Friday 26 April 2019

Siemens Gamesa income tops $79m in fiscal 2018

MUNICH, November 6, 2018

Siemens Gamesa Renewable Energy, a global leader in the wind power industry, has posted a net income of €70 million ($79.7 million) in FY 2018, including the impact of integration and restructuring costs (€176 million).

The company also registered a revenue of €9,122 million ($10.4 billion) for the full year ended September 30, 2018.

EBIT pre-PPA, restructuring and integration costs was €693 million with an EBIT margin at 7.6 per cent, The EBIT margin is impacted by double-digit price decline in onshore wind turbine business partially compensated by synergies and productivity and the strong performance in service. The company increased its net cash position to €615 million at September 30.

In the fourth quarter (Q4) the company’s financial performance was strong, with revenue growth to €2,619 million (+12 per cent YoY) driven by the recovery of onshore volume and a high level of offshore project execution, with an EBIT margin (1) at 8.2 per cent. Net income amounted to €25 million.

The guidance for FY 2018 (revenues of €9-9.6 billion, EBIT margin (1) of 7-8 per cent, working capital of -3 per cent-3 per cent and capex of €500 million) was successfully achieved, laying the groundwork for profitable growth.

Strong commercial activity

In FY 2018 the company resumed strong commercial activity, with order intake of €11,872 million (+9 per cent YoY), boosted mainly by a recovery in onshore order intake (+30 per cent, to €6,682 million). Intense activity in offshore, with good progress in new markets, raised order intake to €2,795 million.

During the period, the company signed its largest-ever offshore order – an agreement to supply 165 turbines to Hornsea II, the world’s largest offshore wind farm to date. Within Service, the company signed contracts worth €2,395 million during FY 2018.

Siemens Gamesa achieved a new record backlog of €22.8 billion (+10 per cent YoY), providing enhanced visibility for 2019 and beyond and reaching revenue coverage of 80 per cent for FY 2019.

Next phase of the L3AD2020 program

Siemens Gamesa fully met its first-year objectives and is on track for the next phase, focused on leveraging economies of scale and laying the foundations for sustainable profitability, after achieving productivity improvements of €800 million, including synergies above €175 million.

The company has set the guidance for FY 2019: revenues of €10-11 billion and EBIT margin of 7-8.5 per cent, on track to meet FY 2020 targets based on financial framework launched at CMD.

Siemens Gamesa also appointed Christoph Wollny as chief operating officer (COO). This newly-created function will support to better address current and future market dynamics and further strengthen cost-cutting efforts.

Wollny brings 25 years of international experience in different industries and functions and joins SGRE from his current position as Chief Procurement Officer at Siemens’ Power & Gas division. – TradeArabia News Service

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