Gamesa upgrades 2016 guidance after record 9-mo results

Spanish wind-focused renewables group Gamesa (BME:GAM) on Thursday revised upwards its full-year sales and earnings projections again, after reporting record results for the first nine months of 2016.

The wind turbine maker now expects to achieve sales of more than 4,300 MW and not of at least 4,000 MW as previously estimated. Underlying earnings before interest and tax (EBIT), before the recent consolidation of a joint venture, is seen in the range of EUR 450 million to EUR 470 million rather than the previously projected minimum of EUR 430 million. EBIT margin is expected to be around 10%. These figures would be the best in the group’s history, it noted.

For the first nine months of 2016, Gamesa posted a 63% year-on-year jump in net profit to EUR 206 million. During the third quarter, the group consolidated offshore wind business Adwen, which was previously a joint venture with France’s Areva (EPA:AREVA). Excluding the EUR-18-million negative impact that move had on Gamesa, its nine-month net profit improved even more, by 84% to EUR 225 million.

Underlying EBIT pre-Adwen surged by 64.9% to EUR 340 million, with EBIT margin growing to 10.2% from 8.1%. Revenues climbed by 31.8% to EUR 3.34 billion as sales rose by 41.5% to 3,256 MW. All regions contributed to the growth in sales.

The group’s total order intake in January-September 2016 reached 3,301 MW after it booked a record 1,090 MW in the third quarter alone. The order book amounted to 3,242 MW at the end of September.

Meanwhile, in late October, Gamesa’s stockholders approved the company’s pending merger with the wind power business of Germany’s Siemens (FRA:SIE).

Gamesa pointed out it expects to maintain the profitable growth trend next year.

(EUR 1.0 = USD 1.091)

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