Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) on Thursday reported a fourth-quarter net profit of EUR 286 million (USD 284.4m), reducing accumulated losses to under a EUR 1 billion, while still missing the target for the fiscal year ended September 30.
After a EUR-1.23-billion loss for the nine-month period, the total annual net loss ended at EUR 940 million, compared to a EUR-627-million hole a year back. The results mirrored the tough market environment, marred by pandemic-related supply chain disruptions, geopolitical swings and inflation. Internally, the company was unable to overcome its persistent troubles with launching the Siemens Gamesa 5.X onshore turbine platform. Combined, these events increased the manufacturing, execution and delivery costs of projects, the turbine maker said.
The sale of the 3.9-GW onshore wind project portfolio in southern Europe during the fourth quarter added EUR 613 million to the takings, but the group’s full-year revenues still fell by 3.8% year-on-year to EUR 9.81 billion.
The annual loss of EBIT before purchase price allocation (PPA) and integration and restructuring (I&R) costs expanded, while EBIT margin pre-PPA and I&R costs was a negative 5.9% against the full-year target of minus 5.5%.
Selected figures from Siemens Gamesa’s fiscal year report are presented in the table:
| In EUR million (unless otherwise noted): |
Q4 2022 |
Q4 2021 |
y/y change: |
FY 2021/2022 |
y/y change: |
| Revenues |
3,372 |
2,863 |
17.8% |
9,814 |
-3.8% |
| -- turbines |
2,651 |
2,292 |
15.7% |
7,618 |
-7.9% |
| -- services |
721 |
571 |
26.2% |
2,196 |
14.0% |
| EBIT (loss) pre-purchase price allocation (PPA) and integration and restructuring (I&R) costs |
375 |
(177) |
-- |
(581) |
-- |
| EBIT margin pre-PPA and I&R costs |
11.1% |
-6.2% |
17.3 pp |
-5.9% |
-5.0 pp |
| Reported EBIT (loss) |
280 |
(279) |
-- |
(942) |
-- |
| Reported net income (loss) |
286 |
(258) |
-- |
(940) |
-- |
Annual onshore and offshore wind turbine revenues dropped by 3% and 15%, respectively, on lower manufacturing and project execution activity as the company wrestled with supply chain disruptions and the SG 5.X launch. The service division strengthened its revenues by increasing the average fleet under maintenance by 7% on the year to 82.1 GW and selling value-added services and spare parts, Siemens Gamesa said.
Order intake for onshore wind turbines dropped by 36% to 4.6 GW for the full year, due to protracted commercial negotiations and market delays. It also reflected Siemens Gamesa’s strategy to focus on core markets, profitability and reduced risk over volume, the company said. Offshore order intake declined by 12.5% to 3.04 GW.
In May this year, Siemens Gamesa launched the Mistral programme to revive the financial results in the medium and long term through internal reorganisation, which will also include parting ways with 2,900 employees.
“[W]ith the launch of the Mistral program, we have set the stage to deliver profitable growth and achieve our long-term vision. Before we get there, we have a transition year ahead of us, still impacted by elevated inflation, supply chain disruptions and geopolitical risks,” commented Siemens Gamesa CEO Jochen Eickholt.
In the meantime, the company will be preparing for a EUR-18.05 per share takeover by its majority owner Siemens Energy AG (ETR:ENR), which received the regulatory approval for the transaction three days ago.
(EUR 1.0 = USD 0.995)
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Source: Siemens Gamesa Renewable Energy SA (www.siemensgamesa.com)
