Siemens Gamesa posts slimmer Q3 net loss in FY 2020/21

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

July 30 (Renewables Now) - Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) on Friday reported a net loss of EUR 314 million (USD 373.5m) in its third quarter through June and confirmed lower guidance for the full fiscal year 2020/2021.

EBIT before purchase price allocation (PPA) and integration and restructuring (I&R) costs, the company’s key profitability metrics, was in the red by EUR 151 million, in line with the warning issued earlier this month. The EBIT loss stands in contrast to EUR 111 million in earnings three months prior, but is still an improvement compared to a loss of EUR 161 million in the same period of 2020.

Siemens Gamesa reiterated that the poor result stemmed from rising prices of raw materials and higher-than-expected costs to launch its 5.X onshore turbine platform, and was made worse by the pandemic in some countries, namely Brazil.

As of the third quarter, the company started introducing clauses into its onshore contracts to protect against commodity price volatility, mainly in steel towers, and would continue to incorporate cost inflation into contract pricing, it said.

Net losses for the April-June quarter and the first nine months were not as steep as they were a year ago, when they plunged to negative EUR 466 million and EUR 805 million, respectively. The company's revenues improved in both reporting periods.

The financial results are summarised in the table below:

In EUR million unless otherwise noted Q3 2020/201 Y/Y change: 9-mo 2020/2021 Y/Y change:
Revenues 2,704 12.1% 7,335 10.9%
-- turbines 2,179 11.9% 5,980 10.9%
-- services 525 13.2% 1,355 10.6%
Turbine volume (in MWe) 3,079 17.2% 8,214 21.8%
-- onshore 2,404 28.2% 6,075 15.2%
- offshore 675 -10.2% 2,139 45.4%
EBIT (loss) pre-PPA and before I&R costs (151) N.A. 81 N.A.
EBIT margin pre-PPA and before I&R costs -5.6% +1.1 p.p. 1.1% +5.1 p.p.
Reported EBIT (loss) (238) N.A. (243) N.A.
Attributable net income (loss) (314) N.A. (368) N.A.

Order intake in the third quarter plummeted by 71.5% to EUR 1.52 billion, as orders for offshore wind turbines and services were heavily concentrated in the previous quarter, Siemens Gamesa explained. Onshore turbine orders were down by 4% year-on-year to EUR 840 million, amounting to a volume of 1,352 MW.

Order backlog grew by 3.5% year-on-year to EUR 32.6 billion.

In the last 12 months, the turbine maker signed EUR 11.86 billion worth of orders, down 22.2% on the year.

Looking ahead, Siemens Gamesa expects an EBIT margin pre-PPA and I&R costs ranging between a negative 1% and 0%, confirming its full-year guidance announced in mid-July. Revenues for the year are seen to stand at the lower end of the EUR-10.2-10.5-billion range.

(EUR 1.0 = USD 1.189)

More stories to explore
Share this story
Newsletter
Tags
 
About the author

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.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription
\