percent in the previous year to minus 9.1 percent at the end of 2019. Investments increased in line with expectations to EUR 172.5 million (2018: EUR 112.9 million). As a result, free cash flow amounted to minus EUR 126.0 million (2018: EUR 44.0 million). At the end of the year, the Nordex Group had cash and cash equivalents of EUR 510.0 million, which remains at a good level (31 December 2018: EUR 610.0 million). Net debt amounted to EUR 84.0 million (31 December 2018: EUR 32.5 million).
Sales could rise to almost Euro 5 billion in 2020
Nordex is fundamentally optimistic about developments in 2020. The year 2020 began with a well-filled order book for new wind turbines of EUR 5.5 billion, up 43 percent on the previous year (2018: EUR 3.9 billion). In light of this, the company once again expects a visible rise in sales and a further increasing operating profit.
In view of the corona crisis, however, business performance in 2020 is also subject to considerable uncertainty. These are primarily result from the action that has already been and has yet to be taken in many countries to contain the virus, and from the spread of the disease itself, says Nordex.
As things stand at present, Nordex anticipates consolidated sales of EUR 4.2 to 4.8 billion for the current fiscal year, with sales in the second half of the year exceed those of the first half. Nordex expects EBITDA to be in a range of EUR 160 to 240 million. This forecast is based on Nordex's expectation that it will be able to process its strong order book efficiently and without any material interruptions despite the current and possible future measures to stem the corona crisis. However, according to the wind turbine manufacturer, a correction may be necessary if there are any material disruptions in the wake of the pandemic.
Nordex with 400 MW order - Shares starting to rally
In recent weeks, Nordex stock has suffered heavy losses in the wake of the corona crisis. Since the beginning of 2020, the price had roughly halved. The figures presented yesterday (March 24, 2020) including full order books and the expectations for future performance were well received by investors. In addition, a record 400 MW order for the Norwegian wind farm "Øyfjellet" was placed. The customer for the 72 N149/5.X turbines is an investor from Germany. The stock yesterday went through the roof and closed at EUR 7.63 with a gain of 30.7 percent. In today's trading, the stock is currently trading at EUR 7.84, an increase of 2.75 percent (March 25, 2020, 14:58, Stuttgart Stock Exchange).
Source: IWR Online, 25 Mar 2020