Siemens Gamesa posts Q1 loss, cuts FY 2019/20 guidance

Author: Magnus Hagdorn.

January 30 (Renewables Now) - Siemens Gamesa Renewable Energy SA (BME:SGRE) has cut its forecast for the fiscal year to September 30, 2020 after posting a net loss of EUR 174 million (USD 191.7m) in the first quarter, the wind turbine maker’s preliminary and unaudited results show.

The company said a series of adverse events hit its onshore business and forced it to record one-off charges of around EUR 150 million in a 1.1-GW portfolio of five onshore wind projects in Northern Europe, mainly Norway.

Siemens Gamesa said these unforeseen charges stemmed from delays caused by the early arrival of winter, which coupled with poor road conditions, impacted the installation window.

The company’s offshore and service businesses performed in line with expectations, Siemens Gamesa stated.

Earnings before interest and tax (EBIT) pre-PPA and integration and restructuring (I&R) costs were in the red by EUR 136 million compared to a positive result of EUR 138 million in the first quarter of fiscal 2018/19. Revenues declined by 12% year-on-year to EUR 2 billion.

Siemens Gamesa expects the full-year EBIT margin pre-PPA and I&R to be between 4.5% and 6%, down from 5.5%-7% in its previous guidance. The company said the middle range of its revenue target, between EUR 10.2 billion and 10.6 billion, is already 98% covered by the order backlog.

The backlog reached EUR 28.1 billion as of December 31, while order intake swelled by 82% year-on-year to EUR 4.63 billion.

After the loss in the first quarter, compared to EUR 18 million in net profits in the same period a year before, Siemens Gamesa said it is “putting in place remedy actions” to get the execution of the project pipeline in Northern Europe back on track.

The company will present detailed financial results on February 4.

(EUR 1.0 = USD 1.102)

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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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