March 16 (Renewables Now) - Senvion SA (ETR:SEN) today guided for slightly lower revenues and softer margins in 2017 compared to 2016 but said it will return to "profitable, capital-efficient and international growth" by 2019.
The German wind turbine maker's expectations for this year reflect near-term market trends, including pricing pressure and slowing wind growth in current markets. The company said it is responding to these challenges betting on three things -- new market entries, product portfolio optimisation and organisational efficiency. Chief executive Juergen Geissinger said that its announcement earlier this week -- involving plans for 780 job cuts -- was part of the overall strategy to ensure Senvion's successful future.
In 2016, revenues were up 3.4% year-on-year to EUR 2.21 billion (USD 2.37bn), although they were marginally lower than projected due to "minor project delays out of Senvion's control". Adjusted EBITDA margin was 9.3%.
In 2017, Senvion expects revenues of EUR 2 billion to EUR 2.1 billion and EBITDA margins of about 8% to 8.5%. The company, however, targets 2019 revenues of EUR 2.6 billion-2.7-billion with adjusted EBITDA margins of 9.5%-10.5%.
In the fourth quarter, revenues grew by 25% and adjusted EBITDA margin was 9.7%. Firm order intake was up 51% year-over-year to EUR 458 million, while for the whole of 2016, firm order intake was EUR 1.3 billion.
More details of the company's financial performance are in the table below:
|In EUR||Q4 2016||Q4 2015||2016||2015|
Gross margin %
Adjusted EBITDA %
|Adjusted profit after tax||54m||45m||81m||63m|
The company's financials for the separate periods are adjusted for effects from power purchase agreements (PPAs) and other factors.
(EUR 1.0 = USD 1.072)