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Senvion says to return to growth by 2019 after near-term challenges

Senvion's 3.4M104 turbine. Source: Senvion SE 2014. License: All rights reserved.

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
Revenue 757m 604m 2.21bn 2.14bn

Gross margin %
 
25.4% 31.3% 28% 28.5%

Adjusted EBITDA
 
73m 81m 206m 210m

Adjusted EBITDA %
 
9.7% 13.4% 9.3% 9.8%
Adjusted EBIT 56m 58m 142m 154m
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)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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