- Press Releases
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:|
|Turbine volume (in MWe)||3,079||17.2%||8,214||21.8%|
|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)