Siemens Gamesa announces financial makeover for 2021-2023

Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) today presented a plan to rise from the profitless pit that came to represent its 2019/2020 fiscal cycle, aiming to revive its operating margin in the coming years.

The company said the new strategy will prioritise profitability over volume, with a focus on cash generation, efficiency, innovation and productivity. It will aim to achieve an EBIT margin pre-PPA and I&R of 3% to 5% in 2021 and 8%-10% in 2023, assuming that there will be no second wave or a significant prolongation of the ongoing COVID-19 pandemic.

In the third quarter ended June, its EBIT margin dropped to a negative 6.7%.

Revenues for 2021 are seen between EUR 10.2 billion (USD 12.1bn) and EUR 11.2 billion.

Siemens Gamesa said it plans to introduce new and differentiating technology to turn around its onshore business, which unlike the offshore and service divisions, has been strongly affected by the disrupted supply chains.

The company is betting that the increased global appetite for renewables and the advent of green hydrogen will speed up its recovery. It expects strong growth in the offshore and services markets over the next decade, and demand in onshore to remain solid.

(EUR 1.0 = USD 1.183)

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