Siemens Gamesa emerges from net loss in Q1 2020/21

Source: Siemens Gamesa Renewable Energy SA (www.siemensgamesa.com)

January 29 (Renewables Now) - Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:IBE) returned to profit in the first quarter through December 2020, posting EUR 11 million (USD 13.3m) compared to an EUR-174-million loss in the same period a year prior, it said in the full earnings release on Friday.

The latest results show that the company recorded EBIT pre-purchase price allocation (PPA) and integration and restructuring (I&R) costs of EUR 121 million, another swing from the loss of EUR 136 million booked in the troubled first quarter of the previous fiscal year.

The EBIT margin over sales improved to 5.3%, up from a negative 6.8% a year ago.

Revenues were up 15% year-on-year to EUR 2.3 billion, softened by currency depreciation, especially in the onshore and service markets. Without this effect, revenues would have jumped 21% on the year, Siemens Gamesa said.

The main figures are in line with the preliminary results released this week, with the company reiterating that its guidance for the current fiscal year remains unchanged.

Full-year revenues are projected to range between EUR 10.2 billion and EUR 11.2 billion. The EBIT margin pre-PPA and I&R is seen between 3% and 5% in 2020/21.

At the end of December 2020, Siemens Gamesa’s order book totalled EUR 30.1 billion, up 7% on the year, on the back of the 12-month firm order intake of EUR 12.4 billion. In the past quarter alone, the firm order intake was lower by 51% year-on-year to close to EUR 2.3 billion.

Siemens Gamesa continued to experience the impact of the COVID-19 pandemic on the execution of onshore wind projects, particularly in the US, but said it expects this to lessen in the coming quarters with the vaccination. The company noted that the COVID-19 impact was “clearly lower” than in the previous fiscal year, adding that this time there were no material disruptions to manufacturing or the supply chain.

(EUR 1.0 = 1.211)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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