Siemens Gamesa narrows net loss to EUR 627m in FY 2020/21

Siemens Gamesa offshore wind turbine being loaded onto cargo ship. Source: Dominion Energy Inc

November 8 (Renewables Now) - Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) posted a net loss of EUR 627 million (USD 725.1m) in the fiscal year through September 2021, reducing it from a EUR-918-million loss in a year-ago period.

The company attributed the result to “market imbalances”, saying that the global demand was recovering while supply chains continued to suffer the effects of the COVID-19 pandemic.

“Those imbalances resulted in shortages of certain components, delays in deliveries, and a sharp increase in prices of both components and commodities and transport costs,” and were more visible in the second half of the year, Siemens Gamesa said in its earnings report. Higher-than-expected costs to launch the 5.X onshore turbine platform added to the unfavourable result.

“We are operating in a very difficult environment with challenging short-term market dynamics and low visibility on supply chain normalization, and we will continue our efforts to return the company to sustainable profitability,” said CEO Andreas Nauen.

Full-year EBIT before purchase price allocation (PPA) and integration and restructuring (I&R) costs ended in the red by EUR 96 million, an improvement compared to an EBIT loss of EUR 233 million. The EBIT margin pre-PPA and I&R costs was 0.9%, in line with the lower end of the forecast.

The fourth-quarter net loss expanded to EUR 258 million, compared to a loss of EUR 113 million in the same period a year ago.

Siemens Gamesa financials are summarised in the table below:

In EUR million (unless otherwise noted) FY 2020/2021 y/y change Q4 2020/2021 y/y change
Revenues 10,198 7.5% 2,863 -0.2%
-- onshore 5,005 2% 1,463 -2.4%
-- offshore 3,266 16.3% 829 0.36%
-- services 1,926 8.9% 571 5.2%
EBIT (loss) pre-PPA and before I&R costs (96) NA (177) NA
EBIT margin pre-PPA and before I&R costs -0.9% +1.5 pp -6.2% -7.3 pp
Reported EBIT (522) NA (279) NA
Attributable net income (loss) (627) NA (258) NA

Full-year order intake across all three commercial segments -- onshore, offshore and services -- fell by 17.3% year-on-year to EUR 12.2 billion. In the fourth quarter, order intake rose by 12.5%.

Order backlog grew by 7.6% to EUR 32.5 billion at the end of the fiscal year.

The turbine company expects ongoing challenges in the supply chain and logistics to continue in the near term. Looking at the next fiscal year, it projects a revenue decline of between 2% and 7%, and an EBIT margin pre PPA and before integration and restructuring costs to be in the 1%- 4% range, it said.

(EUR 1.0 = USD 1.156)

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