Gamesa eyes up to 3.8 GW of sales in 2017, profitable growth

Spanish wind turbine maker Gamesa (MCE:GAM) aims to reach sales of 3.5 GW to 3.8 GW in 2017 and double its earnings before interest and tax (EBIT) when compared to the EUR-181-million (USD 204m) result in 2014.

Today the company presented its Outlook 2015-2017, under which it targets profitable growth, rising dividends of or above 25% of annual net profit, and accelerate shareholder value creation.

Gamesa wants to keep its market position in India, Mexico and Brazil, as well as China. It will also expand into Asia-Pacific and Africa and grow its presence in the US, Europe and other mature markets. The company said it will roll out a new 3.3-MW platform tailored for major markets such as Europe, Mexico, Canada, Australia and South Africa, while it will also extend its 2.5-MW platform to India and Brazil.

A key goal in Gamesa’s plan is to maintain profitability regardless of demand performance, it said. The firm expects to enhance profitability ratios through strict control of fixed costs and the launch of new continuous improvement programmes. The Spanish company also plans to generate net cash flow throughout the 2015-17 period.

Financial guidance	2015	2017
Turbines sold (MWe)	circa 3,100	3,500-3,800
EBIT margin	=> 8%	>8%
EBIT		double 2014 result
Working capital/revenue	<5%	<5%
Capex/revenue	4%-5%	<3.5%

The company is eying revenue growth of 20% in the area of operation and maintenance (O&M) through 2017, through an increase in the wind capacity under maintenance, new long-term contracts and an offer of value-added products.

(EUR 1 = USD 1.126)

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