German wind turbine maker Senvion SA (ETR:SEN) said today it is on track to achieve its 2017 guidance after the first nine months of the year, when its revenues fell 10% year-on-year.
The company blamed a challenging market environment for the decline in revenues to EUR 1.31 billion (USD 1.53bn). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were down to EUR 103 million from EUR 132 million, with the adjusted EBITDA margin of 7.9% being in line with the company's expectations.
Senvion confirmed its 2017 guidance for adjusted EBITDA margin of 8%-8.5% and revenues of EUR 1.9 million-1.95 million. Details of its results for the nine-month period are in the table:
|in EUR million
|Adjusted EBITDA %
The manufacturer said its order intake growth slowed in the third quarter due to a slowdown in established markets such as Germany, but it still managed to increase its orders in the first nine months by 51% to EUR 1.28 billion. In the third quarter, a 299-MW order in Chile became a firm order and the company booked two substantial conditional orders of 62 MW in Austria and 97 MW in Argentina. The order book remains stable at EUR 5.3 billion, Senvion said.
Chief executive Juergen Geissinger commented that Senvion's year-to-date order intake has been strong in spite of the worsening industry dynamics.
"We are in the middle of tremendous changes in the wind industry. Readjusting electricity prices by up to 50% within the last nine months and the shift to auction systems worldwide can only be tackled with innovative products and further focus on cost outs and efficiency improvements," commented chief financial officer Manav Sharma.
(EUR 1 = USD 1.164)
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