Siemens Gamesa books EUR-918m net loss in FY 2019/2020

Siemens Gamesa's turbine blades brought to the West Bakr site. Image by Siemens Gamesa on Twitter (@SiemensGamesa)

Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) posted a net loss of EUR 918 million (USD 1.08bn) in the fiscal year to end-September 2020, compared to a profit of EUR 140 million in 2018/2019.

Revenues for the year decreased by 7.3% to EUR 9.48 billion, with the COVID-19 pandemic alone contributing to about EUR-1.0-billion drop in sales due lower commercial activity and delays in project execution, the company said.

Besides the pandemic, the financial performance was further affected by the continuing slowdown in the Indian market and cost overruns associated with onshore wind projects in Northern Europe.

In the fourth quarter, Siemens Gamesa recorded a net profit loss of EUR 113 million and a revenue drop of 2.6% to EUR 2.87 billion.

The results for the FY 2019/2020 and Q4 are presented in the table below:

In EUR million (unless otherwise noted)	FY 2019/2020	y/y change:	Q4	y/y change:
Revenues	9,483	-7.3%	2,868	-2.6%
-- onshore	7,704	11.1%	2,433	21.1%
-- offshore	2,264	-11.4%	793	37.7%
-- service	1,768	18.4%	543	30.3%
EBIT (loss) pre-purchase price allocation (PPA) and integration and restructuring (I&R) costs	(233)	N.A.	31	-87.6%
EBIT margin pre-PPA and I&R	-2.5&	-9.5 p.p.	1.1%	-7.4 p.p.
Reported EBIT (loss)	(958)	N.A.	(139)	N.A.
Attributable net profit (loss)	(918)	N.A.	(113)	N.A.

The full-year order intake swelled to EUR 14.7 billion, up 15.6%, with the backlog reaching EUR 30.2 billion.

Siemens Gamesa’s offshore turbine business this year doubled order intake to 4.1 GW, while order intake for the onshore equivalent dropped by 13.5% to 8.1 GW. The strongest performer of the company’s three divisions was Service, which grew order intake by 53% to EUR 4.1 billion over the year, with fleet under maintenance growing by 23.7% to 74,240 MW. Service now accounts for one half of Siemens Gamesa’s total backlog, the turbine maker said.

The company maintained forecast for the coming years, seeing revenues between EUR 10.2 billion and EUR 11.2 billion in 2021. It projects that the EBIT margin pre-PPA and I&R will be between 3% to 5% in 2021 and 8%-10% in 2023.

(EUR 1.0 = USD 1.181)

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