Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) on Tuesday released its preliminary financial results for the second quarter, uncovering a grim December through March period that ended up forcing the company to put its 2022 guidance “under review”.
The second-quarter revenues are estimated at around EUR 2.2 billion (USD 2.39bn), below EUR 2.3 billion posted in the same period a year ago, but still up in quarter-on-quarter terms. EBIT pre-purchase price allocation (PPA) and integration and restructuring (I&R) costs is expected to be in the red by EUR 304 million, far from the EUR-111-million earnings recorded on the same item line a year back, according to the unaudited results. In the October-December quarter, EBIT pre-PPA and I&R costs came at a negative EUR 309 million.
Siemens Gamesa also complained of a “very low” order intake in the second quarter, saying it signed EUR 1.2 billion of new orders during this period.
Troubles related to the launch of the 5.X turbine platform that have been plaguing the company quarter after quarter appear to be “more complex than previously understood”, and continue to impact production and project execution schedule, Siemens Gamesa said. External obstacles, such as pressure on energy, commodities and transportation costs, availability of key turbine components, harbor congestions, and delayed customers’ investment decisions, also weighed on the financial results.
In light of these challenges, and bracing for further impact from the current geopolitical tensions, cost inflation, global supply chain disruptions and Covid-19 pandemic, Siemens Gamesa decided to reassess its full-year guidance for the 2021/2022 fiscal cycle. “No longer valid” and “under review” is the company’s previous expectation to record a revenue decline of between 9.0% and 2.0% year-on-year, with EBIT margin pre-PPA and I&R costs standing in the -4.0% to +1.0% range.
Siemens Gamesa said it would still continue to work to achieve these results, expecting them to remain within the guided range even after accounting for the favourable impact of the agreed sale of its 3.9-GW onshore wind platform to SSE Renewables.
The final results for the second quarter will be out on May 5.
(EUR 1.0 = USD 1.086)
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Siemens Gamesa wind turbine. Photo taken from Siemens' website (www.siemens.com).
